State Foreclosure Law Library

ohio

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Ohio — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-01.

Ohio runs a hybrid system. Counties may (a) judicially foreclose the state’s first lien for delinquent taxes under right-of-redemption rules in R.C. Chapter 5721; (b) sell transferable tax lien certificates to private investors (R.C. 5721.30–5721.43); or (c) use an expedited administrative foreclosure before a county board of revision for “abandoned land,” which can transfer title directly to a land bank without any sale (R.C. 323.65–323.79). That third path is the locus of Ohio’s tyler-v-hennepin-county exposure, because a direct transfer historically returned no surplus equity to the former owner.

0. Identity & Classification

  • Recording unit: county (count: 88) — Source: codes.ohio.gov (county-based auditor/treasurer scheme throughout Title 57).
  • Tax sale type: hybrid — judicial foreclosure of state tax lien (R.C. 5721.18) + redeemable tax lien certificates (R.C. 5721.30+) + forfeited-land sale (R.C. Ch. 5723).
  • Tax foreclosure process: both — judicial (common pleas, R.C. 5721.18) and administrative/expedited (county board of revision, R.C. 323.65–323.79).
  • Mortgage foreclosure process: judicial (court order of sale; equity of redemption cut off at confirmation, R.C. 2329.33).
  • Selling authority: county sheriff (execution sales) / county auditor (forfeited-land sales, R.C. Ch. 5723); county treasurer issues tax certificates.
  • Statutory home: Title 57 (Taxation), Ch. 5721 Delinquent Lands — https://codes.ohio.gov/ohio-revised-code/chapter-5721 ; Ch. 5723 Forfeited Lands — https://codes.ohio.gov/ohio-revised-code/chapter-5723 ; R.C. 323.65–323.79 (board of revision) — https://codes.ohio.gov/ohio-revised-code/section-323.65
  • Tyler v. Hennepin compliance: reformed_post_Tyler / unclear — The ordinary foreclosure-sale path does return residue to the former owner (R.C. 5721.20). The direct-transfer-to-land-bank path under R.C. 323.78 was held by the federal Sixth Circuit in harrison-v-montgomery-county (997 F.3d 643 (6th Cir. 2021)) to present a viable federal takings claim where surplus equity vanished; post-Tyler, the Ohio Supreme Court in us-bank-trust-v-cuyahoga-county (2023-Ohio-1063) upheld the expedited process as supplying adequate process (redemption, transfer to common pleas, appeal). Full legislative reconciliation is still settling — see needs_verification.

1. Tax Sale Mechanics

  • What is sold: either a tax lien certificate (R.C. 5721.30+) or, after judicial foreclosure, the deed at sheriff’s sale (R.C. 5721.19). Forfeited land (never redeemed, no bid at foreclosure) is later sold by the auditor (R.C. Ch. 5723).
  • Bidding method: certificates — bid-down interest at public auction, or negotiated/block sale; foreclosure sales — highest bid at sheriff’s sale. Source: https://codes.ohio.gov/ohio-revised-code/section-5721.30
  • Interest or penalty (certificates): certificate rate of interest = simple interest per year bid by the winning bidder, statutory maximum 18%/yr, not less than 0%. R.C. 5721.30 — https://codes.ohio.gov/ohio-revised-code/section-5721.30
  • Certificate redemption price (auction): purchase price plus the greater of simple interest at the certificate rate or 6% of the purchase price. R.C. 5721.30/5721.38 — https://codes.ohio.gov/ohio-revised-code/section-5721.38
  • Minimum bid composition (foreclosure sale): court orders sale for the greater of (i) the county auditor’s fair-market value plus costs, or (ii) total taxes, assessments, charges, penalties, interest plus costs. R.C. 5721.19 — https://codes.ohio.gov/ohio-revised-code/section-5721.19
  • Sale frequency / typical month: rolling; sheriff sales scheduled as cases mature (no single statewide sale date). [see needs_verification — typical month]
  • Venue: both in-person and online. Ohio sheriff sales largely migrated to a state-designated online platform. [see needs_verification — platform vendor]
  • Registration & deposit: set by county sheriff / certificate-sale terms. [see needs_verification — uniform deposit %]
  • Subsequent taxes (“subs”): in a certificate sale, the certificate purchase price excludes delinquent taxes already transferred by prior certificate sales; certificate holders may purchase subsequent certificates on the same parcel. R.C. 5721.30 — https://codes.ohio.gov/ohio-revised-code/section-5721.30

2. Right of Redemption → see right-of-redemption

  • Pre-sale right (foreclosure path): exists. Delinquent land “may be redeemed before foreclosure proceedings have been instituted,” and even after, up until the filing of the entry of confirmation of sale, by paying all taxes, assessments, penalties, interest, charges then due plus costs. R.C. 5721.25 — https://codes.ohio.gov/ohio-revised-code/section-5721.25
  • Post-sale period: none for the tax-foreclosure deed — the equity of redemption is extinguished at confirmation of sale; there is no statutory post-confirmation redemption window. R.C. 5721.25, 5721.19 — https://codes.ohio.gov/ohio-revised-code/section-5721.25
  • Certificate path redemption: owner/interested party may redeem at any time before the certificate holder pays the treasurer to initiate foreclosure (paying redemption prices only); after initiation and before the entry of confirmation, redemption requires redemption prices plus interest, fees, attorney’s fees and costs. Installment plans available for one year from the certificate sale (or until decree). R.C. 5721.38 — https://codes.ohio.gov/ohio-revised-code/section-5721.38
  • Who may redeem: broad. The Ohio Supreme Court held “any person entitled to redeem the land” includes mortgagees / lienholders, not just the owner-debtor. in-re-foreclosure-of-liens-2014 (2014-Ohio-3656) — http://www.courtnewsohio.gov/cases/2014/sco/0902/130713.asp
  • Amount formula: all delinquent taxes, assessments, penalties, interest, charges then due and unpaid plus costs of any proceeding instituted. R.C. 5721.25 — https://codes.ohio.gov/ohio-revised-code/section-5721.25
  • Certificate-holder premium: at redemption, greater of certificate-rate interest or 6% of purchase price (auction certificates). R.C. 5721.30 — https://codes.ohio.gov/ohio-revised-code/section-5721.30
  • Extinguishment: confirmation of sale (foreclosure) or expiration/transfer under board-of-revision alternative redemption period (R.C. 323.78). https://codes.ohio.gov/ohio-revised-code/section-323.78
  • Special tolling (minors/incompetents/SCRA/bankruptcy): [see needs_verification — Ohio-specific statutory disability tolling for tax redemption].

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

  • Belongs to: former owner (residue after the tax debt and costs), via a priority waterfall.
  • Claim waterfall (foreclosure sale, R.C. 5721.19): (1) costs of the proceeding; (2) 5% of taxes/assessments to the delinquent-collection fund; (3) taxes, assessments, charges, penalties, interest to the taxing districts proportionally; (4) other liens by priority; (5) residue to the owner. Source: https://codes.ohio.gov/ohio-revised-code/section-5721.19
  • Filing venue: county that held the sale — clerk of the common pleas court notifies the owner of residue; the county treasurer holds the funds. R.C. 5721.20 — https://codes.ohio.gov/ohio-revised-code/section-5721.20
  • Claim deadline (foreclosed land residue): owner has three years from the date of receipt of the funds by the treasurer to demand payment; the clerk must notify per R.C. 2329.44(A). R.C. 5721.20 — https://codes.ohio.gov/ohio-revised-code/section-5721.20
  • Escheat / forfeiture: if unclaimed within three years, the residue is forfeited to the delinquent tax and assessment collection fund (R.C. 321.261) or, in counties with a land-reutilization corporation, to that corporation’s fund (R.C. 321.263). R.C. 5721.20 — https://codes.ohio.gov/ohio-revised-code/section-5721.20
  • Forfeited-land sale excess (R.C. Ch. 5723): auditor charges the treasurer with the excess in the name of the supposed owner; owner must demand within one year from the day of sale; the treasurer may interplead in common pleas to determine the proper owner. R.C. 5723.11 — https://codes.ohio.gov/ohio-revised-code/section-5723.11 (NOTE: older codifications stated six years; current text retrieved 2026-06-01 states one year — see needs_verification re: effective date).
  • Direct-transfer-to-land-bank path (R.C. 323.78): property may be transferred by deed directly to a municipality, township, county, school district, CDO, or county land reutilization corporation “without appraisal and without a sale,” regardless of value vs. debt; if the receiving entity later sells for more than tax debt plus foreclosure/administrative costs, the excess must be delivered to the county treasurer within 45 days and handled as surplus. R.C. 323.78 — https://codes.ohio.gov/ohio-revised-code/section-323.78
  • Third-party recovery (surplus recovery agents):
    • fee_cap_pct: [see needs_verification — Ohio has no general statutory percentage cap for tax-surplus recovery agents that I could verify against a primary source]
    • licensing_required: [see needs_verification — verify whether private-investigator/finder licensing applies]
    • assignment_of_claim_allowed: [see needs_verification — verify assignability of R.C. 5721.20 residue claim]
    • cooling_off / disclosure / prohibited_practices: [see needs_verification]
    • citation: none verified.
  • Notice to former owner required: yes — clerk must notify the owner of any residue (R.C. 5721.20) and certified-mail notice to owners/lienholders precedes foreclosure (R.C. 5721.18(B)). https://codes.ohio.gov/ohio-revised-code/section-5721.20

4. Mortgage Foreclosure

  • Process: judicial. Mortgagee sues in common pleas; court enters judgment and order of sale; sheriff sells.
  • Timeline: appraisal (sheriff’s three-appraiser appraisal historically), publication of sale notice, sale, then confirmation by the court. [see needs_verification — exact statutory day-counts for notice of sale vs. confirmation].
  • Minimum-price floor: property generally may not be sold for less than two-thirds of the appraised value at the first sale (R.C. 2329.20). [see needs_verification — second-sale/no-minimum exceptions and 2329.20/2329.52 cross-reference].
  • Reinstatement right: [see needs_verification — Ohio has no general statutory reinstatement statute; typically governed by loan contract / FHA].
  • Redemption after sale: equity of redemption exists until confirmation of the sale; debtor may redeem before confirmation by depositing the judgment amount, costs, and 8%/yr interest on the purchase money from sale to deposit. R.C. 2329.33 — https://codes.ohio.gov/ohio-revised-code/section-2329.33
  • Deficiency judgment: allowed, but a money judgment on a mortgage securing a 1–2 family dwelling used as a home is unenforceable as to any deficiency after two years from confirmation of the judicial sale. R.C. 2329.08 — https://codes.ohio.gov/ohio-revised-code/section-2329.08
  • Surplus distribution: sale proceeds applied to costs, taxes, the foreclosing lien, junior liens by priority, then residue to the owner (general execution-sale distribution, R.C. 2329.44). [see needs_verification — confirm R.C. 2329.44 citation text].
  • Sale officer: sheriff.

5. Sale Procedure Playbooks

  • Tax foreclosure (judicial) — ordered steps → see treasurer-sale, sheriff-sale:
    1. Auditor certifies delinquent land list; one year later issues delinquent land tax certificate to the prosecutor (R.C. 5721.13). https://codes.ohio.gov/ohio-revised-code/section-5721.13
    2. After one year delinquent-certified (or two years for in-rem path), county prosecutor files foreclosure in common pleas (R.C. 5721.18). https://codes.ohio.gov/ohio-revised-code/section-5721.18
    3. Title search; certified-mail notice to last-known owner + lienholders + publication.
    4. Court enters finding of amounts due and orders sale at statutory minimum (R.C. 5721.19).
    5. Sheriff’s sale; owner may redeem any time before confirmation (R.C. 5721.25).
    6. Confirmation cuts off redemption; proceeds distributed; residue to owner (R.C. 5721.19, 5721.20).
  • Tax certificate path — ordered steps:
    1. Treasurer sells certificate (auction bid-down interest, or negotiated/block) (R.C. 5721.31–5721.33).
    2. One year from certificate sale must elapse before the holder may request foreclosure (R.C. 5721.37). https://codes.ohio.gov/ohio-revised-code/section-5721.37
    3. Owner may redeem at escalating cost up to confirmation (R.C. 5721.38).
    4. Foreclosure → sheriff’s sale → confirmation.
  • Board-of-revision (expedited) path: auditor/treasurer certifies abandoned land; complaint to the county board of revision; notice; alternative redemption period under R.C. 323.78; if unredeemed, sale or direct transfer to a land bank without sale. https://codes.ohio.gov/ohio-revised-code/section-323.78
  • Notice requirements: publication once a week for three consecutive weeks in a newspaper of general circulation OR once + county/court website posting for one year; certified-mail notice (within 30 days of filing) to each last-known owner, lienholder, or interested party (R.C. 5721.18(B); form per R.C. 5721.181). https://codes.ohio.gov/ohio-revised-code/section-5721.18
  • Upset bid / confirmation: Ohio uses court confirmation (not a North-Carolina-style upset-bid window). Equity of redemption survives until confirmation. R.C. 2329.33 / 5721.25.
  • Payment terms: set by sale officer (sheriff) terms. [see needs_verification — deposit and balance deadlines].
  • Deed issued: sheriff’s deed (foreclosure) or auditor’s deed (forfeited land). Treated as conveying the foreclosed interest; not a warranty deed.

6. Due Process & Notice → see due-process-notice

7. Title & Marketability

  • Deed warranty level: none — sheriff’s/auditor’s deed conveys only the foreclosed/forfeited interest (no covenants of warranty).
  • Marketable immediately? Generally no as a practical matter; title insurers commonly require a quiet-title action or seasoning before insuring. [see needs_verification — title-insurer practice citation].
  • Quiet title required? Often, in practice. [see needs_verification — confirm with primary authority].
  • SOL to challenge deed: [see needs_verification — Ohio statute of limitations to vacate a confirmed tax-foreclosure sale].
  • Title insurance availability: available after curative steps; varies by underwriter. [see needs_verification].
  • Common defects: defective notice to owner/lienholder; unredeemed federal tax lien (120-day federal redemption); bankruptcy stay; heirs/unknown interests.

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
harrison-v-montgomery-county2021surplus / due_process6th Cir. (997 F.3d 643): owner whose tax-delinquent home was transferred to a county land bank with no return of ~$3K surplus equity may bring a federal §1983 takings claim in federal court; Ohio’s direct-transfer route extinguishes surplus equity with no auction.https://law.justia.com/cases/federal/appellate-courts/ca6/20-4051/20-4051-2021-05-11.html
us-bank-trust-v-cuyahoga-county2023due_process / sale_procedureOhio Supreme Court (2023-Ohio-1063): upheld the expedited board-of-revision foreclosure; the statutory scheme (redemption, transfer to common pleas, appeal) supplies adequate process; mandamus denied; a mortgagee acquiring the mortgage after adjudication lacked standing.https://www.supremecourt.ohio.gov/rod/docs/pdf/0/2023/2023-Ohio-1063.pdf
in-re-foreclosure-of-liens-20142014redemptionOhio Supreme Court (2014-Ohio-3656): “any person entitled to redeem the land” in a tax foreclosure includes mortgagees/lienholders, not just the owner-debtor (broader than the “debtor”-only mortgage redemption statute).http://www.courtnewsohio.gov/cases/2014/sco/0902/130713.asp
tyler-v-hennepin-county2023surplusU.S. Supreme Court (598 U.S. 631): government retention of surplus equity above the tax debt is an unconstitutional taking; the controlling landmark Ohio’s land-bank/direct-transfer scheme must reconcile with.https://www.supremecourt.gov/opinions/22pdf/22-166_8n59.pdf
freed-v-thomas2023surplus6th Cir.: just compensation for tax-foreclosure home-equity taking is the surplus the government kept, not the property’s full fair market value (Michigan facts; governs Ohio’s circuit).https://www.inversecondemnation.com/inversecondemnation/2023/09/ca6-in-home-equity-theft-taking-just-compensation-is-the-excess-the-goverment-kept-not-the-value-of-.html

Topic coverage: redemption ✓ (In re Foreclosure of Liens 2014), surplus ✓ (Harrison; Tyler; Freed), due_process ✓ (US Bank Trust; Harrison), sale_procedure ✓ (US Bank Trust).

9. Edge Cases (state-specific notes)

10. Operations

  • Where records live: county auditor (valuation, delinquent list, forfeited-land/auditor’s deed), county treasurer (taxes, tax certificates, surplus funds), county clerk of courts (foreclosure cases, residue notice), county sheriff (sale execution), county recorder (deeds).
  • Public portals: Ohio Revised Code — https://codes.ohio.gov/ohio-revised-code/chapter-5721 ; county fiscal-officer forfeited-land pages, e.g., Cuyahoga County — https://cuyahogacounty.gov/fiscal-officer/departments/real-property/forfeited-lands
  • Typical costs: filing costs, publication, sheriff fees, certificate purchase price + up to 18%/yr; surplus claims free to file with treasurer/clerk.
  • Typical timelines: ~1 year delinquent-certification wait before judicial foreclosure (2 years for in-rem); 1 year for certificate-holder foreclosure; 3-year window to claim foreclosure residue (R.C. 5721.20); 1-year window for forfeited-land excess (R.C. 5723.11).
  • Key agencies: County Auditor, County Treasurer, County Prosecuting Attorney, County Board of Revision, County Land Reutilization Corporation (land bank), County Sheriff, Clerk of Courts.
  • Useful forms: R.C. 5721.181 statutory notice form; county surplus/residue claim forms. [see needs_verification — link a live county claim form].

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