In that event, the taxing authority will place a tax lien on the property. Second, even if a person owns his or her home outright, without a mortgage, the home can be foreclosed if he or she fails to keep up with property taxes. Contrary to a popular misconception, this can happen after just one missed payment, depending on the specific provisions of the mortgage. In other states, banks and other mortgagees can foreclose on a mortgage without going to court, but in Ohio, foreclosure requires a formal lawsuit.įoreclosures occur in one of two circumstances: First, if the home was bought with a mortgage, or a mortgage was later taken out on the home, then the mortgagee (the bank or other lender) can foreclose if the mortgagor (the homeowner) defaults. What Happens to Unclaimed Foreclosure Funds.Consequently, it is critical for homeowners to move quickly to obtain any surplus amount remaining after a foreclosure sale. If this is not done in time, the unclaimed foreclosure funds may be transferred to the county treasury and held indefinitely or forfeited entirely, depending on the type of foreclosure. Rather, the homeowner must ask the court overseeing the foreclosure to distribute the surplus to him or her. Unfortunately, receiving that surplus is not an automatic process. When that happens, the homeowner may be entitled to the surplus funds raised. Often, the foreclosure sale fails to raise adequate funds to pay the total amount due, resulting in a deficiency for which the homeowner typically remains liable.īut occasionally, particularly when the housing market is strong, a home will sell for more than the balance due on a mortgage or the amount of a tax lien. This was worse than the national average of 1 in every 1,882 homes, and placed Ohio just outside the top 10 states with the worst rates of foreclosure.įoreclosure in Ohio is a judicial process by which a mortgage lender, taxing authority, or tax-certificate holder sells a person’s home after the homeowner defaults on a mortgage or fails to pay property taxes. A wise investor will research each property to make certain his investment is secure.During August 2018, one in every 1,456 homes in Ohio received a foreclosure filing, according to. The market for tax lien properties is competitive and the taxing authorities have specific rules to be followed. Tax liens can offer higher returns than many other types of interest-bearing investments and represent an opportunity for very little cash. There is a highly organized market for real estate tax liens and many sophisticated investors buy them. Failure to give notice, as required by law, may jeopardize your investment. Be familiar with the rules for notice and follow them carefully. In most instances, if you are the successful bidder for a tax certificate, the rules require that periodic notice to the property owner be given.It is possible to buy a lien that has little or no value, so familiarity with the property is important. It may be in a bad area it may be abandoned and run down it may have burned down. There have been instances where the amount of tax liens on a property are more than the property is worth. (Please keep in mind that the owner may still be living in the property and their privacy should be respected).
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