Steps in the Foreclosure Process for Ohio

If a debtor fails to pay his mortgage, the lender has the right to foreclose on the mortgage. Foreclosure involves suing not only the debtor, but all other persons who have an interest in the property, such as lienholders, tenants and property owners. In Ohio, the county sheriff handles foreclosure sales once the foreclosure has gone through the court system.

Instructions

1. Order a title report. The title report lists all lienholders and persons with financial interest in the property. You must include all interested parties in the foreclosure proceedings to ensure that nobody continues to have an interest in the property after you foreclose.

2. Prepare and file a complaint. Name the debtor and all lienholders as defendants on your complaint paperwork. If the debtor is married, include his spouse, even if she is not listed as a mortgage holder to avoid the property being passed on to the spouse after foreclosure. Include a claim for the money the debtor owes you as well as a request for foreclosure so the court can enter a judgment against the defendant.

3. Serve notice to each defendant. Make a copy of the notice and give it to the court clerk to serve to the defendant or ask your attorney to do so.

4. Wait 28 days. If the defendants do not respond to your complaint, you win a judgment by default and can proceed with the foreclosure. If the defendants do respond, the court sets a hearing date. You must show proof to the court that the defendants entered a mortgage and failed to pay it as agreed. Unless the defendants can prove they are not in default or not responsible for the mortgage, the court will side with you and enter a judgment against the defendants.

5. Obtain three independent appraisals of the property to determine a selling price. Give the appraisal reports to the sheriff so he may sell the property for you.

6. Advertise the sale in the legal section of your local newspaper. You must advertise the sale once a week for three consecutive weeks and must begin 30 days before the sale takes place.

7. Obtain a writ of execution from the sheriff after the sale. This paper states that the property has been sold and lists the sale price. Bring the writ of execution to the county courthouse for the court to evaluate.

8. Wait for the court to issue a confirmation. During the confirmation period, the debtor may buy the property back by paying the full balance of the loan. If this happens, the debtor may keep the house. Otherwise, the court confirms the purchase and issues a deed to the purchaser.

References

• Foreclosure: Ohio Foreclosure Laws
• Ohio Practical Business Law: Ohio Foreclosure Proceedings Roadmap