Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Ohio, foreclosure is a judicial process that begins when a homeowner defaults on their mortgage payments. The lender, typically a bank, files a lawsuit in court to terminate the homeowner's interest in the property, which was used as collateral for the mortgage loan. The process is governed by Ohio state statutes and rules of civil procedure. If the court rules in favor of the lender, the property can be sold at a sheriff's sale. The proceeds from the sale are used to pay off the mortgage debt, with any surplus returned to the homeowner. If the sale does not cover the full amount owed, the lender may obtain a deficiency judgment against the borrower for the remaining balance. Ohio law provides homeowners with certain rights and protections during the foreclosure process, including the right to receive notice of the foreclosure action and the opportunity to contest the foreclosure in court. Homeowners facing foreclosure in Ohio are often advised to consult with an attorney to explore their legal options, which may include loan modification, bankruptcy, or other foreclosure alternatives.