CLEVELAND, Ohio (AP) — The Ohio Supreme Court has ruled that a foreclosure process that sells homes without compensating owners for their equity is legal.
At issue before the court was a process known as administrative foreclosures, according to the Ohio Center for Investigative Journalism in an article transmitted via cleveland.com.
Elliot Feltner, a Cleveland landowner, sued the Cuyahoga County Board of Revision in 2018 arguing that the process was an unconstitutional government seizure without compensation.
The process sends abandoned properties to the county board of revisions who can send the properties to the local land bank, which can clear debts.
The center previously reported that in Montgomery and Cuyahoga Counties in 2019, local land banks wiped out $11.2 million in tax liens that cost homeowners and banks $77 million in equity.
The court last month rejected Feltner’s argument “because the board of revision did not patently and unambiguously lack jurisdiction when it proceeded in the foreclosure action at issue,” according to Justice Judy French.
The administrative foreclosure process was an important way to prevent blight, said attorney Gus Frangos, the primary drafter of the expedited foreclosure process and who also runs its largest program in Cuyahoga County.