New Ohio law reforms Ohio foreclosure process

(Plain Press, July 2008) On June 11th, Ohio Governor Ted Strickland signed into law legislation designed to reform Ohio’s foreclosure process by simplifying the process of identifying a property owner after foreclosure.

The legislation sponsored by Representatives Mike Foley (D-Cleveland) and Louis Blessing (R-Cincinnati) would require sheriff’s departments, not the purchaser, to file the deed with the County Recorder’s Office and collect identifying information from people buying property at sheriff’s sales.

The legislation would assure that the owner of the property is recorded on the deed so Cleveland and other cities and neighborhood residents can hold the owner accountable for the condition of the property. It would also aid in the tracking of deed transfers. It has been the practice of a number of operators to leave the deed in the name of the person being foreclosed on, thus avoiding being held accountable for the condition of the property.

Provisions added to the legislation in the Senate would allow for courts to perform mediation and allow for the holding of an open house on vacated or abandoned properties – a move designed to boost sale prices and preserve neighboring property values.

Foley says the bill is important in helping to stem the tide of foreclosures in the state of Ohio, “It brings shady purchasers out of the shadows, and it protects neighborhoods from suffering the negative impact of vacant or abandoned properties.”

The legislation, Substitute House Bill 138 will become law 90 days from the date of the Governor’s signing the bill.

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