New Ohio Bill Forces Banks to Speed-Up Foreclosures

State representative Dennis Murray (D-Sandusky) introduced House Bill (HB) 323 to Ohio’s House of Representatives, which would require banks to move foreclosures to auction within a certain timeline or forfeit its mortgage liens and any proceeds from the sale of the property. The bill requires that a written document accompany foreclosure filings. The document would include the name of the note holder, whether the note has been securitized, the identity of the mortgage-backed-security (MBS) that holds the loan and the name of the MBS trustee. The document must also include a statement detailing if the residential property is occupied or vacant, according to the bill. If the borrower answers the foreclosure complaint made by the bank, the bank must file a series of reports with the court within 45 days. The report must include the most recent value of the property, an estimate from the bank on the property’s current condition or an appraisal conducted by a licensed appraiser. If the borrower does not answer the complaint within 60 days, the bank must file a motion for default judgment during the next 60 days. The filing must include an affidavit showing that the bank inspected the property, attempted to reach the borrower via telephone and sent letters to the borrower. The bank must also attest that the property is not occupied. If no motion is filed within 60 days, the foreclosure complaint will be dismissed, and the bank will forfeit rights to the property and any proceeds from the sale. Write to Jon Prior.

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