Ohio Supreme Court Holds Foreclosure Appeals Remain Viable After Distribution of Sale Proceeds

Ohio Supreme Court Holds Foreclosure Appeals Remain Viable After Distribution of Sale Proceeds

On July 15, 2026, the Ohio Supreme Court issued its decision in Wells Fargo Bank, N.A. v. Doberdruk (2026-Ohio-2674), resolving a split among Ohio appellate districts regarding whether a borrower's appeal from a foreclosure judgment becomes moot after a foreclosure sale has been completed and the sale proceeds have been distributed.

The Court held that a foreclosure appeal is not rendered moot merely because the borrower failed to obtain a stay pending appeal, the sale was confirmed, and the sale proceeds were distributed. Rather, the Court concluded that R.C. 2329.45 preserves a remedy of restitution if the foreclosure judgment is ultimately reversed, allowing an appellate court to provide meaningful relief even after the foreclosure process has concluded.

Importantly, the decision does not affect the validity of a completed foreclosure sale or disturb title conveyed to a third-party purchaser. Instead, the available remedy is limited to restitution from the judgment creditor as provided by statute.

Practical Implications for Mortgage Servicers

• The decision resolves the prior split among Ohio appellate districts and establishes a uniform statewide rule.

• A completed foreclosure sale and distribution of proceeds no longer provide a basis for dismissing a pending foreclosure appeal as moot.

• Borrowers who do not obtain a stay pending appeal may nevertheless continue to pursue the merits of their appeal.

• Servicers should continue to monitor Ohio foreclosure appeals after sale completion and remain mindful of the potential for restitution under R.C. 2329.45 if a foreclosure judgment is ultimately reversed.

McCabe, Weisberg & Conway will continue to monitor developments affecting mortgage servicers and creditors throughout Ohio.