OHIO FORECLOSURE REFORM IN PART SEEKS TO REDUCE BLIGHT

in News, Real Estate
An Ohio foreclosure reform law took effect on September 28, 2016, and is in part aimed at modernizing and streamlining the foreclosure process and reducing blight caused by abandoned and vacant properties.  The law authorizes the use of online sales and provides greater uniformity across all counties in Ohio.  Below are some of the highlights of the new law.

Now, even if a creditor does not possess the debt instrument or promissory note, it may enforce it if it demonstrates that it was the creditor authorized to enforce it when the debt instrument was lost.  This may also apply in certain circumstances where that creditor obtains such a debt instrument from a prior creditor.

In the past, a foreclosure sale could only be effected through a so-called sheriff’s sale through the county.  The new law provides the ability to obtain a private selling officer which can be authorized by the court or county sheriff to sell the real estate at a public auction.

Time limitations with regard to when appraisal has to be completed and foreclosure sale deed filed seek to make the foreclosure process move more expeditiously.

At the second auction residential property can be sold to the highest bidder regardless of the amount of the appraisal and the two-third minimum bid requirement.

The new law provides expedited procedures for the sale of properties demonstrated to be vacant and abandoned.

Overall the law seeks to create uniformity of foreclosure procedures across all counties in Ohio and fight the blight that has victimized so much of Ohio, especially since the crash of the real estate market during the recession.

If you have any questions about this topic, feel free to contact Dana Rose or your Weston Hurd attorney.

CONTACT INFORMATION

Dana A. Rose, Esq.
Weston Hurd LLP
The Tower at Erieview
 1301 East 9th Street, Suite 1900
Cleveland, Ohio 44114-1862
p: 216.687.3342; f: 216.621.8369