A property enters pre-foreclosure after a default occurs on a loan that is secured by the property and the lender files a default notice or lis pendens against the borrower/owner.
You may have received a Notice of Default and not sure of what to do -
During this pre-foreclosure period, the homeowner may be able to stop the foreclosure by paying off what is owed or by selling the property (possible short sale). If the owner does nothing to stop the foreclosure, the property will be sold at a public auction at the end of the pre-foreclosure period. The length of the pre-foreclosure period is determined by state law.
Foreclosure is a legal process that allows a lender/bank to sell or take possession of a property due to non-payment of a loan that is secured by that property.
Quick Facts On Ohio Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instrument: Mortgage
- Timeline: Typically 150 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In Ohio, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.
Judicial Foreclosure
Generally, in judicial foreclosure, a court decrees the amount of the borrowers debt and gives him or her a short time to pay. If the borrower fails to pay within that time, the clerk of the court then advertises the property for sale.
At some point prior to the scheduled date of foreclosure, an appraisal of the property must be made by three disinterested freeholders of the county. A copy of the appraised value must be filed with the court clerk and the property must be offered for sale at a price of not less than two-thirds of said value.
The sale may not take place until the notice of sale has been published once a week for three (3) consecutive weeks in a newspaper of general circulation in the county in which the property is located. The sheriff will conduct the sale at the courthouse and the property will be sold to the highest bidder.
Lender's may obtain a deficiency judgment and the borrower may redeem the property at any time before the court confirms the foreclosure sale by paying the amount of the judgment, plus costs and interest.
Ohio foreclosures sold for an average discount of nearly 45 percent in the third quarter, the biggest discount percentage of any state and up from an average discount of 42 percent in the previous quarter. Ohio pre-foreclosures sold for an average discount of nearly 21 percent, and Ohio REOs sold for an average discount of nearly 51 percent.
Comments(3)