HB223 Summary

• Establishes summary foreclosure procedures for vacant and abandoned residential properties in default on mortgage loans, allowing expedited court proceedings when properties meet specific abandonment criteria (no visible occupancy, utility disconnection, sealed/vandalized condition, accumulated debris, missing furnishings, or owner written intent to abandon).

• Creates a two-auction system for residential property foreclosures: first auction with two-thirds appraised value minimum bid, and second auction with no minimum bid if property unsold, with 7-30 day interval between auctions and deposit requirements of $5,000-$10,000.

• Establishes procedures for unoccupied blighted parcels allowing municipalities to file complaints in municipal court for owner remediation, with options for lienholders to remediate and receive liens, and court-ordered sale free and clear of liens to qualified bidders committed to remediation within 12 months.

• Extends title transfer procedures in judicial sales to include confirmation of sale serving as automatic deed transfer after 14 days if sheriff fails to prepare formal deed, with immediate county auditor notification for tax record transfer.

• Sunsets blighted parcel sale provisions (sections 3767.51-3767.56) on December 31, 2019, while keeping vacant and abandoned residential property foreclosure procedures permanent.