Foreclosure process in Ohio: steps, timeline and your rights

Judicial or non-judicial?

Judicial. The lender sues in the county court of common pleas, the court orders a sale, and the county sheriff or another selling officer runs it. R.C. 2323.07 places the sale under the court’s order, and Chapter 2329 sets the sale rules.

The steps, in order

1. Missed payments. Under federal servicing rules, “except in rare cases,” your servicer cannot start foreclosure until you are at least 120 days delinquent (Consumer Financial Protection Bureau).
2. Complaint and service. The lender files a complaint in the court of common pleas. The Attorney General notes that a certified letter from the clerk of courts is probably a foreclosure action. Open it.
3. Your answer. You have 28 days to file an answer, even while you talk with your lender. The Attorney General warns that failing to answer “will result in the loss of your home.” An answer can be a written legal document or a simple letter.
4. Judgment and order of sale. The court decides the case and, if the lender wins, orders the property sold.
5. Appraisal and notice. Property sold on execution is appraised (R.C. 2329.20 refers to R.C. 2329.17). The party seeking the sale must serve written notice on the other parties, and the selling officer must publish public notice once a week for at least three consecutive weeks before the sale (R.C. 2329.26).
6. Sale. In general, a tract cannot sell for less than two-thirds of its appraised value (R.C. 2329.20). For a residential mortgage foreclosure, if the home does not sell at the first auction, a second auction is held 7 to 30 days later with no minimum bid (R.C. 2329.52(B)).
7. Deposit. A buyer other than the lender must pay a deposit set by the appraised value: $2,000 up to $10,000; $5,000 from over $10,000 to $200,000; $10,000 over $200,000. The lender-buyer pays none (R.C. 2329.211).
8. Confirmation. The court checks the sale and, if it was lawful, confirms it within 30 days of the return of the writ. The buyer pays the balance within 30 days after confirmation, and the deed is recorded within 14 days after that (R.C. 2329.31).

Timeline

Right of redemption

Before the court confirms the sale, the debtor may redeem the property by depositing with the clerk the amount of the judgment, all costs, and interest at 8% a year on the purchase money from the day of sale to the day of the deposit. The court then sets the sale aside (R.C. 2329.33). The right ends at confirmation. We found no Ohio rule that gives a borrower a redemption period after confirmation.

Deficiency judgments

If the sale does not cover what you owe, the lender can seek the difference. For a mortgage on a home or farm dwelling of not more than two families, a money judgment becomes unenforceable as to any deficiency two years after the court confirms the sale. Actions started within those two years are not affected, and the debtor can waive the protection only by a written instrument filed with the clerk within the two years (R.C. 2329.08).

Separately, the general limit for an action on a written contract is six years (R.C. 2305.06). How the two limits interact in your case is a question for an Ohio attorney.

Help for homeowners in default

• Call your servicer and ask for the loss mitigation department. The Attorney General lists forbearance, repayment plans, refinancing, modification, short sale and deed in lieu among the options.
• Apply early. The CFPB advises that your servicer should get your complete application more than 37 days before a scheduled sale.
• Ask for mediation. The Supreme Court of Ohio says mediation is a voluntary, neutral process that can happen until the sale is confirmed. It does not pause the case or count as an answer. Availability varies by court, so ask your local common pleas court.
• Save the Dream Ohio. The Attorney General lists the hotline at (888) 404-4674 (7 a.m. to 7 p.m., Monday to Friday) for referrals to free housing counseling and legal help. The Ohio Housing Finance Agency has said funding for future mortgage payments was exhausted and that delinquent-payment aid depends on available funds, so check ohiohome.org for what is open now.
• Avoid paid rescue offers. The Attorney General says never pay for foreclosure prevention services and warns against signing over your deed to an investor.
• Tenants. Residents of a foreclosed home may stay until they get at least 90 days’ notice to vacate, and a tenant with a current lease may stay until it ends unless the buyer will live there (Ohio Attorney General).

If you are buying a foreclosed home, the seller disclosure form does not apply to foreclosure sales (Ohio seller disclosure rules), so budget for an inspection. See also home buying steps.