Butler County Clerk of Courts: Foreclosure Actions

Legal Process
A foreclosure is the forced sale of a piece of real estate to repay a debt. A foreclosure occurs when the plaintiff claims that he or she is owed a debt that is secured by a property mortgage. The plaintiff files a foreclosure complaint in the Court of Common Pleas requesting that the property be sold at a sheriff's auction to satisfy the debt. A copy of the foreclosure complaint and a summons are issued by the Clerk of Courts to the property owners and other parties named in the case.

Once the complaint is served, the defendant has 28 days to answer it. If the defendant does not contest the plaintiff's claim by filing an answer within 28 days, the plaintiff may file a motion for default judgment. The court will grant a default hearing, and if the proper evidence is submitted, the court will assume that the plaintiff's allegations are true and will order the sale of the property at a Sheriff's auction. If the defendant wishes to contest the plaintiff's claim after the 28-day deadline, he or she may file a motion for extension of time to file a late answer.

Notice of Dismissal
If the defendant and the property owner (bank, Mortgage Company, Butler County Treasurer, homeowners association or creditor) and/or the plaintiff's attorney agree on a settlement before a sale, the plaintiff's attorney will file a notice of dismissal with the Court. This action stops the foreclosure proceedings and the case is dismissed.

The Sheriff's Sale
If the court affirms the claim of the plaintiff, a Judgment and Decree of Foreclosure will be granted and the plaintiff's attorney will file a Precipe for Order of Sale with the Clerk of Courts. The Clerk of Courts will issue an Order of Sale to the Sheriff, who will then sell the property at an auction to the highest bidder. Prior to the auction date, the sheriff will establish the sale date, appraise the property and advertise the sale.

Sheriff's sales are held at the historic Butler County Courthouse. A listing of current properties is available at the Sheriff's Sale of Real Estate site. Purchasers must pay 10% of the purchase price by check on the day of the sale and the full balance upon confirmation of the sale and delivery of the deed. The balance must be paid with a certified or cashier's check. Checks should be made to the Butler County Sheriff's office.

Distribution of Proceeds
The sale proceeds are used to satisfy the defendant's outstanding debts that have been identified in the complaint. When the sale proceeds are not enough to cover the debts, the Court decides which creditors will be paid. The Clerk of Courts places any funds left over after the debts and court costs are paid in an escrow account. These funds can be distributed to the defendant only by order of the Court and must be requested.

Reclaiming Foreclosed Property
It is possible to recover foreclosed property that has already been sold at a Sheriff's auction. In order to reclaim foreclosed property, the redeeming party must pay the court costs and all outstanding debts on the property within eight days of the sale. To determine the exact amount of the court costs, the redeeming party should contact the Clerk of Courts at (513) 887-3278. After paying the court costs and debts, the redeeming party must file a motion to redeem with the Court of Common Pleas and prepare a journal entry ordering both the redemption and distribution of the funds.

The redeeming party must pay the interest to the purchaser. In addition, the redeeming party must pay the Clerk of Courts 2% poundage on the first $10,000 of the redemption amount and 1% poundage on the remainder of the redemption amount.

After preparing the necessary documentation, the redeeming party must make an appointment with the judge or magistrate assigned to the case at (513) 887-3288 to verify the total amount of the debts, court costs, interest and poundage. After the judge or magistrate authorizes the redemption, the redeeming party must make another appointment to bring in a check for the verified redemption amount. At this appointment, the judge or magistrate will sign an order of redemption, which the redeeming party must file in the Clerk of Courts office.

If the redemption process takes longer than the eight days granted by law, the redeeming party may seek additional time by filing a motion to stay confirmation. Whether additional time is granted is decided by the judge assigned to the case.

FORECLOSURE ACTIONS