Representatives David Thomas, Dan Troy Introduce No Profit from Foreclosures Act

State Representatives David Thomas (R-Jefferson) and Daniel Troy (D-Willowick) introduced House Bill 493 this week, a bill that bans the sale of tax delinquent certificates starting in January 2027. This is a practice that profits off Ohioans who struggle to pay their rising property tax bills. 

“This practice is just wrong. It plays a horrible role in the property tax issue and allows private corporations to profit from a homeowner’s worst-case scenario. I believe county treasurers want to do what is right and work with property owners. Since there are already other options to work with homeowners, the selling of tax delinquent certificates is not needed,” said Rep. David Thomas.

A county treasurer can sell a homeowner’s tax delinquent certificate on the private market to make up the revenue that is lost in unpaid property taxes. Most counties have stopped this practice but there are still some counties that sell these certificates to corporations and individuals. These groups then capitalize on the property owner’s tax debt with interest, fees and cost that are much higher than the original tax amount that the county would have charged. The corporation can foreclose on the homeowner for missed payments and receive the property oftentimes for a cost much less than what the property is worth, resulting in profit at the expense of the homeowner. 

"Too many Ohioans are struggling these days to meet their property tax obligations. Recent increases in property valuations have made it more difficult for many of our citizens to pay their property tax bill in a timely manner. Rather than sell their tax obligations to collection agencies, that will only increase that pain, we need our local officials to work with them to mediate their delinquency, instead of hiring headhunters to harass them. That's why I'm glad to join with Representative Thomas in eliminating or restricting this unacceptable practice," said Rep. Troy. 

Representative Thomas also cites, “This practice is similar to the bad market practices I fought against in 2017 and the devastating impacts that the payday loan industry had on Ohioans. We needed strong reforms then for those victims and we need state action now to protect our homeowners from this practice.”

Both Representatives Thomas and Troy have been heavily involved in the property tax reform discussions happening in Columbus and see this as a much-needed reform to protect Ohio families and seniors from bad practices that can result in foreclosures.