Ohio Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instrument: Mortgage
- Timeline: Usually 150 days
- Right of Redemption1: Yes
- Deficiency Judgments2 Allowed: Yes
Lenders in the state of Ohio may foreclose on a mortgage in default using a judicial foreclosure process. In Ohio, the standard mortgage document allows 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.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property. This type of process is generally used when no power of sale is present in the mortgage or deed of trust. A power of sale is a clause found in a deed of trust or mortgage that authorizes the sale or transfer of land as outlined by the terms of that clause.
An appraisal of the property is required and called for by the court-appointed officer conducting the sale. Three (3) unbiased appraisal estimate are gathered and filed with the court clerk. The property must be offered for sale at a price of not less than two-thirds (2/3) of the appraised value.
Notice of the sale must be published once a week for three (3) successive weeks in a newspaper in the county where the property is located. The sale is conducted at the courthouse by the sheriff and sold to the highest bidder.
The borrower has the right to redeem by paying the amount of the judgment plus costs and interest up until the point the sale is confirmed. Lenders may obtain a deficiency judgment which is void two (2) years after the foreclosure sale is confirmed. If the debtor signs an agreement to postpone enforcement past that two (2) year period, then enforcement can continue past that two year period.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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