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.
Foreclosure Procedures by State - Ohio Foreclosure Law - Ohio Foreclosure Law
Ohio Foreclosure Law
Sale of Lands
Deed
Remedies
Sheriffs Sales
Seized
Real Estate
Gov't/Police
Auctions
Foreclosure List
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