What are the foreclosure laws in Ohio?

The laws for foreclosure in Ohio can be confusing.

Summary:

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.