By David C. Nalley, Esq.

Reisenfeld & Associates, LLC

USFN Member (IN, KY, OH, WV)

            New changes to Ohio’s address confidentiality program will impact foreclosures on covered properties.

In 2016, Ohio enacted Revised Code Section 111.42 et seq., which created “Safe at Home” – a confidentiality program to assist victims of domestic violence, stalking, human trafficking, rape, or sexual battery by shielding their personal information from public records. The program was intended to help these victims avoid being located by their assailant through public records. Through the program, applicants who are approved are given a substitute address through the office of the Ohio Secretary of State to use for utility bills, voter registration, school registration, and other purposes.

            Beginning April 29, 2022, this law was expanded significantly by including real property records, as well as records of the Clerk of Courts. These new restrictions will have a significant impact on any defaulted loans that are on a property that has been subjected to these new privacy rules.

            The first impact on foreclosures will be when the creditor conducts a title examination. If a program participant submits a Real Property Confidentiality Notice to the county, the county recorder (and auditor, treasurer, and engineer) may not disclose to any person who requests it the program participant’s name, address, or any other identifying or contact information. This includes the parcel number or legal description of the property. Essentially, the participant’s records must no longer be found through a public search. The new version of the law provides that a party seeking to conduct a title examination regarding the property must apply to the secretary of state for written authorization to access the records. The application must identify the purpose for which the exam is sought, and the applicant must agree that if granted access the information obtained will be kept confidential. It is anticipated that on loans involving a property subject to this law, the timeline for conducting and completing title work will be substantially longer as the examiner has to wait for both approval from the secretary of state, and notification from the secretary to the county recorder, engineer, auditor and treasurer, all whose records may be needed to complete the examination.

            The bigger challenge may come after the title work is complete and counsel moves forward with a Judicial Foreclosure action.  New provisions of the law provide that the clerk of courts, like the recorder, has an obligation to keep confidential information that is subject to a real property confidentiality notice under this law. However, Ohio foreclosures require notice to all parties who claim an interest in the property. Unfortunately, the new law does not address this issue, nor does it address things such as Service by Publication or the sheriff’s advertisement of sale, both of which must include names of parties as well as legal descriptions. It may be up to the Common Pleas Courts to decide how to fill these gaps, as these will be cases of first impression.

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