What are the foreclosure rights for a homeowner in Ohio?

Forclosure rights in Ohio for the defaulting homeowner are extremely limited.  Once the foreclosure process gets started in Ohio it is almost certainly a “done deal.”  The homeowner needs to access bankrupcy legal representation quickly in Ohio if he is going to have any real chance at stopping the process.  The lender will begin by initiating judicial foreclosure process concerning the defaulted mortgage loan. 

Debtor Rights

• The court and not the lender will determine the amount of the borrower’s debt.
• The borrower will receive a short time to pay down the mortgage debt. 
• Before the foreclosure sale may take place three different appraisals of the property must be made by three different appraisers. 
• The clerk of court may not offer the property for sale at an amount below two thirds of the full appraised value based on the three appraisals.    

If the mortgage debt remains unpaid, and a bankruptcy protection petition has not been filed by the debtor, the clerk of court will advertize the property for sale.  A deficiency judgment against the borrower can result in a situation where the borrower may redeem his interest in the property only during the time period before the court acts to confirm the upcoming foreclosure sale.  Redeeming the borrower’s interest prior to confirmation of the foreclosure sale can only be accomplished by paying the amount of the deficiency judgment and the related court cost and interest on the judgment award.  The only good news for a homeowner in Ohio concerning a foreclosure action is that the defaulting borrower may be able to claim a homestead exemption protecting the entire value of marital property where only one spouse is responsible for the mortgage debt which is a rare financial situation at best.