Unlike states such as California, Ohio chooses to go about foreclosure using the judicial process. With a judicial foreclosure this means that your home must be foreclosed on by court actions. The lender must file a lawsuit against the borrower and ask the court to foreclose on the defaulting mortgage and order a sale of the foreclosing property.
Below is a list of following procedures that must be followed in order for the foreclosure to take place.
- Once the borrower has become delinquent on their mortgage payments the lender will file a foreclosure complaint with the county court. At that time the borrower will have twenty-eight days to try an resolve the issue or else you will enter into a default judgement.
- If you do not happen to come up with an answer to resolve your issue within 28 days the court will issue the default judgement. At that time the county clerk will issue the home to be sold by sheriff sale.
- For the foreclosure to go into affect there must be at least three disinterested freeholders that will provide an estimated value or an appraisal of the home that is going into foreclosure. Once the value is decided the property cannot be sold for less than two-thirds of the current value.
- Once the court has decided the sale date for the foreclosure to take place it must be advertised in the local county newspaper for thirty days before the actual date of sale. This will be advertised at least one time per week for three consecutive weeks.
- The sale will take place in the county courthouse and be handled by the local Sheriff. Once the sale has taken place the Sheriff will provide a "write of execution" to prove that the sale has indeed gone through. At that time the county court will decide if the foreclosure has gone through legally, this is called a confirmation. There will be no right of redemption if the confirmation is received.
Foreclosure in Ohio typically takes about five to six months to fully process. But the foreclosure may take much longer to finish if the borrower tries to resolve the issue by applying for a loan modification, short sale, or even filing bankruptcy.