Your laws in Kentucky may be different than ours here in Connecticut. Actually I have not run into this distinction in a foreclosure action. 

Is the foreclosure you are talking about a mortgage or a lien foreclosure?

My guess is that it may have something to do with a deficiency judgment....possibly a resulting judgment lien being foreclosed on a separate property. In Connecticut the court would have to have in personam jurisdiction in order to render a deficiency judgment against a defendant property owner personally.

When a property's value declines below the mortgage debt and costs of foreclosure litigation, the lender is entitled to a deficiency judgment against the property owner. Once the lender has the deficiency judgment it can invoke the full range of  post judgment remedies, including: garnishment of bank accounts, wage garnishment, property execution and a judgment lien on other property owned by the property owner.

If the lender records a judgment lien on a separate property, it would subsequently be foreclosed as any other lien or mortgage.
In Connecticut we have both strict foreclosures and foreclosures by sale.
If the property owner has no equity in the property, title to the property will pass to the lender in a strict foreclosure.

If property owner has equity in the property he has the right to request a foreclosure by sale rather than a strict foreclosure. If the U S Government is a party to the foreclosure action,  foreclosure must be by sale.

Hope this helps. I am not certain if this answers your question