(WKBN) — A ruling Tuesday by the Ohio Supreme Court has set parameters for the way in which a bank can put a claim on a delinquent property that has been transferred to county land banks.
A recent Ohio Supreme Court ruling looked at the way US Bank tried to get money back from a property that was delinquent in taxes and turned over to a county land bank.
The Court ruled that the bank did not pursue remedies through the state court system before trying to intervene and recoup lost money.
The case surrounds three different issues that came up in Lucas, Cuyahoga and Summit counties where delinquent properties were seized.
The bank claimed that the transfer of the property was an unconstitutional “taking” of the property because in each case the market value of the property was more than the back taxes. The bank argued that it is entitled to the difference.
The Court said that in the Summit and Cuyahoga County cases, the bank had the opportunity to contest the transfer at the local level but didn’t and in the Lucas County case, the bank’s challenge was rejected by the local court because the bank did not own the property until a year after it was granted to the land bank and the prior owner did not contest the transfer.
Landowners and “lienholders” such as financial institutions are notified of the county’s intent to foreclose. Those parties are also notified of the hearings to attempt to transfer the property to the land banks.
“US Bank has not shown that it could not have protected its security interest in the properties through the available court proceedings,” the opinion stated.