When it comes to foreclosures Ohio is a judicial state. That means the foreclosure process begins when the lender files a complaint and records a notice in public records stating their claim on the property. The complaint also tells the world about the debt and how much is owed. In judicial states, like Ohio, filing a complaint is the only legal way for the lender to foreclose its lien and take possession of the property.
22 states use judicial procedures as the primary way to foreclose. According to the Mortgage Bankers Association the national average to foreclose in states like Ohio averages 480 to 700 days. Day 1-180 is considered Pre-Foreclosure, days 180-220 In-Foreclosure and after that “Post Foreclosure” which may include eviction and REO Marketing and Sale.
Neighborhoods around greater Cincinnati have seen a number of foreclosures during the past several years and often ask why does it take so long. Hopefully the brief description above and understanding that almost every foreclosure has unique characteristics, explains why some properties seem to be in”limbo”. Finally lending institutions are starting to grasp on to the fact that “short sales” are much better for everybody and, in some cases, have beefed up staffing in order to expedite the short sale process.