QUESTIONS TO OHIO’S NEW FORECLOSURE LAWS
Will the sheriff still conduct judicial sales?
The county sheriff will still handle judicial in a vast majority of cases. However, the foreclosing lender, such as a bank, can ask the court to appoint a private selling officer (PSO) to market and sell the property instead. The PSO must be a licensed auctioneer and real estate broker/salesperson.
Will judicial sales still take place at the courthouse?
The law requires a single, statewide auction management system to be implemented. For the first five years of the new management system, individual counties can choose to hold sheriff’s sales at the courthouse or to sell residential properties through Internet auctions. If an individual county decides to hold Internet auctions, the county sheriff must give notice similar to what is required for a sheriff’s sale. This includes notice of the auction’s start date, the minimum amount of time the auction will last (no less than 7 days), the website address of the Internet sale, and the required deposit and costs. After the management system has been in place for five years, there will be no more in-person sheriff’s sales at the courthouse, and all judicial sales of residential property must be completed through internet auctions managed by individual county’s sheriff departments.
What happens if there is a judicial sale, but nobody buys the property?
The county sheriff to set two dates for the sale of residential property. The court sets the first sale date and lists a second sale date in case the original sale is “no bid, no sale.” The second sale date must be between seven and 30 days from the date of the initial sale. If the residential property goes to the second sale, there is no minimum bid requirement. This provides a greater chance for the property to be sold, rather than having to use the original two-thirds sheriff’s appraised value that was used for the first sale date.