Ohio Amends Provisions Regarding Foreclosures and Escrows

• January 19, 2017
• Elizabeth Dailey

Ohio amended several provisions, including changes to real property foreclosures and escrow transactions. The amended provisions are effective as of April 5, 2017.

Foreclosure

There are several new provisions regarding foreclosures of real property. One provision specifies that no person shall use plywood to secure real property that is deemed vacant and abandoned under section 2308.02 of the Revised Code after April 5, 2017.

Another provision requires that the minimum bid for a foreclosure sale shall be equal to the total amount of the unpaid taxes and court costs. If that amount is greater than the appraised value of the property, the court shall determine the minimum bid, which shall not exceed the appraised value of the property. If the property is sold for less than the unpaid taxes and court costs, then the court shall order the county auditor to discharge all unpaid taxes and court costs.

Escrow

The new escrow provision requires that all funds to be held for disbursement in real property transactions meet the following criteria:

1. The funds necessary for the disbursement have been transferred electronically to or deposited into the escrow account of the escrow or closing agent and are immediately available for withdrawal and disbursement;
2. The funds do not exceed an aggregate amount of $1000, have been physically received by the agent prior to disbursement, and are intended for deposit no later than the next banking day after the date of disbursement; or
3. Are funds drawn on a special or trust bank account as described in division (A)(26) of section 4735.18 of the Revised Code.

The transfers or deposits described above consist of any of the following:

1. Business checks drawn on special or trust bank accounts described in division (A)(26) of section 4735.18 of the Revised Code;
2. Cash, personal checks, business checks other than those described in division (B)(1) of this section, certified checks, cashier’s checks, or money orders that do not exceed an aggregate amount of $1000 and are drawn on an existing account at a federally insured bank, savings and loan association, credit union, or savings bank;
3. Electronically transferred funds via the automated clearing house system initiated by, or a check issued by the United States, the State of Ohio, or by an agency, instrumentality, or political subdivision of the United States or the State of Ohio; or
4. Electronically transferred funds via the real-time gross settlement system provided by the federal reserve banks.

For the full text of the provisions, please refer to https://legiscan.com/OH/text/HB463/id/1440643/Ohio-2015-HB463-Enrolled.pdf.

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