Back
CLIENT ADVISORY - April 22, 2010
New Title Industry Form Paves Way for Cuyahoga County, Ohio Foreclosures To Proceed As Before
by Michael I. Rich, Esq., Gregory A. Anglewicz, Esq., Arthur D. Smialek, Esq., and Benjamin N. Hoen, Esq.
On April 15, 2010, the Ohio Department of Insurance approved a new form of the Preliminary Judicial Report (PJR) and Extended Coverage Endorsement for the PJR. The new form and endorsement was primarily aimed at placating the Cuyahoga County Magistrates that felt the old forms did not properly protect bidders at the Sheriff’s Foreclosure Auction. This was due to a change in October of 2009 to exclude Creditors’ Rights from coverage under the PJR. Any foreclosures filed since October, 2009 with a PJR that excluded Creditors’ Rights, was not allowed to go to Final Judgment and essentially has been on hold.
Now that the new form has been approved by the Insurance Department and the Ohio Title Insurance Rating Bureau (OTIRB), the PJR’s and the Extended Coverage Endorsement can be issued without the exclusion. While the new form will be used in all counties in Ohio going forward, the Endorsement is expected to only be used in Cuyahoga County. There is a charge of $.50 per $1000 of the amount of coverage stated in the PJR. This is in addition to the rate charged for the PJR itself, which has not changed. There is a minimum charge of $50 for the endorsement.
Once the amended or replaced PJR is submitted, it is anticipated that Final Judgment should be received in approximately 30 days. The Final Order of Sale is usually scheduled approximately 60 days after the Final Judgment. While the backlog of foreclosures and the anticipated crush of files that will have amended PJR’s submitted to the Court Clerk could cause the above timelines to be exceeded, we are hopeful that any foreclosure on hold should go to sale in just over 90 days from now. This will be controlled by the Court Clerk. Weltman, Weinberg & Reis Co., LPA is researching our Cuyahoga County files to make sure upcoming Final Judgment hearings that are scheduled will have the amended PJR’s needed to keep them on track. Every file currently on hold will have the amended PJR submitted to get the file back on track.
No other county currently requires a PJR that has already been filed to be amended and replaced, or requires the Extended Coverage Endorsement. Therefore, the fees remain unchanged. All new files will be submitted using the new PJR form. As of April 15th, the old PJR form is considered obsolete and should not be filed.
If you have any questions on this information, please contact Michael I. Rich, Esq., Gregory A. Anglewicz, Esq., Arthur D. Smialek, Esq. and Benjamin N. Hoen, Esq. Michael, Gregory and Arthur are associates who focus on title work and REO closing services for Thoroughbred Title Agency, an affiliate of Weltman, Weinberg & Reis Co., L.P.A. (WWR). Benjamin is an associate focused on foreclosure services within the Real Estate Default Group of WWR.