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17 February 2025 / Benjamin N. Hoen

Ohio House Bill 632: A Game Changer for Mortgage Servicers

Topics: Real Estate

Ohio House Bill 632 (HB 632), currently under review in the House Committee, introduces several proposed reforms that could significantly impact the foreclosure process in Ohio. If passed, this bill will streamline foreclosure proceedings, reduce costs, and provide more efficient mechanisms for mortgage servicers to manage defaulted properties. For servicers, understanding the key provisions of HB 632 and its potential benefits is crucial.  

Traditionally, foreclosure sales in Ohio have been conducted by county sheriffs, often leading to lengthy delays and inefficiencies. Current Ohio foreclosure law permits the appointment of a Private Selling Officer (PSO), but that decision remains at the discretion of the court. HB 632 removes the court’s discretion and mandates the use of PSO’s for all uncontested foreclosure cases. PSO’s, who specialize in property auctions, can conduct sales more quickly and effectively than sheriff’s offices, expediting the foreclosure process and reducing backlog.

Under current Ohio foreclosure law, properties must be appraised before being sold at auction. If an appraisal is not completed within a specified timeframe, delays ensue. HB 632 introduces a provision that allows the county auditor’s appraised value to be used if an appraisal is not conducted within 14 days. This change ensures that foreclosures proceed without unnecessary delays due to appraisal bottlenecks.

Current Ohio foreclosure law mandates that sale notices must be published in newspapers, often incurring substantial costs. HB 632 seeks to lower these expenses by requiring that sale notices be published on the website of the officer conducting the sale, whether the county sheriff or a PSO. This adjustment reduces financial burdens on servicers while maintaining transparency and public notice requirements.

For mortgage servicers operating in Ohio, the passage of HB 632 would be a significant step forward. The proposed changes promise a more efficient, cost-effective foreclosure process that benefits not only servicers but also the broader real estate market. By supporting this bill, servicers can advocate for a system that enhances foreclosure efficiency while reducing unnecessary financial and procedural burdens.
We will continue to monitor the status of HB 632 as it moves through the legislative process. If you have any questions about this topic or would like to learn about Weltman’s real estate default solutions, please connect with shareholder Ben Hoen at any time.

This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.

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