Ohio Foreclosure Laws

Learn about the foreclosure laws in Ohio. Research the foreclosure process in Ohio to understand how it works and the various stages of default. How long does foreclosure take in Ohio? What are the foreclosure consequences in Ohio? Is Ohio a judicial or non-judicial foreclosure law state? Find out the answers to these questions and many more with the foreclosure information and foreclosure laws in Ohio below.


Questions
How are mortgage liens treated in Ohio?
How are Ohio mortgages foreclosed?
What are the legal instruments that establish a Ohio mortgage?
How long does it take to foreclose a property in Ohio?
Is there a right of redemption in Ohio?
Are deficiency judgments permitted in Ohio?
What statutes govern Ohio foreclosures?

Answers

How are mortgage liens treated in Ohio?

Ohio is known as alien theory state where the property acts as security for the underlying loan. The document that places the lien on the property is called amortgage. Non-judicial foreclosure is not available in Ohio.

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How are Ohio mortgages foreclosed?

In Ohio, thelenders go to court in what is known as ajudicial foreclosure proceeding where the court must issue a final judgment of foreclosure. The property is then sold as part of a publicly noticed sale. The court with jurisdiction over a foreclosure is known as thecounty court. A complaint is filed in county court along with what is known alis pendens. A lis pendens is a recorded document that provides public notice that the property is being foreclosed upon.

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What are the legal instruments that establish an Ohio mortgage?

The documents are known as themortgage,note, and in a commercial transaction, asecurity agreement. Sometimes the mortgage document is combined with the security agreement.  Amortgage is filed to evidence the underlying debt and terms of repayment, which is set forth in thenote.

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How long does it take to foreclose a property in Ohio?

Depending on the court schedule, it usually takes approximately 150-180 days to effectuate an uncontested foreclosure. This process may be delayed if the borrower contests the action, seeks delays and adjournments of hearings, or files forbankruptcy.


In order to effectuate a foreclosure in Ohio, the following procedures must be followed:

  1. Aforeclosure complaint is filed in county court where the defendant has 28 days to file an answer otherwise a default judgment is entered. If an Answer is filed the case is adjudicated by summary judgment or trial. Once adjudicated a foreclosure decree is entered and the sheriff is directed to sell the property by foreclosure sale.
  2. Three disinterested freeholders must provide an appraisal or estimate of the value of the property being foreclosed. The property cannot be offered for less than 2/3 of the appraisal or appraisement as it is commonly known.
  3. The foreclosure sale must be advertised thirty (30) days in advance of the sale and such advertisement must occur once per week for three (3) consecutive weeks before the sale.
  4. The Sheriff handles foreclosure sales in Ohio and these sales take place at the county courthouse. After the sale the sheriff will return awrit of execution indicating the sale has taken place and the court will determine if the sale has been undertaken legally which is called aconfirmation. Once aconfirmation takes place any right of redemption is extinguished and a deed is issued to the purchaser.

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Is there a right of redemption in Ohio?

Ohio has astatutory right of redemption, which allows a party whose property has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs. There is a time limit to undertake such redemption which must occur beforeconfirmation of the of the foreclosure sale by the county court.

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Are deficiency judgments permitted in Ohio?

Yes. Adeficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures. This means that the borrower still owes the lender for the difference between what the property sold for at auction and the amount of the original loan. There is a two (2) year limit on the enforceability of any deficiency judgment unless the borrower agrees in writing to extend the time to enforce the same.

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What statutes govern Ohio foreclosures?

The laws that govern Ohio foreclosures are found in §2323.07 of Ohio Revised Code.

http://onlinedocs.andersonpublishing.com


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