Mortgage lenders can seek foreclosure when an Ohio borrower fails to make payments as agreed. The lender must adhere to state and federal laws to ensure a valid foreclosure process.
Review the guidelines that apply to residential foreclosure in Ohio.
Preparing for foreclosure
Lenders can foreclose once a borrower is at least 120 days late with the mortgage payments. The bank or mortgage broker does not have to provide notice of a pending foreclosure to the buyer unless the loan documents contain either a time to cure or notice of default clause.
Filing legal documents
Ohio has a court-based foreclosure process, which starts when the lender files a legal complaint. The borrower must receive official service of the foreclosure complaint as well as a summons that provides the full details about the court case. Usually, the borrower has 28 days to respond to the lawsuit. The court may issue a default judgment in favor of the lender when the borrower ignores the summons.
Completing the process
When the lender has a valid claim, the court typically issues a summary judgment on its behalf. At this point, the bank can seize and sell the home. Otherwise, the court orders a trial where the lender and borrower must each present evidence supporting their cases.
Unlike many states, Ohio does not give mortgage borrowers in default the automatic right to bring the mortgage current to avoid foreclosure. However, the borrower may retain this right if it appears in the loan agreement. He or she may also redeem (repurchase) the home until the foreclosure sale under Ohio law.