Ohio allows deficiency judgments after foreclosure:
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Never
Saying deficiency judgments are 'never' allowed in Ohio is factually incorrect; Ohio is not a non-recourse state and does not prohibit lenders from pursuing remaining balances after foreclosure.
Always automatically
Deficiency judgments in Ohio are not automatic — a lender must affirmatively file a separate legal action within the 2-year statutory period and obtain a court order; they do not arise simply by operation of the foreclosure itself.
Yes, within 2 years if the sale price is less than debt
Only for commercial properties
Ohio law does not restrict deficiency judgments to commercial properties; they are available for residential mortgage loans as well, subject to the same 2-year limitation period under ORC § 2329.08.
Why is this correct?
Ohio Revised Code § 2329.08 explicitly permits a creditor to pursue a deficiency judgment within two years of the date of the confirmation of the foreclosure sale, provided the sale proceeds were insufficient to satisfy the outstanding mortgage debt. This statutory window gives lenders a meaningful but time-limited opportunity to recover losses while protecting borrowers from perpetual liability. The 2-year period begins running from the court's confirmation of the sale, not the sale date itself.
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