Ohio Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: No
Security Instruments: Mortgage
Right of Redemption Period: Yes
Deficiency Judgments Allowed: Yes
Time Frame: 150
Public Notice: Complaint
Ohio is considered to be a lien theory state, which means that a borrower’s property serves as security for their loan. A title in Ohio is secured by a document called a mortgage. If the borrower defaults on their mortgage, they may have their property foreclosed. Ohio law allows for only judicial foreclosure methods to be used.
The borrower has a right of redemption (ability to reclaim their property by paying off their debt in full) until the court confirms the foreclosure sale. Lenders in Ohio are permitted to file for a deficiency judgment if the foreclosure is sold at auction for less than the amount of the default. The borrower will be responsible for paying the remaining balance if the deficiency judgment is granted. However, lenders have a two-year limit for collecting the sum if the deficiency judgment was obtained before the sale was confirmed. The two-year limit can only be valid if the property consists of two family units or less.
Types of Foreclosures Allowed in New Jersey
Only the judicial foreclosure method may be used in Ohio as per the state’s foreclosure laws. The judicial foreclosure process, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
To begin the process of foreclosure, the lender must sue the borrower in a court with jurisdiction over the county where the property is located. The court will then decree the amount of the borrower’s debt and will give the borrower some time to pay off their loan. If the borrower cannot pay it off, the property will be advertised for sale.
Before the foreclosure sale can take place, the property must be appraised by three (3) disinterested freeholders of the county where the property is located. A copy of the appraised value must then be filed with the court clerk. Once that happens, the property cannot be put up for sale for less than two-thirds of the appraised value.
The sale itself cannot occur until the notice of sale has been published in a county newspaper once a week for three (3) consecutive weeks. The county sheriff will conduct the sale at the courthouse and the highest bidder will claim the property.
Before the court confirms the sale, the borrower may reclaim their property by paying the amount of their default in addition to any other expenses. Lenders will also have a right to obtain a deficiency judgment against the borrower. There is a two-year limitation to collect if the judgment was entered prior to the confirmation of the foreclosure sale and if the property consists of two units or less.
Seeking Legal Help to Prevent Foreclosure in Ohio
With the current economic situation affecting the entire American population, many mortgagors that were previously able to pay their loans on time are now finding it difficult just to make ends meet. Although the idea of losing your home can be extremely frightening, there is still a way to fight for your property and stop the foreclosure process. If you have defaulted on your mortgage, contact an acclaimed Ohio foreclosure lawyer right away to prevent your home from being repossessed.
Foreclosure attorneys bend over backwards to protect your homeowner rights and to make sure you don’t lose your home. Your paralegal will try and work out a plan of action, such as mortgage modification, refinancing, or a temporary halt in payments, to present to your lender as an alternative to foreclosure. Since foreclosures are actually pretty expensive to execute, chances are that your lender will agree to your foreclosure lawyer’s proposal. No matter what the proposed plan, with a skilled and dedicated foreclosure attorney on your side, you can rest assured that your case will end with the best possible outcome.
Regardless of your reason for defaulting, be it because you experienced a pay cut at work, lost your job altogether, or are suffering with other personal matters, you have a right to fight for your home and protect it from being seized. Speak to a leading team of foreclosure lawyers in Ohio today to discuss all of your available options and get started on your case right away.