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Administrative Foreclosures

Administrative Foreclosures

Ohio Supreme Court Green Lights Fast-Track Process That Gives Homes to Developers But Fails to Compensate Owners and Taxpayers

By Lucia Walinchus | June 25, 2020

In 2019, Taxpayers lost at least $11.25 million, While Homeowners and Banks lost up to $77 Million, But Title to Revamped Houses Remains Sound

This article provided by Eye on Ohio, the nonprofit, nonpartisan Ohio Center for Journalism. Please join our free mailing list as this helps us provide more public service reporting.     The Ohio Supreme Court has ruled that an unusual foreclosure process that can result in people’s homes being sold without compensation for their equity should remain legal in the Buckeye State. However, in a recently released opinion the state justices couldn’t agree on the reasoning behind it. 

Justice Judith French authored the lead opinion, joined by Justices Michael Donnelly and Robert Hendrickson. (Justice Robert A. Hendrickson, of the Twelfth District Court of Appeals, replaced Justice Melody Stewart.) They declined to comment on the constitutional issues presented by the case involving what are called “administrative foreclosures,” saying that they would not stop the process because the law governing these procedures was not “patently and unambiguously” unconstitutional. 

Not to be confused with expedited foreclosures, administrative foreclosures send abandoned properties to a county’s board of revision, a committee that usually considers home values for property owners wanting to contest their taxes.

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