Committee adopts amendment modernizing foreclosure advertising, proponents say changes aid sales and neighborhoods

The Senate Judiciary Committee adopted an amendment to Senate Bill 135 on Wednesday that proponents said would modernize Ohio's foreclosure process by clarifying private selling officers' (PSO) duties, adjusting conflict-of-interest provisions and allowing online as well as print advertising for sheriff and PSO sales.

Vice Chair Reynolds moved to adopt Amendment 4506-2; the committee adopted it without objection. Committee staff and witnesses said the amendment resulted from months of negotiations with stakeholders including the Ohio Auctioneers Association, Ohio Association of Realtors, the Ohio Bankers League, the Ohio Mortgage Bankers and the Ohio Credit Union League.

Tony Fiore, legislative counsel for auction.com, and several auctioneers and realtors told the committee the bill aims to make the PSO process available in all counties and to speed appraisals and sales timelines. "Use of PSOs in all 88 counties, lower cost, fewer days, and shorter online sale periods are all positive changes to Ohio's foreclosure process and real estate market health," Tony Fiore said.

Proponents said the amendment shortens required appraisal submission timelines from 21 to 14 days, requires reasonable-cost newspaper publication for one week while allowing the second and third weeks of notice to be posted on county or PSO websites, and preserves requirements that appraisers or freeholders be county residents and licensed professionals.

Speakers representing auctioneers and auction marketplaces argued the changes would increase third-party buyers, produce higher sale prices and reduce the time properties sit vacant — which they said benefits both defendants and surrounding neighborhoods. "When we find the buyer who wants the real estate to live in, rather than an investor, that benefits neighborhoods," said Chris Davis, an auctioneer and real-estate agent.

The amendment also clarifies that private selling officers must be independent from judgment creditors and lenders and may hire title or insurance professionals to perform work as needed while performing their statutory duties.

The committee heard proponent testimony from representatives of the Ohio Auctioneers Association, Auction.com and related industry groups. Members adopted the amendment and recorded the hearing as the fourth hearing on the bill; no final floor action was taken during the session.

Supporters said the reforms would reduce administrative costs for sheriffs and counties, increase marketing exposure to online buyers and create more efficient foreclosure sales across counties that do not currently use PSOs.