In most states, when you buy a home there are actually two parties on the buying side: you (the mortgagor) and the lender (the mortgagee). You own the home, but the mortgagee holds a lien on the property for as long as the mortgage has an outstanding balance. The lien gives the lender the right to assume ownership of the property should you fall behind on payments. That process by which the lender assumes ownership is called foreclosure.
The Process for Ohio
In Ohio, all foreclosures are handled through the courts. The typical timeline for an Ohio foreclosure is seven months.
Pre-foreclosure Period-
To begin a court foreclosure in Ohio, the appropriate court documents are filed in a local court. The borrower is then given notice of the court filing, usually by certified mail, regular mail, or personal service. If a borrower cannot be located, the lender may publish the notice of the court filing. After the notice has been properly delivered or published, the borrower has 28 days to respond or the court can find them in default. After the court makes its decision, the county clerk issues an order of sale to the sheriff.
The court allows borrowers to pay the debt amount within a certain time. If the borrower fails to pay, the foreclosure process continues.
Notice of Sale / Auction-
Before the foreclosure sale, the sheriff must obtain three appraisals and publish an ad in a local newspaper for three weeks. The sheriff then conducts a public auction at the courthouse. The sale price must be at least two thirds of the appraised value, and the property is sold to the highest bidder. After the sale, the court reviews and files an order confirming the sheriff's sale. The sheriff prepares and issues a deed transferring ownership to the winning bidder.
The borrower has a right to redeem the property at any time before the sale is confirmed by paying the balance owed and court costs. |
