Ohio Foreclosure Law and Procedure
In Ohio, the method of foreclosure is judicial and the rights of redemption and deficiency judgments are allowed.
Foreclosure actions in Ohio are commenced with the filing of a complaint, naming as Defendants all parties having ownership interest, lien or other encumbrance on the property. Service of the summons is perfected generally by mail or by publication if a party cannot be located. Unless the mortgagor files an answer to the complaint within 28 days after service of the summons, a motion for default judgment can be filed. Otherwise, the case will proceed based upon a motion for summary judgment or trial. A foreclosure decree setting forth the rights of the various parties is submitted for approval by the court. Once the foreclosure decree is approved and filed, an order of sale is issued to the Sheriff, who then retains 3 fee holders to act as appraisers.
When land is to be sold under a foreclosure order, the officer conducting the sale shall call upon three disinterested freeholders of the county to give an estimate of the value of the property. A copy of the appraised value must be left with the court clerk. The property must forthwith be offered for sale at a price of not less than two-thirds of the appraisement.
The Sheriff will schedule the Sheriff's Sale for an auction, and publish a notice of the Sale for at least 30 days prior to the Sale date in a newspaper of general circulation in the county in which the property is located. The minimum bid at the Sheriff's Sale is 2/3 of the Sheriff's appraisal proceedings. The sheriff will conduct the sale at the courthouse and the property will be sold to the highest bidder. Unless there is an irregularity, the court files an order confirming the Sheriff's sale. The mortgagor has a statutory right to redeem the property by paying the balance due together with the court costs, only until the filing of the order confirming the Sale. Uncontested foreclosures generally take 6-10 months.
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.
Evictions can be accomplished through a writ of possession through the Sheriff, in the event the occupants were named as parties in the foreclosure action and served with a summons. Otherwise, possession may only be recovered through a municipal court eviction action. In ether cases, the process takes approximately 6 weeks until the move out.
Deficiency judgments are fully enforceable, but there is a 2 year statute of limitations to collect in the event judgment was rendered prior to confirmation the Sheriff's sale and the property was a dwelling with 2 units or less. However, the enforcement may continue if the debtor signs an agreement to postpone the enforcement past two years.
Ohio Foreclosure Redemption
The debtor can redeem by paying the amount of the judgment plus costs and interest up until the confirmation of the sale, but not afterward.
Judicial Foreclosure Available: Yes
Non-judicial Foreclosure Available: No
The Ohio standard mortgage provides for a conditional transfer of title to the lender. If the borrower pays the principal and interest; performs the obligations of the mortgage, including payment of taxes, assessments and hazard insurance and does not commit waste, then the borrower will obtain full title at the end of the mortgage term. Ohio mortgages must be foreclosed by court action.
Ohio Foreclosure Lawsuit
The lender must sue the borrower in the county where the property is located. The lender must ask the court to foreclose the mortgage and order a sale of the property.
Ohio Foreclosure Sale Procedures
Appraisement
When land is to be sold under a foreclosure order, the officer conducting the sale shall call upon three disinterested freeholders of the county to give an estimate of the value of the property. A copy of the appraised value must be left with the court clerk. The property must forthwith be offered for sale at a price of not less than two-thirds of the appraisement.
Advertising
The land will not be sold until the officer handling the foreclosure gives public notice of the sale by advertising the time and place of the sale at least 30 days in advance of the sale. The advertisements will be sufficient if they are published once a week for three consecutive weeks before the day of the sale, with each ad on the same day of the week.
Method of Sale
The sheriff handles foreclosure sales in Ohio. The officer will sell to the highest bidder at the time and place indicated in the advertised notice. The sale must take place at the courthouse. If the bidder fails to pay the price, the court "shall punish as for contempt any purchaser of real property who fails to pay the purchase money therefore." If there is no sale for lack of bidders, then the court may order a new appraisement and order the sale for one-third in cash and the balance later.
Confirmation
The sheriff returns the writ of execution indicating that a sale was made to the court, which upon examination of the sale proceedings to make sure they were in conformity with the law and with the court orders, enters into its records a confirmation of the legality of the sale and directs the officer who made the sale to create and deliver the purchaser a deed for the property.
Special Procedures
If the property is in danger of being damaged the court may appoint a receiver to take charge of it.
Ohio Foreclosure Deficiency
A deficiency judgment may be obtained by the lender along with the order commanding a foreclosure sale. The deficiency is void two years after the foreclosure sale is confirmed. However, the enforcement may continue if the debtor signs an agreement to postpone the enforcement past two years.
Redemption
The debtor can redeem by paying the amount of the judgment plus costs and interest up until the confirmation of the sale, but not afterward.
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