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Summary:
| Judicial Foreclosure |
Yes |
| Non-Judicial Foreclosure |
No |
| Security Instruments |
Mortgage |
| Right of Redemption |
Yes |
| Deficiency Judgments |
Yes |
| Time Frame |
Usually 150 days |
Judicial foreclosure is the only foreclosure process used in Ohio. The lender must sue the borrower in court to obtain a judgment of foreclosure. The defendant borrower is served with a complaint and summons by mail, or by publication if the borrower cannot be located. The borrower then has 20 days to file an answer. If no answer is received, a default judgment is entered.
Prior to the scheduled foreclosure date, three disinterested freeholders in the county in which the property is located must appraise the property. The appraised value must then be filed with the county clerk. The property must be offered for sale at a minimum price of no less than two thirds of the appraised value.
Prior to the sale, the notice of sale must be published weekly for three consecutive weeks in a newspaper of general circulation in the county in which the property is located.
The county sheriff will conduct the sale, and the property sold to the highest bidder. The borrower has a statutory right of redemption until the sale is confirmed by the court Redemption requires payment of the amount of the judgment, court costs, and interest.
Deficiency judgments are allowed. There is a two-year statute of limitations to collect in the event the judgment was rendered prior to confirmation of the sale, and the property consists of two units or less.
Links:
Predatory Lending Act
- § 1349.25. Definitions
- Advance-Fee Mortgage Foreclosure Scam
Law which regulates fair practices towards a consumer.
Examples of what has been viewed as predatory lending practices in Ohio:
"Loan flipping" - frequent refinancing of a loan to generate fees for the lender without any economic benefit to the borrower.
"Equity stripping" - deceiving a homeowner into entering a loan agreement beyond his or her ability to pay back the loan. This may result in the borrower's loss of the home.
"Bait and switch" - the broker/lender's advertising of rates and fees that suddenly rise just as the borrower arrives at the closing;
"Inflated appraisals" - falsely inflated property valuations that burden borrowers with larger and higher-rate loans. The borrower cannot refinance the loan later at a more manageable rate because the true value of the home is less than the amount of the loan.
- Understanding the Process of the Sheriff's Sale
Bill Status:
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