Posted by JT-IN on June 16, 2005 at 10:02:21:
Dale:
All Liens erased…? Yes and NO… How’s that for an answer…
If the foreclosure is properly prosecuted, meaning that all parties having an interest or potential interest in the real property, are named and given proper notice, and the sheriff then offers property for sale as advertised, and it sells to the highest bidder, and the Judge confirms the sale, (decree in foreclosure and order for Deed and distribution), then the title should be clear to the new purchaser.
However, if the Atty were to make as much as a clerical error, the title company who ran the original title report were to have missed a lien or interested party, then those liens survive the sale. The only way to know is to get a professional opinion about the title, and a committment for TI, upon the issuance of the Decree. In 98 or 99 out of 100 cases, you could assume all to be correct, proceed blindly and you would be ok… It is that one case out of 100… that will jump up and bite you. So have the title and foreclosure suit reviewed by someone who is in the title business AND familiar with Ohio foreclosure law… Then you can be reasonably assured that you can proceed with less risk…
Of course this process varys greatly from county to county throughout Ohio. There are some counties that require the foreclosing Atty to issue a PJR… Preliminary Judicial Report, and offer title insurance to any 3rd party purchaser. This certainly takes the risk out of it, but not many counties do so…
What county are you located…?
JT-IN