Ohio Supreme Court: Homeowners Can Still Challenge Foreclosure After Home Is Sold

The Ohio Supreme Court has issued a unanimous ruling that could have a major impact on homeowners facing foreclosure. The court ruled Wednesday that a homeowner who unsuccessfully tries to stop a foreclosure can still appeal the case after the home has been sold, and may be able to recover money if the foreclosure is later found to have been improper.

Until now, several Ohio appeals courts had ruled that once a foreclosed home was sold and the proceeds distributed, any appeal was essentially over.
The Supreme Court disagreed.

Writing for the court, Justice Daniel R. Hawkins said Ohio law allows homeowners to seek financial restitution, even if they cannot get the property back.

The ruling means that while a completed foreclosure sale remains valid, homeowners who successfully challenge the foreclosure on appeal may still be entitled to compensation from the lender.
The decision stems from the case of Grace Doberdruk, whose home was sold at a sheriff’s auction after she was unable to post a bond that would have delayed the sale while her appeal moved forward.

An appeals court dismissed her case, saying it was moot because the property had already been sold. The Ohio Supreme Court reversed that decision, sending the case back to the Eighth District Court of Appeals to determine whether the foreclosure was proper and whether Wells Fargo Bank could owe Doberdruk restitution.

Legal experts say the ruling clarifies that Ohio homeowners do not automatically lose all legal options simply because a foreclosure sale has already taken place.

The decision applies statewide and provides new guidance for future foreclosure cases across Ohio.