Ohio Foreclosure Laws

Expected Timeline: Five to seven months
Security Instrument: Mortgage
Type of Process: Judicial
Protections for Servicemembers: Ohio Rev. Code Ann. § 5919.29, 5923.12
Time to Respond: Homeowners have twenty to thirty days to respond to the foreclosure lawsuit. After judgment has been entered for foreclosure, homeowners must be served with a seven day notice of sale. Notice of sale must be published within 30 days of sale date.
Reinstatement Period: None.
Protections for High-Cost Mortgages: None.
Redemption Period: Redemption period lasts until court confirms sheriff sale.
Eviction Process: New owner will have to initiate lawsuit in court for eviction order. This process may take between two weeks and a month, depending on if homeowners respond to complaint.
Deficiency Judgments: Allowed.
Limits on Deficiency Judgments: Allowed but void after two years after sale date. The property can not be sold for less than 2/3 of its appraised market value.
Cash Exempted in Bankruptcy: $400 for single person, $800 for married couple.
State Statutes: Ohio Rev. Code Ann. § 2323.07, 2329.26, 5721.38

Ohio foreclosure law only allows for the Judicial Foreclosure process to be followed. The lender must sue the borrower in court in order to obtain a judgment of foreclosure. The borrower is served with a complaint and summons by mail. If the borrower can not be located, service of complaint and summons will be done by publication. The borrower may file an answer to the complaint within twenty (20) days. In the event the borrower does not file an answer or respond to the summons, a default judgment is entered against the borrower.

Three appraisals of the property must be conducted by separate disinterested freeholders in the county in which the property is located. These appraisals must be done before the sale date and the appraised value must be filed with the county clerk. The property must be offered for sale at a price not below two-thirds of the appraised value.

Notice of sale must be published for three (3) consecutive weeks in a generally circulated newspaper in the county in which the property is located.

The sale of the property is conducted by the sheriff of the county and is sold to the winning bidder. Until the sale is confirmed by the court, the borrower may redeem the property by paying the amount of the judgment, court costs, and interest.

The lender has the right to sue the borrower for a deficiency judgment in the event the property does not sell for an amount sufficient to pay the loan balance due plus costs. If the judgment was rendered before the sale is confirmed, and the property has two or fewer units, there is a two-year statute of limitations to collect on the deficiency judgment.

State Website: www.legislature.state.oh.us

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