Bill Text: OH HB613 | 2013-2014 | 130th General Assembly | Introduced
Bill Title: To establish the Private Foreclosure Fast-Track Law.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-08-20 - To Judiciary [HB613 Detail]
Download: Ohio-2013-HB613-Introduced.html
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Representative Anielski
| To amend sections 2329.01, 2329.17, 2329.20, 2329.26, | 1 |
| 2329.27, and 2329.33 and to enact sections | 2 |
| 2330.01, 2330.02, 2330.03, 2330.04, 2330.041, | 3 |
| 2330.05, 2330.06, 2330.07, 2330.08, 2330.09, | 4 |
| 2330.10, 2330.11, and 2330.12 of the Revised Code | 5 |
| to establish the Private Foreclosure Fast-Track | 6 |
| Law. | 7 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
| Section 1. That sections 2329.01, 2329.17, 2329.20, 2329.26, | 8 |
| 2329.27, and 2329.33 be amended and sections 2330.01, 2330.02, | 9 |
| 2330.03, 2330.04, 2330.041, 2330.05, 2330.06, 2330.07, 2330.08, | 10 |
| 2330.09, 2330.10, 2330.11, and 2330.12 of the Revised Code be | 11 |
| enacted to read as follows: | 12 |
| Sec. 2329.01. | 13 |
| the Revised Code, lands and tenements, including vested legal | 14 |
| interests therein, permanent leasehold estates renewable forever, | 15 |
| and goods and chattels, not exempt by law, shall be subject to the | 16 |
| payment of debts, and liable to be taken on execution and sold as | 17 |
|
provided in sections 2329.02 to 2329.61 | 18 |
| Code. | 19 |
| Sec. 2329.17. (A) | 20 |
| of the Revised Code, when execution is levied upon lands and | 21 |
| tenements, the officer who makes the levy shall call an inquest of | 22 |
| three disinterested freeholders, residents of the county where the | 23 |
| lands taken in execution are situated, and administer to them an | 24 |
| oath impartially to appraise the property so levied upon, upon | 25 |
| actual view. They forthwith shall return to such officer, under | 26 |
| their hands, an estimate of the real value of the property in | 27 |
| money. | 28 |
| (B) The municipal corporation or township in which the real | 29 |
| property is situated may inspect prior to the judicial sale any | 30 |
| structures located on lands subject to a writ of execution. | 31 |
| Sec. 2329.20. | 32 |
| the Revised Code, no tract of land shall be sold for less than | 33 |
| two-thirds of the value returned in the inquest required by | 34 |
| section 2329.17 of the Revised Code; except that in all cases | 35 |
| where a junior mortgage or other junior lien is sought to be | 36 |
| enforced against real estate by an order, judgment, or decree of | 37 |
| court, subject to a prior lien thereon, and such prior lien, and | 38 |
| the claims or obligations secured thereby, are unaffected by such | 39 |
| order, judgment, or decree, the court making such order, judgment, | 40 |
| or decree, may determine the minimum amount for which such real | 41 |
| estate may be sold, such minimum amount to be not less than | 42 |
| two-thirds of the difference between the value of the real estate | 43 |
| appraised as provided in such section, and the amount remaining | 44 |
| unpaid on the claims or obligations secured by such prior lien. | 45 |
| Sec. 2329.26. (A) | 46 |
| of the Revised Code, lands and tenements taken in execution shall | 47 |
| not be sold until all of the following occur: | 48 |
| (1)(a) Except as otherwise provided in division (A)(1)(b) of | 49 |
| this section, the judgment creditor who seeks the sale of the | 50 |
| lands and tenements or the judgment creditor's attorney does both | 51 |
| of the following: | 52 |
| (i) Causes a written notice of the date, time, and place of | 53 |
| the sale to be served in accordance with divisions (A) and (B) of | 54 |
| Civil Rule 5 upon the judgment debtor and upon each other party to | 55 |
| the action in which the judgment giving rise to the execution was | 56 |
| rendered; | 57 |
| (ii) At least seven calendar days prior to the date of the | 58 |
| sale, files with the clerk of the court that rendered the judgment | 59 |
| giving rise to the execution a copy of the written notice | 60 |
| described in division (A)(1)(a)(i) of this section with proof of | 61 |
| service endorsed on the copy in the form described in division (D) | 62 |
| of Civil Rule 5. | 63 |
| (b) Service of the written notice described in division | 64 |
| (A)(1)(a)(i) of this section is not required to be made upon any | 65 |
| party who is in default for failure to appear in the action in | 66 |
| which the judgment giving rise to the execution was rendered. | 67 |
| (2) The officer taking the lands and tenements gives public | 68 |
| notice of the date, time, and place of the sale once a week for at | 69 |
| least three consecutive weeks before the day of sale by | 70 |
| advertisement in a newspaper of general circulation in the county. | 71 |
| The newspaper shall meet the requirements of section 7.12 of the | 72 |
| Revised Code. The court ordering the sale may designate in the | 73 |
| order of sale the newspaper in which this public notice shall be | 74 |
| published. | 75 |
| (3) The officer taking the lands and tenements shall collect | 76 |
| the purchaser's information required by section 2329.271 of the | 77 |
| Revised Code. | 78 |
| (B) A sale of lands and tenements taken in execution may be | 79 |
| set aside in accordance with division (A) or (B) of section | 80 |
| 2329.27 of the Revised Code. | 81 |
| Sec. 2329.27. (A) When the public notice required by | 82 |
| division (A)(2) of section 2329.26 of the Revised Code is made in | 83 |
| a newspaper published weekly, it is sufficient to insert it for | 84 |
| three consecutive weeks. If both a daily and weekly edition of the | 85 |
| paper are published and the circulation of the daily in the county | 86 |
| exceeds that of the weekly in the county, or if the lands and | 87 |
| tenements taken in execution are situated in a city, both a daily | 88 |
| and weekly edition of the paper are published, and the circulation | 89 |
| of the daily in that city exceeds the circulation of the weekly in | 90 |
| that city, it is sufficient to publish the public notice in the | 91 |
| daily once a week for three consecutive weeks before the day of | 92 |
| sale, each insertion to be on the same day of the week. The | 93 |
| expense of that publication in a daily shall not exceed the cost | 94 |
| of publishing it in a weekly. | 95 |
| (B)(1) | 96 |
| Revised Code and subject to divisions (B)(2) and (3) of this | 97 |
| section, all sales of lands and tenements taken in execution that | 98 |
| are made without compliance with the written notice requirements | 99 |
| of division (A)(1)(a) of section 2329.26 of the Revised Code, the | 100 |
| public notice requirements of division (A)(2) of that section, the | 101 |
| purchaser information requirements of section 2329.271 of the | 102 |
| Revised Code, and division (A) of this section shall be set aside, | 103 |
| on motion by any interested party, by the court to which the | 104 |
| execution is returnable. | 105 |
| (2) Proof of service endorsed upon a copy of the written | 106 |
| notice required by division (A)(1)(a) of section 2329.26 of the | 107 |
| Revised Code shall be conclusive evidence of the service of the | 108 |
| written notice in compliance with the requirements of that | 109 |
| division, unless a party files a motion to set aside the sale of | 110 |
| the lands and tenements pursuant to division (B)(1) of this | 111 |
| section and establishes by a preponderance of the evidence that | 112 |
| the proof of service is fraudulent. | 113 |
| (3) If the court to which the execution is returnable enters | 114 |
| its order confirming the sale of the lands and tenements, the | 115 |
| order shall have both of the following effects: | 116 |
| (a) The order shall be deemed to constitute a judicial | 117 |
| finding as follows: | 118 |
| (i) That the sale of the lands and tenements complied with | 119 |
| the written notice requirements of division (A)(1)(a) of section | 120 |
| 2329.26 of the Revised Code and the public notice requirements of | 121 |
| division (A)(2) of that section and division (A) of this section, | 122 |
| or that compliance of that nature did not occur but the failure to | 123 |
| give a written notice to a party entitled to notice under division | 124 |
| (A)(1)(a) of section 2329.26 of the Revised Code has not | 125 |
| prejudiced that party; | 126 |
| (ii) That all parties entitled to notice under division | 127 |
| (A)(1)(a) of section 2329.26 of the Revised Code received adequate | 128 |
| notice of the date, time, and place of the sale of the lands and | 129 |
| tenements; | 130 |
| (iii) That the purchaser has submitted the contact | 131 |
| information required by section 2329.271 of the Revised Code. | 132 |
| (b) The order bars the filing of any further motions to set | 133 |
| aside the sale of the lands and tenements. | 134 |
| Sec. 2329.33. | 135 |
| the Revised Code, in sales of real estate on execution or order of | 136 |
| sale, at any time before the confirmation thereof, the debtor may | 137 |
| redeem it from sale by depositing in the hands of the clerk of the | 138 |
| court of common pleas to which such execution or order is | 139 |
| returnable, the amount of the judgment or decree upon which such | 140 |
| lands were sold, with all costs, including poundage, and interest | 141 |
| at the rate of eight per cent per annum on the purchase money from | 142 |
| the day of sale to the time of such deposit, except where the | 143 |
| judgment creditor is the purchaser, the interest at such rate on | 144 |
|
the excess above | 145 |
| common pleas thereupon shall make an order setting aside such | 146 |
| sale, and apply the deposit to the payment of such judgment or | 147 |
| decree and costs, and award such interest to the purchaser, who | 148 |
| shall receive from the officer making the sale the purchase money | 149 |
|
paid by | 150 |
| section does not take away the power of the court to set aside | 151 |
| such sale for any reason for which it might have been set aside | 152 |
| prior to April 16, 1888. | 153 |
| Sec. 2330.01. As used in this chapter: | 154 |
| (A) "Agricultural property" means any tract, lot, or parcel | 155 |
| of land on the agricultural land tax list maintained under section | 156 |
| 5713.33 of the Revised Code. | 157 |
| (B) "Clerk" means the clerk of the court of common pleas of | 158 |
| the county in which the specified residential property is located, | 159 |
| the clerk of court of the municipal court in which the specified | 160 |
| residential property is located, or the clerk of courts of the | 161 |
| federal district court in which the specified residential property | 162 |
| is located, as applicable. | 163 |
| (C) "County land reutilization corporation" means a county | 164 |
| land reutilization corporation in good standing organized under | 165 |
| section 1724.04 of the Revised Code. | 166 |
| (D) "Court" means the court of common pleas, municipal court, | 167 |
| housing or environmental division of common pleas or municipal | 168 |
| court, or federal court having jurisdiction over the specified | 169 |
| residential property. | 170 |
| (E) "Designated law enforcement officer" means the sheriff or | 171 |
| the sheriff's authorized agent or representative of the county in | 172 |
| which the specified residential property is located, the bailiff | 173 |
| or the bailiff's authorized agent or representative of the | 174 |
| municipal court in which the specified residential property is | 175 |
| located, or the marshal or the marshal's authorized agent or | 176 |
| representative of the federal district in which the specified | 177 |
| residential property is located. | 178 |
| (F) "Electing subdivision" has the same meaning as in section | 179 |
| 5722.01 of the Revised Code. | 180 |
| (G) "Financial institution" means either of the following: | 181 |
| (1) A lender, bank, or other financial institution or its | 182 |
| successors or assigns that owns a residential mortgage as a | 183 |
| mortgagee and that is regularly engaged in the business of | 184 |
| underwriting and making loans secured by real property; | 185 |
| (2) A financial institution or its successors or assigns that | 186 |
| purchases mortgages from institutions described in division (G)(1) | 187 |
| of this section whether as an assignee of the financial | 188 |
| institution or a servicer or trustee for institutions described in | 189 |
| this division, including a servicer of mortgages or the | 190 |
| purchaser's successors and assigns. | 191 |
| (H) "Residential mortgage" means an obligation to pay a sum | 192 |
| of money to a financial institution as evidenced by a promissory | 193 |
| note that is secured by a first mortgage lien of a financial | 194 |
| institution upon a residential property. | 195 |
| (I) "Residential property" means unoccupied property located | 196 |
| within this state that serves as security for a residential | 197 |
| mortgage and consists of real property that is unimproved by any | 198 |
| building or structure or real property improved by a building or | 199 |
| structure comprised solely of four or fewer dwelling units that | 200 |
| are each intended for residential occupancy. | 201 |
| "Residential property" may include a residential condominium | 202 |
| unit owned by any person or entity, notwithstanding the number of | 203 |
| units in the structure of which the condominium is a part; a row | 204 |
| house, notwithstanding the number of units of which the row house | 205 |
| is a part; and a manufactured or mobile home that is subject to | 206 |
| real property taxes under section 4503.06 of the Revised Code. | 207 |
| (J) "Unoccupied property" means any of the following: | 208 |
| (1) Real property that is abandoned land as defined in | 209 |
| section 323.65 of the Revised Code; | 210 |
| (2) Real property on which no trade or business is actively | 211 |
| being conducted by the owner or another party occupying the | 212 |
| property pursuant to any lease or other legal authority; | 213 |
| (3) Real property that is uninhabited with no signs or active | 214 |
| indications that it is undergoing improvements as evidenced by an | 215 |
| unexpired building permit, an unexpired application for a building | 216 |
| permit, or other facts indicating the property is undergoing | 217 |
| ongoing improvements; | 218 |
| (4) Real property that is uninhabited and that contains one | 219 |
| or more buildings or structures that are unsecured; | 220 |
| (5) In the case of real property unimproved by any building | 221 |
| or structure, for which a visual inspection shows no exterior | 222 |
| indications that such unimproved property serves as an immediate | 223 |
| and active accessory use to an adjacent occupied property for such | 224 |
| purposes as lawful parking, ingress and egress, lawful storage, or | 225 |
| yard extension of an occupied property and that is not | 226 |
| agricultural property; | 227 |
| (6) Real property on which one or more utility connections, | 228 |
| including water, sewer, natural gas, or electric connections, are | 229 |
| no longer servicing the property or one or more of such utility | 230 |
| connections are not actively being billed by any utility provider | 231 |
| to the property; | 232 |
| (7) Real property on which one or more buildings or | 233 |
| structures on the property are boarded up or otherwise sealed in | 234 |
| order to prevent the property from becoming unsecured, or because | 235 |
| such boarding up or sealing was ordered by a governmental body | 236 |
| pursuant to its applicable municipal, county, state, or federal | 237 |
| nuisance authority; | 238 |
| (8) Real property that is condemned or otherwise declared a | 239 |
| nuisance for any reason by a governmental body. | 240 |
| (K) "Unsecured" means conditions that would permit entry into | 241 |
| a building or structure including, but not limited to, broken | 242 |
| windows, broken doors, or other indications that the building or | 243 |
| structure is open or vandalized. | 244 |
| Sec. 2330.02. (A) In lieu of initiating foreclosure | 245 |
| proceedings under Chapter 2329. or any other chapter of the | 246 |
| Revised Code against residential property that secures a | 247 |
| residential mortgage held by a financial institution, a financial | 248 |
| institution may bring an expedited foreclosure action against an | 249 |
| owner of a residential property as prescribed in this chapter. | 250 |
| Such expedited foreclosure proceedings may be pursued in the | 251 |
| courts of common pleas, municipal courts, and the federal district | 252 |
| courts in which the residential property is located and consistent | 253 |
| with their respective subject matter jurisdiction. | 254 |
| (B) By electing to pursue an action pursuant to this chapter, | 255 |
| the financial institution shall be required to abide by the | 256 |
| provisions of this chapter. Except as otherwise specifically | 257 |
| authorized in this chapter, an action commenced under this chapter | 258 |
| shall continue and conclude under this chapter. A financial | 259 |
| institution shall not be permitted to voluntarily dismiss or seek | 260 |
| to vacate a judgment, order of sale, writ of execution, sale, | 261 |
| transfer, or confirmation of the action except as provided in | 262 |
| division (B) of section 2330.04 of the Revised Code or upon | 263 |
| written motion in the court's sound discretion for good cause | 264 |
| shown by clear and convincing evidence. | 265 |
| Sec. 2330.03. A court may adopt local rules and case | 266 |
| management orders not inconsistent with this chapter for the | 267 |
| purpose of implementing, as necessary, the expedited foreclosure | 268 |
| of residential properties as prescribed under this chapter. If | 269 |
| during the pendency of any action brought under this chapter, the | 270 |
| court determines that the real property being foreclosed on is | 271 |
| not, or is no longer, residential property, then such action shall | 272 |
| not be dismissed, but shall be pursued in accordance with Chapter | 273 |
| 2329. of the Revised Code. The court may utilize the procedures | 274 |
| provided in Chapter 2329. of the Revised Code as the court finds | 275 |
| convenient or necessary to supplement the court's proceedings, | 276 |
| provided those procedures are not inconsistent with this chapter. | 277 |
| Sec. 2330.04. (A) An action filed under this chapter shall | 278 |
| be filed with the clerk in the same manner as in other civil | 279 |
| actions. The clerk shall provide summons and notice of complaint | 280 |
| accompanied by an affidavit prescribed in division (B)(3) of this | 281 |
| section and subsequent hearings as provided in this section, | 282 |
| maintain an official case file, docket all proceedings, and tax as | 283 |
| costs all necessary expenses in connection with the action. The | 284 |
| clerk may utilize the court's existing journal, case numbering | 285 |
| system, and general procedures, or may maintain a separate | 286 |
| journal, case numbering, or docketing index called the | 287 |
| "foreclosure fast-track" docket or such similar designation to | 288 |
| identify that filings under this chapter are intended to proceed | 289 |
| on an expedited basis. | 290 |
| (B) A financial institution acting as plaintiff may initiate | 291 |
| a foreclosure action under this chapter upon a residential | 292 |
| property by filing a complaint with the clerk in form similar to | 293 |
| pleading and caption forms provided in the Ohio and federal Rules | 294 |
| of Civil Procedure, as applicable. All of the following shall | 295 |
| accompany such complaint: | 296 |
| (1) The preliminary judicial report as required by section | 297 |
| 2329.191 of the Revised Code, which includes the name and address | 298 |
| of all parties having any interest of record in the property; | 299 |
| (2) A copy of the promissory note and the residential | 300 |
| mortgage secured by the residential property. If either the | 301 |
| promissory note or residential mortgage are not originals, then | 302 |
| the affiant of an affidavit described in division (B)(3) of this | 303 |
| section shall attest on personal knowledge that the promissory | 304 |
| note and residential mortgage are true and accurate copies of the | 305 |
| originals to the best of the affiant's good faith knowledge and | 306 |
| belief. | 307 |
| (3) One of the following: | 308 |
| (a) The affidavit described in division (H) of this section; | 309 |
| or | 310 |
| (b) An affidavit that adequately identifies the property and | 311 |
| in which both the plaintiff and the owners of record of the | 312 |
| property stipulate or otherwise agree that the property being | 313 |
| foreclosed upon is to be deemed residential property as defined in | 314 |
| section 2330.01 of the Revised Code. | 315 |
| (4) If the plaintiff requests that the residential property | 316 |
| be directly transferred to a county land reutilization corporation | 317 |
| or other electing subdivision upon the court's issuance of a | 318 |
| decree of foreclosure, an affidavit that is signed and notarized | 319 |
| by both the financial institution and the county land | 320 |
| reutilization corporation or other electing subdivision that | 321 |
| indicates that the financial institution and county land | 322 |
| reutilization corporation or other electing subdivision are in | 323 |
| agreement to the court's direct transfer of the residential | 324 |
| property to the county land reutilization corporation or other | 325 |
| electing subdivision. | 326 |
| The plaintiff may include other documents or information with | 327 |
| the complaint that the plaintiff asserts is relevant to the | 328 |
| proceeding. | 329 |
| If an affidavit described in division (B)(4) of this section | 330 |
| is not filed with the complaint, the plaintiff and the county land | 331 |
| reutilization corporation or electing subdivision may file the | 332 |
| affidavit not later than seven days prior to any final hearing. | 333 |
| The county land reutilization corporation or other electing | 334 |
| subdivision may unilaterally withdraw any consent to accept any | 335 |
| residential property by filing a supplemental signed and notarized | 336 |
| instrument revoking the consent. The supplemental instrument must | 337 |
| be filed not later than seven days prior to any final hearing. In | 338 |
| the event of such revocation, the plaintiff, by filing notice to | 339 |
| the court, may elect to proceed under this chapter or Chapter | 340 |
| 2329. of the Revised Code or may move for a dismissal of the | 341 |
| action. | 342 |
| (C) Upon the filing of a complaint under this chapter, the | 343 |
| clerk promptly shall serve notice of the summons, complaint, and | 344 |
| affidavit filed in accordance with division (B)(3) of this section | 345 |
| to the last known address of the record owner of the residential | 346 |
| property being foreclosed upon and the last known address of each | 347 |
| lienholder or other person having an interest of record identified | 348 |
| in the preliminary judicial report consistent with Civil Rule 4. | 349 |
| The notice of summons shall be included with the complaint and | 350 |
| prepared by the clerk in substantial form as prescribed in section | 351 |
| 2330.041 of the Revised Code. The notice of summons shall inform | 352 |
| the addressee of all of the following: | 353 |
| (1) That the financial institution alleges that the | 354 |
| residential mortgage on the residential property is in default and | 355 |
| that if so determined by the court all of the following may occur: | 356 |
| (a) The residential property shall be sold at public auction | 357 |
| or transferred directly to the financial institution, a county | 358 |
| land reutilization corporation, or other electing subdivision | 359 |
| without appraisal and without auction sale on a date and in a | 360 |
| manner as prescribed in this chapter or as ordered by the court. | 361 |
| (b) Any owner of record or any other lienholder or other | 362 |
| party with a recorded interest in the residential property may | 363 |
| lose all interest in the residential property, including all | 364 |
| statutory or common law equity of redemption or other interest in | 365 |
| the residential property, if the residential mortgage is not paid, | 366 |
| settled, modified, or otherwise resolved by some other accord and | 367 |
| satisfaction between the financial institution and the owner or | 368 |
| any other lienholder or interest holder in the residential | 369 |
| property. | 370 |
| (2) That any owner of the residential property, in order to | 371 |
| redeem the property, must pay, settle, have modified, or reach an | 372 |
| accord and satisfaction at any time before the expiration of the | 373 |
| equity of redemption as provided in section 2330.10 of the Revised | 374 |
| Code. | 375 |
| (3) That the action is being prosecuted by a financial | 376 |
| institution and the name, address, and telephone number of the | 377 |
| attorney for the financial institution; | 378 |
| (4) The case number assigned by the clerk; | 379 |
| (5) That all subsequent pleadings, motions, and papers | 380 |
| associated with the case and filed by any interested party must be | 381 |
| filed with the clerk and will become part of the case file unless | 382 |
| a party is deemed to be in default of the proceedings as described | 383 |
| in section 2330.05 of the Revised Code. | 384 |
| (D)(1) Subsequent pleadings, motions, and papers following | 385 |
| notice of the summons, complaint, and affidavit shall be filed | 386 |
| with the clerk and shall be served by the filing party upon all | 387 |
| parties of record, except in the case of parties deemed to be in | 388 |
| default of the proceedings as described in section 2330.05 of the | 389 |
| Revised Code. | 390 |
| (2) Notwithstanding division (F) of this section, service by | 391 |
| publication in any case requiring such service shall be advertised | 392 |
| in the manner prescribed by Civil Rule 4.4 except that, if service | 393 |
| by publication is necessary, such publication shall be made once a | 394 |
| week for three consecutive weeks, and the service shall be | 395 |
| complete at the expiration of three weeks after the date of the | 396 |
| first publication. In any action brought under this chapter, if | 397 |
| the plaintiff determines that service upon a defendant may be | 398 |
| obtained ultimately only by publication, the plaintiff may cause | 399 |
| service to be made simultaneously by certified mail, return | 400 |
| receipt requested, ordinary mail, and publication. Parties served | 401 |
| by certified or ordinary mail are not required to file an answer | 402 |
| to the complaint. A party served by publication must appear, move, | 403 |
| or plead to the complaint within twenty-eight days after service | 404 |
| is completed, or such party shall be deemed in default of | 405 |
| proceedings. | 406 |
| (E) Any inadvertent noncompliance with the rules in this | 407 |
| chapter not materially affecting notice and opportunity to appear | 408 |
| at a final hearing as described in section 2330.06 of the Revised | 409 |
| Code shall not serve to defeat or terminate the case or subject | 410 |
| the case to dismissal if notice or service of the summons and | 411 |
| complaint, if challenged, can be proven by a preponderance of the | 412 |
| evidence or are acknowledged by the party charged with notice or | 413 |
| service. Any irregularity that materially affects notice and | 414 |
| opportunity to appear shall be deemed waived if the party charged | 415 |
| with notice makes an appearance in the action or makes a filing in | 416 |
| relation to the action. | 417 |
| (F) Expedited foreclosure proceedings under this chapter | 418 |
| constitute special statutory proceedings pursuant to Civil Rule 1, | 419 |
| and as such, except for the service of process as prescribed in | 420 |
| this chapter and in Civil Rule 4, are exempted from the Civil | 421 |
| Rules. However, the court may utilize the procedures contained in | 422 |
| the applicable Rules of Civil Procedure to the extent that such | 423 |
| use facilitates the practical or efficient conduct and purposes of | 424 |
| proceedings undertaken pursuant to this chapter, such as vacating | 425 |
| orders, correcting clerical mistakes, and providing notice to the | 426 |
| parties. | 427 |
| (G) For purposes of efficiently and promptly implementing the | 428 |
| provisions of this chapter, the court, clerk, and designated law | 429 |
| enforcement officer may adopt, not inconsistent with this chapter, | 430 |
| such practice forms, forms of notice of hearings and notice to | 431 |
| parties, forms of orders, adjudications, fees, publication forms, | 432 |
| deed forms, and other procedures customarily within their official | 433 |
| purview or duties. | 434 |
| (H) "Affidavit," as required by division (B)(3)(a) of this | 435 |
| section, means an affidavit required to be signed and attested to | 436 |
| either by the attorney filing the foreclosure action on behalf of | 437 |
| the financial institution or a representative of the financial | 438 |
| institution that based on information and belief attests to and | 439 |
| contains the following information: | 440 |
| (1) That the declarant has authority from the financial | 441 |
| institution to execute the affidavit; | 442 |
| (2) That the declarant has knowledge based on reasonable | 443 |
| information and belief of the facts contained in the affidavit; | 444 |
| (3) That the property being foreclosed upon is residential | 445 |
| property as defined in section 2330.01 of the Revised Code. | 446 |
| (4) The permanent parcel numbers and, if available, the | 447 |
| common address of the property; | 448 |
| (5) An original signature by the attesting declarant; | 449 |
| (6) An original notarization on the affidavit by an | 450 |
| authorized notary in this state or the state and county of such | 451 |
| declarant's residence; | 452 |
| (7) The name, address, and telephone number of the individual | 453 |
| upon whose information the declarant's information and belief is | 454 |
| based. | 455 |
| Sec. 2330.041. The notice of summons prepared by the court | 456 |
| pursuant to division (C) of section 2330.04 of the Revised Code | 457 |
| shall be in substantially the following form: | 458 |
| THIS IS A FORECLOSURE LAWSUIT BEING PROSECUTED IN THE (NAME | 459 |
| OF COURT). YOU HAVE BEEN NAMED AS A DEFENDANT IN THIS SUIT AS | 460 |
| SOMEONE WHO HAS AN INTEREST IN THE FOLLOWING PARCEL OF LAND: | 461 |
| (DESCRIPTION AS SHOWN IN COMPLAINT) | 462 |
| THIS PARCEL HAS BEEN INCLUDED IN AN ACTION INSTITUTED BY | 463 |
| (NAME OF FINANCIAL INSTITUTION), BEING CASE NO. (CASE NUMBER) | 464 |
| FILED IN THE (NAME OF COURT), (LOCATION), OHIO, ON (DATE OF | 465 |
| FILING) SEEKING THE EXPEDITED FORECLOSURE AND SALE OR DIRECT | 466 |
| TRANSFER OF THE PARCEL AS A RESULT OF THE ALLEGED DEFAULT OF A | 467 |
| RESIDENTIAL MORTGAGE HELD BY THE ABOVE NAMED FINANCIAL INSTITUTION | 468 |
| AGAINST THE PARCEL. THE ATTORNEY REPRESENTING THE FINANCIAL | 469 |
| INSTITUTION IN THIS MATTER IS: (NAME OF ATTORNEY FOR FINANCIAL | 470 |
| INSTITUTION), WITH OFFICES AT (ATTORNEY'S BUSINESS ADDRESS), AND A | 471 |
| BUSINESS PHONE NUMBER OF (ATTORNEY'S BUSINESS PHONE NUMBER). | 472 |
| ANY PERSON OWNING OR CLAIMING ANY RIGHT, TITLE, OR INTEREST | 473 |
| IN, OR LIEN UPON, THIS PARCEL MUST APPEAR AT ANY HEARING SCHEDULED | 474 |
| BY THE COURT IN ORDER TO SET FORTH THE NATURE AND AMOUNT OF THE | 475 |
| PERSON'S INTEREST AND ANY DEFENSE OR OBJECTION TO THE FORECLOSURE. | 476 |
| ALL SUBSEQUENT PLEADINGS, MOTIONS, AND PAPERS SHALL BE FILED IN | 477 |
| THE OFFICE OF THE UNDERSIGNED CLERK OF THE COURT, AND A COPY OF | 478 |
| ANY SUCH PLEADINGS, MOTIONS, AND PAPERS SHALL BE DELIVERED TO THE | 479 |
| ATTORNEY FOR THE FINANCIAL INSTITUTION ON OR BEFORE THE DATE OF | 480 |
| ANY FINAL HEARING. | 481 |
| IF YOU DO NOT APPEAR AT ANY HEARING SCHEDULED BY THE COURT, A | 482 |
| JUDGMENT OF FORECLOSURE MAY LIKELY BE TAKEN AGAINST YOU BY DEFAULT | 483 |
| AND THE PARCEL SHALL BE ORDERED SOLD AT PUBLIC AUCTION OR | 484 |
| TRANSFERRED DIRECTLY TO THE FINANCIAL INSTITUTION, A COUNTY LAND | 485 |
| REUTILIZATION CORPORATION, OR OTHER ELECTING SUBDIVISION AS | 486 |
| DEFINED IN CHAPTERS 1724. AND 5722. OF THE REVISED CODE WITHOUT | 487 |
| APPRAISAL AND WITHOUT AUCTION SALE ON A DATE AND IN A MANNER | 488 |
| PURSUANT TO SECTION 2330.08 OF THE REVISED CODE OR AS OTHERWISE | 489 |
| ORDERED BY THE COURT. | 490 |
| THE OWNER OR LIENHOLDER OF, OR OTHER PERSON WITH A RECORDED | 491 |
| INTEREST IN, A PARCEL MAY LOSE ALL ITS INTEREST IN THE RESIDENTIAL | 492 |
| PROPERTY, IF THE RESIDENTIAL MORTGAGE IS NOT PAID, SETTLED, | 493 |
| MODIFIED, OR OTHERWISE RESOLVED BY SOME OTHER ACCORD AND | 494 |
| SATISFACTION WITH THE FINANCIAL INSTITUTION AND THE OWNER OR A | 495 |
| LIENHOLDER OR PARTY WITH A RECORDED INTEREST IN THE PARCEL. | 496 |
| IN ORDER TO REDEEM THE PARCEL, THE OWNER OF THE RESIDENTIAL | 497 |
| PROPERTY MUST PAY, SETTLE, HAVE MODIFIED, OR REACH AN ACCORD AND | 498 |
| SATISFACTION AT ANY TIME PRIOR TO A JOURNALIZED ENTRY OF AN ORDER | 499 |
| FOR DIRECT TRANSFER PURSUANT TO SECTION 2330.07 OF THE REVISED | 500 |
| CODE, OR A JOURNALIZED ENTRY OF A CONFIRMATION OF SALE. | 501 |
| UPON THE FILING OF ANY ENTRY ORDERING THE DIRECT TRANSFER OF, | 502 |
| OR CONFIRMING THE SALE OF, THE PARCEL, THERE SHALL BE NO FURTHER | 503 |
| EQUITY OF REDEMPTION. AFTER THE FILING OF ANY SUCH ENTRY, ANY | 504 |
| PERSON CLAIMING ANY RIGHT, TITLE, OR INTEREST IN, OR LIEN UPON, | 505 |
| THE PARCEL SHALL BE FOREVER BARRED AND FORECLOSED OF ANY SUCH | 506 |
| RIGHT, TITLE, OR INTEREST IN, LIEN UPON, AND ANY EQUITY OF | 507 |
| REDEMPTION IN, THE PARCEL. | 508 |
| ............................ | 509 |
| CLERK OF THE COURT | 510 |
| .................. COURT | 511 |
| ................., OHIO" | 512 |
| Sec. 2330.05. (A) A party shall be deemed to be in default | 513 |
| of the proceedings in an action brought under this chapter if | 514 |
| either of the following occurs: | 515 |
| (1) The party fails to appear at any hearing after being | 516 |
| served with notice of the summons and complaint by certified or | 517 |
| ordinary mail. | 518 |
| (2) For a party upon whom notice of summons and complaint is | 519 |
| required by publication and has been deemed served, the party | 520 |
| fails to appear, move, or plead to the complaint within | 521 |
| twenty-eight days after service by publication is completed. | 522 |
| (B) If a party is deemed in default pursuant to division (A) | 523 |
| of this section, no further service of any subsequent pleadings, | 524 |
| papers, or proceedings is required on the party by the court or | 525 |
| any other party. Any valuation hearings held in accordance with | 526 |
| section 2330.11 of the Revised Code and any other interim or | 527 |
| ancillary hearings prior to any final hearing, and any orders, | 528 |
| notices, or continuances shall only be required to be sent to | 529 |
| those parties not in default. The court shall neither require nor | 530 |
| order such further notice to one or more of such parties unless | 531 |
| the failure to do so shall result in manifest and substantial | 532 |
| injustice. | 533 |
| (C) If a party is deemed in default pursuant to division (A) | 534 |
| of this section, the subsequent appearance, motion, or pleading of | 535 |
| that party shall not automatically alter the status of that party | 536 |
| as being in default. The party shall remain in defaulted status | 537 |
| and shall not be entitled to service of subsequent pleadings, | 538 |
| papers, and orders unless the defaulted party shows one of the | 539 |
| following: | 540 |
| (1) That the failure to change the defaulted status results | 541 |
| in, and the court so finds, a manifest and substantial injustice | 542 |
| to one or more parties; | 543 |
| (2) Excusable neglect based on facts asserted with | 544 |
| particularity; | 545 |
| (3) That the property in question is not residential property | 546 |
| based on a preponderance of the evidence. | 547 |
| Conclusory assertions shall be insufficient to challenge a | 548 |
| party's defaulted status under this division. | 549 |
| (D) With respect to any issue over a party's defaulted | 550 |
| status, the court may conduct evidentiary hearings on the | 551 |
| sufficiency of process, service of process, or sufficiency of | 552 |
| service of process, in any proceeding arising from a complaint | 553 |
| under this chapter. | 554 |
| Sec. 2330.06. (A) The court shall order and conduct a final | 555 |
| hearing on the merits of a complaint to initiate an expedited | 556 |
| foreclosure on a residential property, including the validity or | 557 |
| amount of any obligations under the residential mortgage, not | 558 |
| sooner than thirty days after service of notice of summons, | 559 |
| complaint, and affidavit has been perfected in accordance with | 560 |
| section 2330.04 of the Revised Code, if the court determines that | 561 |
| all of the following apply: | 562 |
| (1) All parties to the complaint have been served. | 563 |
| (2) No individual named in the complaint is on active | 564 |
| military duty and thereby not available. | 565 |
| (3) The complaint, preliminary judicial report, and affidavit | 566 |
| are before the court for the court's review. | 567 |
| (B) Upon the occurrence of the conditions listed in divisions | 568 |
| (A)(1) to (3) of this section, the court shall schedule a final | 569 |
| hearing on the merits without the necessity of any pretrials, | 570 |
| status conferences, or other interim proceedings. If within | 571 |
| fourteen days after the occurrence of the conditions listed in | 572 |
| divisions (A)(1) to (3) of this section, a court does not on its | 573 |
| own initiative order and schedule within one hundred eighty days | 574 |
| of such scheduling a final hearing on the merits of a complaint to | 575 |
| initiate a foreclosure as described in division (A) of this | 576 |
| section, then the plaintiff may thereafter file a motion | 577 |
| requesting that the court order and conduct a final hearing on the | 578 |
| merits of the complaint, including the validity or amount of any | 579 |
| obligations under the residential mortgage. Upon such motion, the | 580 |
| court shall so order and conduct the final hearing not sooner than | 581 |
| thirty days after notice of service of summons, complaint, and | 582 |
| affidavit and not later than one hundred eighty days after the | 583 |
| filing date of the plaintiff's request for the final hearing. | 584 |
| (C) Proceedings under this chapter shall be limited in | 585 |
| subject matter to: | 586 |
| (1) Substantial conformity of the complaint, affidavit, and | 587 |
| preliminary judicial report to the proceedings authorized in this | 588 |
| chapter; | 589 |
| (2) Sufficiency of process and sufficiency of service of | 590 |
| process; | 591 |
| (3) Whether a party is in default of any proceedings as | 592 |
| provided in section 2330.05 of the Revised Code; | 593 |
| (4) The validity or amount of any obligations under the | 594 |
| residential mortgage; | 595 |
| (5) Whether the property being foreclosed upon is | 596 |
| "residential property" as defined in this chapter; | 597 |
| (6) Whether the mortgagor or plaintiff financial institution | 598 |
| is in default pursuant to the residential mortgage; | 599 |
| (7) The priority, validity, and amount of any obligations of | 600 |
| other lienholders to the residential mortgage. Counterclaims and | 601 |
| cross-claims, whether normally deemed compulsory or permissive | 602 |
| under the applicable Rules of Civil Procedure, may not be asserted | 603 |
| in any action taken under this chapter except as to whether the | 604 |
| financial institution is in breach of the residential mortgage or | 605 |
| the priority and validity of lienholders listed in the preliminary | 606 |
| judicial report. Counterclaims or cross-claims other than those | 607 |
| provided for in this chapter may be pursued by any party in a | 608 |
| separate action unless the court determines in its sound | 609 |
| discretion by clear and convincing evidence that substantial | 610 |
| justice requires inclusion of such claims. | 611 |
| (D) The court may make such findings of fact, conclusions of | 612 |
| law, and orders as it determines necessary as a result of the | 613 |
| final hearing. Before or subsequent to any decree of foreclosure, | 614 |
| the court may order the financial institution and any other | 615 |
| lienholders who have appeared and are not in default to stipulate | 616 |
| to their respective order of priority, or, failing the ability to | 617 |
| stipulate, conduct hearings and make findings to determine the | 618 |
| order of priority. | 619 |
| (E)(1) A court may deem a property to be a residential | 620 |
| property if, along with a complaint to initiate foreclosure, the | 621 |
| record owner of the residential property stipulates or otherwise | 622 |
| affirms in the affidavit described in division (B)(3)(b) of | 623 |
| section 2330.04 of the Revised Code that the property is to be | 624 |
| deemed residential property. | 625 |
| (2) All of the facts contained in the affidavit shall | 626 |
| constitute prima facie evidence and shall be rebuttably presumed | 627 |
| to be true, but may be rebutted to the court at any time prior to | 628 |
| the final hearing if, at the time a financial institution files an | 629 |
| action of foreclosure under this chapter, the complaint includes | 630 |
| an affidavit as described in division (H) of section 2330.04 of | 631 |
| the Revised Code that affirmatively asserts the property is | 632 |
| residential property. | 633 |
| (3) In the case of property unimproved by any building or | 634 |
| structure, if a party asserts an accessory use, the party making | 635 |
| the assertion must show the existence of the accessory use by a | 636 |
| preponderance of the evidence. Failure to assert any such | 637 |
| accessory use by any party at least seven days prior to any final | 638 |
| hearing as described in this section shall be deemed a waiver of | 639 |
| any such assertion and the property shall be deemed residential | 640 |
| property. | 641 |
| (F) After a final hearing, the court shall enter a decree of | 642 |
| foreclosure under this chapter if the court determines that the | 643 |
| information in the complaint, preliminary judicial report, copy of | 644 |
| the promissory note and residential mortgage that secures the | 645 |
| residential property, and affidavit as described in section | 646 |
| 2330.04 of the Revised Code is sufficient to conclude that the | 647 |
| mortgagor is in default of the residential mortgage and the | 648 |
| property that secures the residential mortgage is residential | 649 |
| property. | 650 |
| Sec. 2330.07. (A) In an action for which the preliminary | 651 |
| judicial report as described in section 2329.191 of the Revised | 652 |
| Code states, and the court so finds, that the residential mortgage | 653 |
| is the first and only mortgage on the residential property and the | 654 |
| owner of the residential property is in default of the proceedings | 655 |
| by not having appeared, moved, or pled as described in section | 656 |
| 2330.05 of the Revised Code, the court shall enter a decree of | 657 |
| foreclosure against the residential property and order the | 658 |
| property either sold pursuant to division (B) of section 2330.08 | 659 |
| of the Revised Code, or upon petition of the financial institution | 660 |
| that filed the complaint under this chapter, transferred pursuant | 661 |
| to division (A) of section 2330.08 of the Revised Code. | 662 |
| (B) In an action for which the preliminary judicial report as | 663 |
| described in section 2329.191 of the Revised Code states, and the | 664 |
| court so finds, that the residential mortgage is the first and | 665 |
| only lien on the residential property and the owner of the | 666 |
| residential property is not in default of the proceedings, then | 667 |
| upon any finding in favor of the financial institution, whether by | 668 |
| acknowledgment by the owner at a hearing, stipulation of the | 669 |
| financial institution and the owner of the residential property, | 670 |
| or upon the court's finding after a final hearing, the court shall | 671 |
| enter a decree of foreclosure against the residential property and | 672 |
| order the property either sold pursuant to division (B) of section | 673 |
| 2330.08 of the Revised Code, or upon petition of the financial | 674 |
| institution that filed the complaint under this chapter, | 675 |
| transferred pursuant to division (A) of section 2330.08 of the | 676 |
| Revised Code. | 677 |
| (C) In an action for which the preliminary judicial report as | 678 |
| described in section 2329.191 of the Revised Code states, and the | 679 |
| court so finds, that the residential mortgage is the first lien on | 680 |
| the residential property but there are other liens, or interested | 681 |
| parties of record, and the owner of the residential property and | 682 |
| all other lienholders and interested parties are in default of the | 683 |
| proceedings by not having appeared, moved, or pled as described in | 684 |
| section 2330.05 of the Revised Code, the court shall enter a | 685 |
| decree of foreclosure against the residential property and order | 686 |
| the property either sold pursuant to division (B) of section | 687 |
| 2330.08 of the Revised Code, or upon petition of the financial | 688 |
| institution that filed the complaint under this chapter, | 689 |
| transferred pursuant to division (A) of section 2330.08 of the | 690 |
| Revised Code. | 691 |
| (D) In an action for which the preliminary judicial report as | 692 |
| described in section 2329.191 of the Revised Code states, and the | 693 |
| court so finds, that the residential mortgage is the first lien on | 694 |
| the residential property but there are other liens, and the owner | 695 |
| of the residential property or any other lienholder or interested | 696 |
| party is not in default of the proceedings, then upon any finding | 697 |
| in favor of the financial institution on the residential mortgage, | 698 |
| whether by acknowledgement at a hearing, stipulation of the | 699 |
| financial institution and the owner of the residential property, | 700 |
| or upon the court's finding after a final hearing, the court shall | 701 |
| enter a decree of foreclosure and order the residential property | 702 |
| disposed of in accordance with one of the following: | 703 |
| (1) If the residential mortgage balance as determined by the | 704 |
| court is greater than the fair market value of the residential | 705 |
| property, the court shall order the property either sold pursuant | 706 |
| to division (B) of section 2330.08 of the Revised Code, or upon | 707 |
| petition of the financial institution that filed the complaint | 708 |
| under this chapter, transferred pursuant to division (A) of | 709 |
| section 2330.08 of the Revised Code. | 710 |
| (2) If the residential mortgage balance as determined by the | 711 |
| court is less than the fair market value of the residential | 712 |
| property, the court shall order the property sold pursuant to | 713 |
| division (B) of section 2330.08 of the Revised Code. | 714 |
| To determine the fair market value of the residential | 715 |
| property for purposes of this section, the county auditor's most | 716 |
| recent valuation of the residential property shall be rebuttably | 717 |
| presumed to be the fair market value of the property. The | 718 |
| auditor's valuation is prima facie evidence of the actual fair | 719 |
| market value, which may be rebutted to the court by any party to | 720 |
| the action in accordance with section 2330.11 of the Revised Code. | 721 |
| (E) In any action described in divisions (A) to (D) of this | 722 |
| section, if the financial institution does not petition the court | 723 |
| for a direct transfer pursuant to division (A) of section 2330.08 | 724 |
| of the Revised Code, regardless of the number of liens on the | 725 |
| residential property, or if the court denies a petition for a | 726 |
| direct transfer, the court, upon entering a decree of foreclosure, | 727 |
| shall order the residential property sold pursuant to division (B) | 728 |
| of section 2330.08 of the Revised Code. | 729 |
| (F)(1) In an action when one or more parties named as | 730 |
| defendants in the complaint are not in default of the proceedings | 731 |
| as described in section 2330.05 of the Revised Code and any matter | 732 |
| justiciable under division (C) of section 2330.06 of the Revised | 733 |
| Code is contested by one or more parties, the court may hear and | 734 |
| adjudicate the case under this chapter, or, in its sound | 735 |
| discretion, may hear and adjudicate the case according to the | 736 |
| court's normal case management schedule and local rules | 737 |
| notwithstanding the time requirements provided in divisions (A) | 738 |
| and (B) of section 2330.06 of the Revised Code. | 739 |
| (2) In an action in which all of the parites named as | 740 |
| defendants in the complaint are in default of the proceedings as | 741 |
| described in section 2330.05 of the Revised Code, the court shall | 742 |
| hear and adjudicate the case under the time requirements provided | 743 |
| in divisions (A) and (B) of section 2330.06 of the Revised Code, | 744 |
| unless the court finds specifically by clear and convincing | 745 |
| evidence that doing so will result in manifest and substantial | 746 |
| injustice to one or more parties. | 747 |
| Sec. 2330.08. (A) Upon the issuance of a decree of | 748 |
| foreclosure under this chapter on a residential property that the | 749 |
| financial institution has petitioned the court to order directly | 750 |
| transferred, and the court so orders the property directly | 751 |
| transferred, the court shall order the designated law enforcement | 752 |
| officer to prepare a deed without appraisal or exposure to sale to | 753 |
| the financial institution that brought the action, a county land | 754 |
| reutilization corporation, or other electing subdivision as | 755 |
| indicated in the financial institution's petition. Subject to | 756 |
| division (A)(2) of this section, the deed shall be free and clear | 757 |
| of all liens, encumbrances, and obligations, other than unpaid | 758 |
| taxes and assessments that may be delinquent, and such taxes and | 759 |
| assessments that are a lien on the residential property but not | 760 |
| yet due and payable. The order shall do the following: | 761 |
| (1) If the deed is prepared for the financial institution, | 762 |
| provide that upon the financial institution's payment of all taxes | 763 |
| and assessments and the costs of the proceedings, the designated | 764 |
| law enforcement officer shall deliver the deed directly to the | 765 |
| financial institution without appraisal and without sale; | 766 |
| (2) If the deed is prepared for a county land reutilization | 767 |
| corporation or other electing subdivision, provide that upon the | 768 |
| financial institution's payment of the costs of the proceedings, | 769 |
| the designated law enforcement officer shall deliver the deed to | 770 |
| the county land reutilization corporation or other electing | 771 |
| subdivision without appraisal and without sale. The direct | 772 |
| transfer of the residential property to a county land | 773 |
| reutilization corporation or other electing subdivision shall | 774 |
| extinguish the lien on the title for all taxes, assessments, | 775 |
| penalties, interest, and charges delinquent at the time of the | 776 |
| conveyance of the residential property to the county land | 777 |
| reutilization corporation or other electing subdivision, the same | 778 |
| as if such transfer were made to a county land reutilization | 779 |
| corporation or other electing subdivision in lieu of taxes | 780 |
| pursuant to section 5722.10 of the Revised Code. The financial | 781 |
| institution shall pay for the costs of the proceedings under this | 782 |
| division. | 783 |
| (B) Upon the issuance of a decree of foreclosure under this | 784 |
| chapter on a residential property for which the court does not | 785 |
| order the residential property directly transferred as provided in | 786 |
| section 2330.07 of the Revised Code, the court shall order the | 787 |
| sale of the residential property in the manner commonly performed | 788 |
| by the designated law enforcement officer of the county in which | 789 |
| the residential property is located except that the designated law | 790 |
| enforcement officer need only expose such property to sale one | 791 |
| time. Notwithstanding sections 2329.17 and 2329.20 of the Revised | 792 |
| Code, the minimum bid at sale shall be three hundred dollars, and | 793 |
| the residential property shall not be required to be appraised. | 794 |
| Chapter 2329. of the Revised Code and other applicable execution | 795 |
| statutes may be used for the disposition of the residential | 796 |
| property, not inconsistent with this chapter. | 797 |
| The purchaser of the residential property at any sale | 798 |
| pursuant to this division shall pay all current and delinquent | 799 |
| taxes and assessments on the residential property, except when the | 800 |
| purchaser is a county land reutilization corporation. The | 801 |
| financial institution shall pay the costs of the proceedings under | 802 |
| this division. | 803 |
| (C) The rights of the owner who owned the residential | 804 |
| property before a sale conducted pursuant to this chapter shall | 805 |
| remain unaffected by any excess or deficiency balance resulting | 806 |
| from the difference between the residential mortgage balance and | 807 |
| the sale price of the residential property pursuant to any | 808 |
| residential mortgage. | 809 |
| (D) If no person bids at a sale held pursuant to this | 810 |
| section, the financial institution invoking the provisions of this | 811 |
| chapter shall bid in sufficient amount, up to its residential | 812 |
| mortgage balance, to acquire the residential property. In that | 813 |
| event, the financial institution as purchaser, or its successor or | 814 |
| assigns at any sale, shall pay all current and delinquent taxes | 815 |
| and assessments on the residential property and the costs of the | 816 |
| proceedings under this chapter. | 817 |
| Sec. 2330.09. (A) The court shall prescribe deed forms and | 818 |
| issue orders of sale or orders of transfer as authorized in | 819 |
| division (C) of section 2327.02 of the Revised Code. The order of | 820 |
| sale, order of transfer, and deed forms and the description of the | 821 |
| residential property shall be ordered by the court so that at the | 822 |
| time of deed delivery to any party that obtains residential | 823 |
| property through direct transfer or sale as described in section | 824 |
| 2330.07 of the Revised Code, the designated law enforcement | 825 |
| officer need only sign the deed and deliver the deed upon the | 826 |
| payment of all applicable purchase proceeds, costs, taxes, and | 827 |
| assessments, as applicable. | 828 |
| (B) By filing an action under this chapter, the plaintiff | 829 |
| authorizes and consents to the designated law enforcement officer | 830 |
| filing the deed, which shall constitute deed delivery. | 831 |
| Sec. 2330.10. (A) Notwithstanding section 2329.33 of the | 832 |
| Revised Code, a party entitled to redeem a residential property | 833 |
| after a decree of foreclosure is issued under this chapter shall | 834 |
| do so within the following time periods: | 835 |
| (1) In the case of a direct transfer made pursuant to section | 836 |
| 2330.07 of the Revised Code, prior to the journalized entry of the | 837 |
| order to transfer, which may be included in the decree of | 838 |
| foreclosure or in a separate order to so transfer pursuant to a | 839 |
| decree. In the case of such a direct transfer, no further action | 840 |
| of the court shall be required after entry of the order, at which | 841 |
| point any statutory or common law equity of redemption in any | 842 |
| owner shall be deemed forever and entirely extinguished. | 843 |
| (2) In all other actions brought under this chapter, on or | 844 |
| before confirmation of sale, after which any statutory or common | 845 |
| law equity of redemption in any owner shall be deemed forever and | 846 |
| entirely extinguished. | 847 |
| (B) Upon the expiration of the time periods prescribed in | 848 |
| this section, a transfer to any transferee shall vest free and | 849 |
| clear fee simple title to the transferee free of all liens, | 850 |
| encumbrances, or charges in equity or law, except easements and | 851 |
| restrictions of record running with the land. | 852 |
| Sec. 2330.11. (A) For purposes of rebutting the presumption | 853 |
| of fair market value when value is rebuttably presumed pursuant to | 854 |
| division (D)(2) of section 2330.07 of the Revised Code, at any | 855 |
| time after the filing of the complaint, or upon the court's own | 856 |
| motion, but in no event later than fourteen days prior to any | 857 |
| final hearing, any party may file with the court a good faith | 858 |
| appraisal of the residential property from a licensed professional | 859 |
| appraiser and request a hearing to determine the fair market value | 860 |
| of the residential property. Any party may file additional | 861 |
| appraisals to refute or confirm any appraisal submitted by another | 862 |
| party. An appraisal shall not be submitted for any purpose other | 863 |
| than to rebut the presumption of value determined pursuant to | 864 |
| division (D)(2) of section 2330.07 of the Revised Code and any | 865 |
| appraisals in response to that determination. | 866 |
| (B) If proceedings on valuation require additional time | 867 |
| beyond that prescribed in this chapter, the court may proceed with | 868 |
| the case on its standard case docket as prescribed in division (F) | 869 |
| of section 2330.07 of the Revised Code, except that the court | 870 |
| shall dispose of the case as authorized in divisions (A) to (D) of | 871 |
| section 2330.07 and section 2330.09 of the Revised Code as | 872 |
| applicable, depending on the determination of fair market value | 873 |
| and to the extent such determination impacts the applicability of | 874 |
| those divisions and that section. | 875 |
| Sec. 2330.12. (A) Unless otherwise specifically prohibited | 876 |
| by the residential mortgage or a specific statutory provision of | 877 |
| law, a financial institution that has filed an action under this | 878 |
| chapter may enter into a residential property to secure and | 879 |
| protect it from harm if the property is unsecured. | 880 |
| (B) If entry as described in division (A) of this section is | 881 |
| prohibited by the residential mortgage documents or related | 882 |
| contractual documents, then, in the interest of public safety, the | 883 |
| court may authorize entry for such purposes by order either upon | 884 |
| petition or upon the court's own motion. | 885 |
| (C) A financial institution shall not be subjected to | 886 |
| criminal or civil liability for trespass, unauthorized entry, | 887 |
| invasion of privacy, building or housing code violations, or other | 888 |
| responsibility for the condition of the residential property due | 889 |
| to an entry authorized pursuant to division (A) of this section. | 890 |
| This section does not affect a financial institution's duties to | 891 |
| use ordinary care that existed prior to the effective date of this | 892 |
| section under the common law. | 893 |
| (D) In the event of an entry described in division (A) of | 894 |
| this section, the financial institution shall not be deemed to be | 895 |
| a mortgagor-in-possession of a residential property under any | 896 |
| statute or common law. The securing of the residential property | 897 |
| including the changing of locks and restricting access shall not | 898 |
| be considered as exercising any dominion, control, or the right of | 899 |
| either over the property so long as at the time of the entry, an | 900 |
| action under this chapter was filed and pending. | 901 |
| Section 2. That existing sections 2329.01, 2329.17, 2329.20, | 902 |
| 2329.26, 2329.27, and 2329.33 of the Revised Code are hereby | 903 |
| repealed. | 904 |
| Section 3. Chapter 2330. of the Revised Code is intended to | 905 |
| provide an alternative basis for filing foreclosures by financial | 906 |
| institutions against residential property secured by a residential | 907 |
| mortgage. Because this alternative statutory procedure is intended | 908 |
| to expedite the foreclosure of unoccupied, often blighted, | 909 |
| residential property by providing a more expedited procedure than | 910 |
| that afforded by other available foreclosure actions, Chapter | 911 |
| 2330. of the Revised Code shall be known as the Private | 912 |
| Foreclosure Fast-Track Law. | 913 |
