In First Merchant Bank v. Glover, a Darke County Court recently ruled Ohio foreclosure statute 2329.191 unconstitutional as it violates equal protection and the separation of powers.Under 2329.191, a foreclosing party is required to file a preliminary judicial and final judicial report within certain time limits. A judicial report is a statement of the current record title of the property being foreclosed upon. The Ohio law requires that the foreclosing party must submit a judicial report prepared “by a duly licensed title insurance agent on behalf of a licensed title insurance company or by a title insurance company that is authorized by the department of insurance to transact business in this state.” (ORC 2329.191(B))

In his decision, Judge Hein took issue with the requirement that a judicial report must be prepared by a licensed title insurance agent and not by an attorney, as had been the historical practice. As a result of the ruling, foreclosures taking place in Darke County, presumably, can proceed with judicial reports prepared by individuals other than licensed title insurance agents. It has yet to be seen whether the decision will be upheld in Appellate Court but, presently, the decision creates an alternative method for foreclosing parties in Darke County to provide a judicial report.

This legal variance emphasizes the importance of contacting experienced counsel when dealing with the foreclosure process, whether you are a borrower or a lender. The attorneys at Ritter & Randolph, LLC have experience representing both lending institutions and borrowers throughout the foreclosure process in Ohio, Kentucky and Indiana.