This is the html version of the file http://www.com.ohio.gov/SavetheDream/docs/RentalsAndForeclosure.pdf.
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State of Ohio
Department of Commerce
Kimberly A. Zurz
Director
IS YOUR LANDLORD IN FORECLOSURE?
Important Information for Tenants to Know
1.
What happens if I am renting a house or apartment that is in foreclosure?
In Ohio, foreclosure is a legal process. A complaint (lawsuit) must be filed in order for any lender to
legally take the house or apartment away from an owner. The filing of a complaint is only the
beginning of the legal process. Your landlord still owns the home or apartment until a court grants a
judgment in foreclosure and the property has been sold at a sheriff’s sale.
2.
How will I know if a foreclosure has been filed or a judgment in foreclosure has been granted?
Although there is no guarantee, the plaintiff should name you as the tenant in the foreclosure
complaint. Often this is done generically, such as “Jane or John Doe, unknown tenant or occupant
at….†Legally this may not be adequate notice to you (see #10 below). If you get mail addressed this
way, you should save it so that you have the information available. This information may be helpful
if you have questions later, seek information on the progress of the case, or seek legal advice. It is
possible that you will also receive a copy of the foreclosure judgment, but it is highly unlikely.
3.
Can I find out what is happening in the foreclosure case?
YES. Your local Clerk of Courts for the County Court of Common Pleas should have that
information available. There is a Clerk of Courts in each of Ohio’s 88 counties. Many Clerks now
have case information online. To get information about the Clerk of Courts in your county, go to
http://www.occaohio.com/countylist.aspx?qname=All.
4.
Do I need to keep paying my rent once the foreclosure is filed?
YES. Your landlord still owns the property until there is a judgment and sale (see #9 below). If you
stop paying your rent, your landlord could file an eviction action in court for nonpayment of rent.
However, each person’s situation is different, and there are many practical issues you may want to
consider in making a decision to stop paying rent or to move. You may be in the best position to
decide whether your landlord will take legal action against you.
5.
Can I move-out and terminate or break the lease after the foreclosure is filed?
In most situations the answer will be NO and depends on the terms of your lease agreement. The
foreclosure filing does not allow you to break your lease to move. If you unlawfully break your lease,
your landlord could sue you for money damages for leaving early. If you decide that you want to
move, you may want to negotiate with your landlord to terminate your lease early. Ifyou do negotiate
something, make sure to get the agreement in writing and have everyone, including your landlord,
yourself, and anybody else on the lease sign the agreement.
6.
Will I be able to remain in the home or apartment once the foreclosure is completed?
PROBABLY NOT. The answer depends on whether the new owner, who purchased the property
at the foreclosure sale, wants to keep you as a tenant. Typically the lender (the plaintiff) buys the
property back at the sheriff’s sale. Most lenders have no interest in becoming a landlord and
currently the law does not require them to become your new landlord.
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7.
How much time will I have to move?
This question is much more complex than it would appear. It depends on many factors that can
vary from county to county. There is no timeline set out in the law. Your local sheriff’s
department may be able to give you some general timelines, but will probably not be able to give
you a specific date. Likewise, if the new owner is now required to file an eviction action in court,
the time varies from county to county. To find out information about your local sheriff’s
department, go to http://www.buckeyesheriffs.org/Ohio%20Sheriffs.htm.
8.
Is my landlord still required to perform his/her obligations while the property goes through
the foreclosure process?
YES. Until the court approves the sale, your landlord must still fulfill all of his/her obligations
under the lease and law, just like you must continue to pay rent. Therefore, your landlord is still
responsible for making repairs, paying any utilities he/she agreed to pay, etc. The fact that a
foreclosure was filed is NOT an excuse for the landlord to stop performing his/her obligations. If
you are having difficulty getting your landlord to fulfill his/her obligations, you may want to seek
legal advice by contacting your local legal aid program. To find the legal aid that serves your
county, go to http://www.ohiolegalservices.org/programs or call 1-866-LAW-OHIO (1-866-529-
6446).
9.
Must I keep paying rent to my landlord once the foreclosure judgment is granted and the
sale of the property has been approved by the court?
NO. At this point your landlord no longer owns the property and is not entitled to collect rent. Of
course, as stated above, you may not know when this occurs, so you may want to check the
progress of the case with your local county clerk. The key issue is whether a “Confirmation of
Sale†has been filed with the court, because this document is what cuts off all the
owner/landlord’s rights. Do not take your landlord’s word that all has been worked out and there
is nothing to worry about.
10.
Can the Court evict me in the foreclosure action?
IT DEPENDS. If you have been personally named (by your name, NOT as a “Jane/John Doe,
Unknown Tenantâ€Â) and received a copy of the complaint, the answer is “yes.†If you have not
been properly personally named (for instance only as “Jane/John Doe, Unknown Tenantâ€Â) and
served, the answer is “no.†However, the new owner only needs to serve you with a three-day
notice and after the three days file a separate eviction action in court in order to force you to
leave, so you still may not have much time to move. If a separate eviction action is filed, a
hearing must be scheduled on the eviction. You should go to court and try to negotiate a date for
you to move. If not, and you are evicted, a time would be set by the court for you to move.
11.
Is there any place I can get more information or legal assistance?
YES. Your local legal aid program should be able to provide you with more specific information
based on your location and the particular facts of your case. In some instances, they may be able
to provide direct legal representation. To find and contact the legal aid program in your area, go
to http://www.ohiolegalservices.org/programs or call 1-866-LAW-OHIO (1-866-529-6446).
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