Ohio Laws Regarding Foreclosure

Ohio only allows for judicial foreclosures.

The foreclosure process in every state requires lenders to comply with specific procedures and rules. Ohio's foreclosure laws require lenders to file suit against the homeowner, a process known as judicial foreclosure. These laws are complicated and subject to change, so talk to an Ohio attorney if you need legal advice about your foreclosure situation.

Foreclosure Requirements

Unlike some states, Ohio only allows for judicial foreclosures. A judicial foreclosure is one in which the creditor sues the mortgage holder in court. The creditor must then show that the mortgage holder defaulted on the terms of the mortgage. If the creditor proves default, the court then issues a judgment and grants it the right to foreclose on the property and resell it.

Time Frame

Judicial foreclosures must meet the same procedural requirements of any lawsuit. Ohio's laws of civil procedure, for example, require that the creditor notify the mortgage holder that the lawsuit has been filed. This is known as service of process and, depending on how this takes place, can take different lengths of time. In general, Ohio foreclosures take six to 18 months, according to the Ohio Attorney General's Office.

Right of Redemption

Mortgage holders facing foreclosures in Ohio can still avoid having their home sold even if the creditor wins a judgment. Ohio law allows debtors the right to redeem the property, meaning they can stop the sale and keep their home, if they act in time. Ohio Revised Code section 2329.33 states that a debtor can redeem the property by paying the remaining balance of the loan to the clerk of the court in the county where the foreclosure was filed. The debtor must also pay any fees, costs and interest associated with the debt.

Tenant's Rights

Renters cannot have a foreclosure action filed against them and have the right to live in the residence until the lease term is over, says the Attorney General's Office. However, if the lease is for a period of 90 days or less, the new owner can provide written notice to the tenants and order them to vacate no earlier than 90 days after receiving the notice.

References

• Ohio Attrney General: Foreclosure FAQs
• Lawriter: Ohio Revised Code section 2329.33
• Ohio Rules of Civil Procedure: Rule 4. Process: Summons