Ohio Deficiency Judgment Law

A deficiency is created when a lender forecloses on a property and receives less than what was owed on the property.  A deficiency judgment is created when a lender sues and gets a judgment on the amount still owed on the loan after the foreclosure. Ohio has the following restrictions on obtaining a deficiency judgment:

  • A creditor may obtain a deficiency judgment, but it is void after the expiration of two years from the confirmation of the foreclosure sale (Ohio Rev. Code Ann. Section 2329.08;
  • Prior to the foreclosure, the officer who makes the levy is charged with obtaining the fair market value of the property (Ohio Rev. Code Ann. Section 2329.17).  The property cannot be sold for less than two-thirds of the fair market value (Ohio Rev. Code Ann. Section 2329.20).

What the fair market value of a property is can be difficult to determine and the homeowner and the mortgage company will likely disagree as to that value.  If you live in Ohio and have questions about whether your particular situation might give rise to a deficiency judgment, speak to an attorney in your area for specific guidance.  Or continue searching this site for potential foreclosure options

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