Ohio performs its foreclosures judicially. Specifically the County Court of Common Pleas have jurisdiction for the filing of a foreclosure complaint. There are eleven (11) separate steps to the foreclosure process in Ohio. They are
- 1) Breach letter; 2) Complaint to foreclose; 3) Title Report 4) Judgment Decree; 5) Praecipe ( order of sale); 6) Appraisal by three disinterested freeholders 7) Newspaper Publication; 8) Foreclosure Sale; 9) Motion to Confirm the Sale; 10) Confirmation Hearing; 11) Sheriff’s Deed.
1.) Breach letter
The first step in the Ohio foreclosure process is for the lender to notify the homeowner by certified mail that he/she has breached the contractual terms of the promissory note and to notify the owner of its intention to foreclose on the home and seek a deficiency judgment. This letter will be forwarded to the homeowner prior to the filing of the complaint to foreclose. This is the end of the private information which we will only see if we are able to enter the home prior to an auction and purchase the property from the homeowner directly.
2) Complaint to Foreclose
The Complaint to Foreclose is just a lawsuit which is filed in the court where the property is located. The attorney prepares the complaint after a review of the file, performs a title search and has sent a breach letter to the homeowner. It recites the facts of the breach of contract by the homeowner. For instance the complaint will recite the amount of the original mortgage, the current amount that the homeowner is behind on the mortgage and will include all of the other parties of record.
3. Title Report
A list of all parties interested in the property.
4) Judgment Decree
Once the court has established that a judgment shall issue, they will enter into a judgment which will set out the amount of the debt due on the house, orders the foreclosure, marshals the liens, establishes the priority of payment and orders the property to be sold free of liens.
The judgment decree will contain the following:
- 1) a recital of the pleadings filed; 2) a finding that service has been made 3) a finding as to the lien for the real estate taxes; 4) a finding as to the validity of the mortgage and its right to foreclose; 5) finding as to the priorities of the liens; 6) order of sale to the sheriff.
5) Praecipe (order of sale)
This must be filed with the clerk within three days after the decree.
Ohio requires that the property be appraised by three separate impartial individuals and that the property cannot be purchased for less than two-thirds of the appraisal except when a junior lien is foreclosing.
7) NEWSPAPER PUBLICATION
The notice in the newspaper is required to have the following information contained therein:
1) The time and place of the sale.
2) The street address of the sale and description of the property.
8) Foreclosure Sale
The sale is then held in the courthouse at the county courthouse where the property is located. The high Bidder is required to deposit ten percent (10%) of the winning bid by certified check or cash with the sheriff. If the high bidder defaults on his obligations to make all payments within the prescribed time the high bidder will lose his/her deposit and the property will be re-advertised for sale.
9 Motion To CONFIRM The SALE
This simply is an order prepared by the Banks lawyer confirming the sale and the order of payment.
10) CONFIRMATION HEARING
The standards to confirm a sale are that if the judge finds that the sale was regular it will be confirmed. It is not subject to appeal unless there was an abuse of discretion.
11). Sheriffs Deed
After the confirmation hearing the winning bidder will be given a deed by the sheriff deed. frontgateconsulting.com/ [http://frontgateconsulting.com/]