Ohio Counties
State Auction Process in Ohio
In Ohio, the tax auction process involves both property tax lien sales and tax deed sales, making it a hybrid state. Here's a closer look at each type of sale:
1. Property Tax Lien Sales
In property tax lien sales, the county government sells a lien on the property to investors. These liens represent the unpaid property taxes owed by the property owner. Investors who purchase the liens become the primary lienholders and have the right to collect the delinquent taxes along with any accrued interest and penalties.
Ohio conducts property tax lien sales through the issuance of tax lien certificates. Investors bid on the interest rate they are willing to accept as a return on their investment. The certificate is awarded to the bidder willing to accept the lowest interest rate.
After the sale, the property owner enters a redemption period during which they have the opportunity to repay the delinquent taxes plus interest to the certificate holder. In Ohio, the redemption period for tax liens is typically one year from the date of the tax lien auction. This means that property owners have one year to redeem the tax lien certificate by paying off the delinquent taxes and any accrued interest to the certificate holder. If the owner redeems the property within the redemption period, the certificate holder is reimbursed for their investment plus the agreed-upon interest.
2. Tax Deed Sales:
In tax deed sales, the county government sells the actual ownership interest in the property to the highest bidder. This occurs when the property owner fails to redeem the property within the redemption period after a tax lien sale.
Auction Process: The tax deed sales are conducted through an auction where interested bidders compete by placing bids on the properties. The highest bidder, who meets the bidding requirements, is awarded ownership of the property.
Clear Title: When purchasing a property through a tax deed sale, the winning bidder typically obtains a tax deed or certificate of purchase. This document signifies the transfer of ownership rights from the county to the buyer. It’s important to note that the buyer may need to go through additional steps to obtain a clear title, such as quieting the title or resolving any outstanding liens.
Ohio Foreclosure Process
Ohio is a judicial foreclosure state. This means that the Ohio court system oversees the foreclosure process, and banks must file a lawsuit and seek court approval in the form of a judgment before completing a foreclosure sale.
Day 1–15: Missed Payment
When you miss a payment, you have a grace period of two weeks to make your regular payment without consequences. However, after Day 15, late fees will be assessed by your lender.
Day 45-60: Notice of Breach
Around six weeks to two months after your first missed payment, your lender will send you a letter stating that you are in breach of your mortgage contract. This letter will outline your options for catching up on payments and inform you of the potential consequences if you fail to do so.
Day 90: Ohio Foreclosure Lawsuit Filed
Ohio follows a judicial foreclosure process, meaning that the court system oversees foreclosures, and lenders must file a lawsuit and obtain court approval through a judgment before proceeding with a foreclosure sale. Three months after your first missed payment, your lender can initiate a foreclosure proceeding by filing a lawsuit with the court. You will receive a summons and a copy of the complaint.
Day 118: File Answer with Court
Within 28 days after the lawsuit is filed (Day 118), you must submit an official answer to the summons in court. During this time, you can request mediation or seek additional time to work with your lender. Failure to file an answer may result in your lender filing for summary judgment, which could grant them the right to sell your home.
Sheriff’s Sale and Redemption Period: Up to 90 Days
If the court grants the lender’s motion for summary judgment, they can proceed with a sheriff’s sale. The duration of this process varies depending on the court’s workload. On the day of the sheriff’s sale, your home will be sold, but you won’t have to vacate immediately.
Following the sale, the sheriff must inform the court within 60 days, and the court has an additional 30 days to confirm the sale. This period, known as the redemption period, can range from a few days to the full 90 days. During this time, you have the right to repurchase your home by paying the sale price plus any fees incurred from the foreclosure process.
If you choose not to redeem your home, the sheriff will notify you that you must leave the property.
County-Specific Information
Each county decides when it will have a tax-defaulted property auction. State law sets out how the auction must be announced and how property owners have to be notified.
Beyond that, each county has its own rules for its tax-defaulted property auctions.
For instance, Franklin County holds auctions in the second week of November. Franklin County requires registration and a $500 deposit prior to the auction. If you don’t buy something at the auction, you get this money back. If you win an auction, that money is applied to your purchase.
You also have to pay at least 10 per cent of the purchase price on the sale of the auction. You have five days to pay off the balance.
Stark County holds auctions on the first Monday of the month year-round.
Delaware County holds auctions at irregular intervals, according to the dates of past auctions. Stark County requires you to pay at least 10 per cent of the winning bid on the day of the auction and gives you 30 days to pay the rest.
Cuyahoga County does not require a deposit but does require registration. Cuyahoga County has three levels for paying for whatever you win at auction:
- If the property sells for $500 or less, you have to pay the total amount on the day of the auction.
- If the property sells for $501-$5,000, you must pay at least $500 on the day of the auction.
- If the property sells for more than $5,001, at least 10 per cent is due the day of the auction. You then have 14 days to pay off the remainder.
In Summary
- Type of auction: Ohio is a hybrid state i.e. it has both tax deed and tax lien process.
- Time and location– varies according to county, typically at the county courthouse
- Redemption period– the redemption period for tax liens is typically one year from the date of the tax lien auction.
- Type of foreclosure -Judicial foreclosure state.
- Foreclosure Redemption Period- 90 days
Online Auction Resources
- Bid4Assets
- Auction.com
- Xome
- ServiceLink Auction
- Hubzu
- RealtyBid
- Tranzon Online Auctions
- HUD Homes USA
- All Auction Sales
- Williams Auction
- Bank Foreclosures Sale
- U.S. Treasury Auctions
- LandWatch North Dakota Auctions
- North Dakota Surplus Property
- Pifer’s Auction & Realty
- LandSearch North Dakota Auctions
- Land.com North Dakota Listings
- Johnson Auction & Realty
- Peoples Company Auctions