What is Foreclosure?
In most states, when you buy a home there are actually two parties on the buying side: you (the mortgagor) and the lender (the mortgagee). You own the home, but the mortgagee holds a lien on the property for as long as the mortgage has an outstanding balance. The lien gives the lender the right to assume ownership of the property should you fall behind on payments. That process by which the lender assumes ownership is called foreclosure.
In Ohio, all foreclosures are handled through the courts. The typical timeline for an Ohio foreclosure is seven months.
To begin a court foreclosure in Ohio, the appropriate court
documents are filed in a local court. The borrower is then given notice of the
court filing, usually by certified mail, regular mail, or personal service. If a
borrower cannot be located, the lender may publish the notice of the court
filing. After the notice has been properly delivered or published, the borrower
has 28 days to respond or the court can find them in default. After the court
makes its decision, the county clerk issues an order of sale to the sheriff.
The court allows borrowers to pay the debt amount within a certain time. If the
borrower fails to pay, the foreclosure process continues.
Before the foreclosure sale, the sheriff
must obtain three appraisals and publish an ad in a local newspaper for three
weeks. The sheriff then conducts a public auction at the courthouse. The sale
price must be at least two thirds of the appraised value, and the property is
sold to the highest bidder. After the sale, the court reviews and files an order
confirming the sheriff's sale. The sheriff prepares and issues a deed
transferring ownership to the winning bidder.
The borrower has a right to redeem the property at any time before the sale is
confirmed by paying the balance owed and court costs.
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instrument: Mortgage
- Timeline: Typically 150 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In Ohio, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.
Judicial Foreclosure
Generally, in judicial foreclosure, a court decrees the amount of the borrowers debt and gives him or her a short time to pay. If the borrower fails to pay within that time, the clerk of the court then advertises the property for sale.
At some point prior to the scheduled date of foreclosure, an appraisal of the property must be made by three disinterested freeholders of the county. A copy of the appraised value must be filed with the court clerk and the property must be offered for sale at a price of not less than two-thirds of said value.
The sale may not take place until the notice of sale has been published once a week for three (3) consecutive weeks in a
newspaper of general circulation in the county in which the property is located. The sheriff will conduct the sale at the courthouse and the property will be sold to the highest bidder.
Lender's may obtain a deficiency judgment and the borrower may redeem the property at any time before the court confirms the foreclosure sale by paying the amount of the judgment, plus costs and interest.
More information on Ohio foreclosure laws.
www.columbusohioreo.com www.bobpritchard.org
As Always.... The Quality Choice
Bob
Pritchard, ABR, SRES
Coldwell Banker
King Thompson
614-404-8291
--
-Accredited
Buyer Representative
-
-Seniors
Real Estate Specialist®
Messenger
bpcolumbus@hotmail.com
email: bob@columbusohioreo.com
Equal
Housing Opportunity ..
REALTOR® -- A registered
collective trademark that identifies a real estate professional
who is a member of the National
Association of REALTORS® and subscribes to its strict Code
of Ethics. Each local board of REALTORS® is responsible
for enforcing the Code of Ethics. Inquiries regarding the
Code of Ethics should be directed to the board in which a
REALTOR® holds membership.
All information presented is subject to
errors, omissions and revisions and is not warranted.
"This is not intended to solicit property currently listed
with another REALTOR."
Independently Owned and Operated By NRT
Incorporated
About Coldwell Banker King Thompson
King Thompson and his
brother Ben, began business as the original
developers of Upper Arlington and created a real
estate company that lives on today as Coldwell
Banker King Thompson. Since 1912, the company they
created has grown as Ohio's capitol city has
grown. Today, Coldwell Banker King Thompson is the
premier real estate company serving the central
Ohio area.
As part of NRT,
Inc., the nation's largest and most successful
residential real estate brokerage, the traditions
of innovation and customer service are second to
none. Coldwell Banker King Thompson's 800+ sales
associates are your neighbors, living in and
serving their communities with the highest quality
service that has earned us the reputation as The
Quality Choice when it comes to real estate in
central Ohio.
NRT Incorporated, a subsidiary of Cendant Corporation (NYSE: CD), is the nation's largest residential real estate brokerage company. NRT ( www.nrtinc.com ) With more than 1,000 offices and 62,000 sales associates operating in over 35 major metropolitan areas, NRT posted a real estate record of $204 billion in closed sales volume in 2004. For more information, visit www.kingthompson.com.
