Foreclosure is the process by which a lender, such as a bank or mortgage company, takes possession of a property when the borrower defaults on the mortgage. While this may seem like a simple concept, many people do not realize there are different types of foreclosures. There are three main types of foreclosure: judicial, non-judicial, and strict. Judicial foreclosure is the most common. It is also the only type of foreclosure used in Ohio.
Under Ohio law, a lender must get a court order to foreclose on your property. The judicial foreclosure process requires the lender to file a lawsuit in court. The lender must notify all relevant parties of the action. You, as the borrower, have the opportunity to contest the foreclosure. After you receive notice of the lawsuit, you can respond either by making a payment or by raising any objections or defenses. If the lender is ultimately successful on the foreclosure claim, the court will issue an order allowing the lender to begin the process of selling your home.