Foreclosure Laws in Ohio (OH)Topic: Foreclosure
Ohio is a judicial or in court only foreclosure state. This means that the bank must petition a judge to move forward to sell a house attached as security to mortgage in default to try and get the money owed that is not being paid. This means that the court decides how much a home owner in difficulty must pay. Is also sets a time frame, usually a fairly short one, in which the home owner needs to come up with that amount.
If the homeowner cannot pay that money during the allotted time, the clerk of the court must advertise the home for sale. Three different appraisals of the property are required to be conducted before the scheduled sale date. These appraisals must be performed by professionals who have no interest or other connection to the home being appraised. The minimum asking price, or the least amount it can be sold for must be no less than two thirds of the appraised value that has been sent to and filed with the court. The sale is held at the court house for the county in which the property is located. Prior to the scheduled sale date, an advertisement, announcing the sale date, time, place and terms of the auction for the home must be run in a local paper. This advertisement must be run at least once a week for three weeks consecutively in the weeks leading up tot the scheduled sale date, the paper in which the ad is to be run must name general circulation in the county win which the home is located. The county sheriff will officiate at the auction. The opening bid will be that two thirds value established by the three appraisals. The person offering the highest price will be awarded the property by the sheriff.
Lenders do have the right in Ohio to see a deficiency judgment. This means that if the bank feels that the money generated by the sheriff's sale has no other assets worth pursuing by the bank. Deficiency judgments are therefore rarely sought. The average amount of time for a foreclosure to run its full course in Ohio is 150 days. I could find no specifics on how the funds for the winning purchase are to be paid. Ohio foreclosure law does state the court will punish the winning bidder who fails to pay that bid by finding them in contempt of court. That sounds pretty severe. So, in Ohio make sure you can pay, if you are the highest bidder at the sale.
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Everyone has given you really great advcie so far. People think they can buy realestate and get rich! They forget that furnaces blow and roofs leak. You already have that experience as a property manager and that is a good start. The thing that no one tells you is that investing in real estate is a long term goal. Not get rich quick. Unless you have a lot of cash and can buy properties outright the profit starts real slow. With our current economic situation rents won't go up very fast. The idea of investing is after say 15- 20 years the investments start paying off. If you are smart about it you try to pay down the mortgages as fast as you can. Don't over leverage yourself or you will lose everything. You have to build your foundation with a strong base.You will work really hard for a long time for nothing. You will probably need to keep a regular job for a while. Some of these forclosures are really great. Even if purchased at 50% of value you won't recieve enough to quit your job. You need to have down payment money otherwise it takes money to make money. The current foreclosure market just froze up with all this bail out stuff. All I see is the short sale and foreclosure market drying right up. Good luck! Don't be foolish and know your local laws regarding tenants and landlords.
Got it! Thanks a lot again for hlepnig me out!
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