Ohio Foreclosure Laws

In Ohio, all foreclosures must be pursued through the judicial system. The process begins when a lender files a suit (known as a Lis Pendens) against a borrower (homeowner) at the county court. The homeowner is then notified and typically given 28 days in which to respond. If the homeowner does not respond, or the court find sufficient evidence of the homeowner's default, the court may rule in favor of the lender and issue an order to the Sheriff to auction off the property in question in order to rectify the debt.

Prior to the foreclosure sale, the Sheriff must publish a Notice of Sale in a local weekly newspaper for at least three weeks. The Sheriff must also arrange for the property to be appraised by three different and disinterested individuals, and calculate the mean amount of their appraisal values.

The Sheriff is in charge of running the foreclosure auction. The opening bid may be no less than two thirds of the mean appraisal of the property's market value. After the auction, the property is awarded to the highest bidder, who must wait to have the sale confirmed by the court. Once the sale has been confirmed, the Sheriff issues the winning bidder a deed to the property.

The original homeowner retains the right to redemption by paying the default amount owed plus additional costs at any point between the sale and the court's confirmation. The lender may pursue a deficiency judgment if the sale price of the property does not match the original loan awarded to the homeowner.

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