Re: Question for Why Chat & Poor lawyer!

Posted by poor lawyer (24.88.34.92) on August 11, 2002 at 22:39:52:

In Reply to: Re: Question for Why Chat & Poor lawyer! posted by Why Chat on August 11, 2002 at 22:11:10:

I am not aware of, and I doubt the existence of, any statute that specifically states that a homestead may be foreclosed or partitioned. Instead, the statutes would be general foreclosure and partition statutes with other statutes exempting homesteads.

With the exception of medical debts, the Ohio statute states that a lien is not effective against the first $5000 of a debtor's homestead. (or all of it if the total value of the property is %5000 or less) What this means is that upon a foreclosure or sale of the exempted property the debtor is entitled to $5000. If the property is purchased at public auction for less than $5000, then the debtor gains the entire proceeds from the sale, less court costs. The succesful bidder must then pay the debtor sufficient sums so that the debtor has received $5000. All in all, it means that the debtor is entitled to $5000 or the value of the property, whichever is less. It does not prevent the foreclosure and sale of a homestead.

This is a pretty standard homestead exemption statute.

In the case of medical debts, one parcel or item uesd as a residence may be exempted. In this case, the lien cannot be enforced through foreclosure or sale until the property is transferred in accord with the statute. The first $5000 of the exempted property is protected against the lien, just as with the general exemption.

Note that the statute specifically allows the creation of a lien against a homestead, except on the first $5000.

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