New Ohio Foreclosure Bill

[Timothy Murphy III]

Forwarded to me recently by a colleague, from the Ohio State Bar Association's listserv. Apparently the Ohio foreclosure process is about to change. The devil's always in the details and implementation but it sounds like the process should become much more streamlined going forward. The post I received follows and has been credited to a Thomas Book, Esq.

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Legislative Note

The legislative process has many unexpected twists and turns. A case in point is the OSBA foreclosure bill (HB 463). The bill was introduced several months ago and was methodically working its way through the legislature. Right before the summer recess, something magical happened and it was decided the foreclosure language had to pass right now.

Never one to look a gift horse in the mouth, I was delighted with the decision and the urgency. It came to pass that HB 390 would become the vehicle to get the foreclosure language into law. As the last act before the summer break, the amendments to HB 390 adding the foreclosure language were agreed to by the House and Senate. Barring an unexpected Kasich veto the foreclosure process in Ohio is about to change.

Here are a few highlights of the bill:

1. Creates an expedited foreclosure process for vacant and abandoned properties.
2. Adopts the Uniform Law Commission language concerning standing and the ability to sue for foreclosure when the note is lost or destroyed.
3. Establishes that a person is guilty of criminal mischief if he knowingly causes damage to the residential property after being served with a complaint in foreclosure.
4. Modifies how taxes will be prorated in foreclosure cases.
5. Allows, after court approval, the use of private selling officers in foreclosure actions. The aim is to avoid any backlog in the Sheriff’s office.
6. Creates an online auction site for foreclosed properties.
7. Modifies the appraisal and advertising process for subsequent sale attempts, while eliminating the 2/3rd minimum bid requirement on subsequent sale attempts.

The OSBA Real Property Section and the Banking, Commercial & Bankruptcy Law committee were instrumental in crafting the bill and assisting with its passage. Particularly, retired attorney Steve Buchenroth of Vorys, Sater, Seymour and Pease LLP.