Are you a homeowner in Ohio facing foreclosure? If so, you may be feeling overwhelmed with a range of emotions, such as anxiety, confusion, and frustration. It can be frightening to think about losing your home, but you are not the only one who feels this way. Foreclosures affect thousands of Ohio homeowners every year, but there are resources available to help you.
This blog post provides an overview of the foreclosure process in Ohio, as well as some tips on how to protect yourself and your loved ones.
What is a Foreclosure, and How Does it Work in Ohio?
Foreclosure is the process by which a lender seeks to recover unpaid loan balances from a delinquent borrower. Ohio’s foreclosure process is judicial, which means it’s handled by a court. The formal process begins when the loan holder files a complaint with the court called the “lender.” Upon filing the complaint, the lender will serve you with a copy and summons.
How to Avoid Foreclosure
If you want to avoid the foreclosure process, you can do a few things. Your first step should be to get in touch with your lender and request the option to come up with a payment plan. Many times lenders are willing to help out homeowners who are having a difficult time if they come forward.
You might also be able to get help from a housing counselor or foreclosure prevention specialist. Using the services of a foreclosure prevention professional can help you better understand your options and devise a plan that works for you.
The Judicial Foreclosure Process in Ohio
A judicial foreclosure starts when the lender files a lawsuit seeking a court order authorizing the sale of the property. By serving you with a summons and complaint, the lender gives you notice of the suit. In addition to instructions about when and where to file an answer, the summons will include other important information about the foreclosure case. It is likely that the summons will include information on how you can participate in mediation, including a request form.
Examine the complaint and attached exhibits carefully, including the promissory note and mortgage you signed when you took out the loan. If you disagree with the allegations or notice that the lender failed to provide appropriate documentation, you can raise these points in your response. You have 28 days to answer the complaint and serve (or mail) your answer or other response to the lender’s attorney. You can request an extension from the court if you need more time to answer. Except in a few circumstances, if you don’t raise a defense in your answer, you can’t raise it later.
If you fail to respond to the suit, the lender will ask the court for a default judgment, which will allow them to hold a foreclosure sale. In contrast, if you decide to defend the foreclosure lawsuit, the case will be litigated. There may be a special foreclosure magistrate assigned to your case that provides findings and recommendations. In the event that you do not object to the magistrate’s findings or if the court overrules your objection, the court may adopt the decision in whole or in part.
At this point, the lender may request a summary judgment which asks that the court grant judgment in their favor, claiming that critical aspects of the case are undisputed. Your home will be auctioned if the judge grants summary judgment to the lender or you lose at trial.
After the property is appraised, it cannot be sold for less than two-thirds of its appraised value at the foreclosure auction in Ohio. For three consecutive weeks, a newspaper publishes the date, time, and place of the sale.
How to Stop or Delay Foreclosure
If you’re having a tough time making your mortgage payments, it may seem as though there is no escaping foreclosure. However, there are ways to avoid foreclosure even when you’re already in the process.
Reinstate Your Loan
Though Ohio law doesn’t outline a borrower’s right to reinstate a loan, your loan paperwork might allow for reinstatement. Check your mortgage to see if you’re entitled to reinstatement or not. Otherwise, your lender may be willing to let you reinstate your loan.
Redeem Your Property
Some states also allow foreclosed borrowers to purchase back their homes after foreclosure sales. Ohio law allows you to redeem up until the court confirms the sale. If you need more time to redeem, you can ask the court to delay the confirmation.
File for Bankruptcy
Although bankruptcy is not ideal, it can protect you from foreclosure. The automatic stay prevents the lender from collecting a debt or foreclosing when a bankruptcy is filed.
Sell Your Home
Selling your home may be an option for you if you’re facing foreclosure. Using the sale proceeds, you can pay off your loan and avoid foreclosure.
What if Foreclosure is Inevitable?
The damage from foreclosure can still be minimized, even if it is inevitable. You should try to stay in your house until the foreclosure is complete so you can have more time to find a new home and keep your belongings.
In addition, seek legal advice before taking any action. An attorney can help you understand your rights and options so you can get the best outcome.
The prospect of foreclosure is something no one wants to think about, but it is important to know how to handle it. When you understand how foreclosure works, learn about state laws, and know your options, you can make an informed decision.
What are the Consequences of Foreclosure?
Foreclosures can adversely impact homeowners and communities. Homeowners with damaged credit scores may have difficulty finding new housing after a foreclosure. It can also make it difficult for you to obtain a mortgage or rent an apartment. Lack of affordable housing can also lead to homelessness after foreclosures.
It is also possible for foreclosures to negatively impact communities. Vacant and abandoned homes can reduce property values and create safety hazards. As a result of criminal activity targeting vacant homes, crime rates increase.
Resources for Homeowners Facing Foreclosure in Ohio
If you are facing foreclosure in Ohio, several resources are available to you. The U.S. Department of Housing and Urban Development offers homeowners counseling and assistance to prevent foreclosure. You can also contact the Fair Housing Resource Center for additional guidance and resources.
Sell Your Home Fast & Avoid Foreclosure in Ohio Today
There can be a lot of stress and difficulty associated with foreclosure. The damage to your credit could be severe, and you might lose your home. If you’re feeling overburdened by the prospect of foreclosure, you can avoid it by selling your home to your trusted Ohio home buyer.
We buy houses in any condition at Favor Home Solutions and offer cash offers so you can get back on your feet ASAP. Get in touch with us today for more information about how we can assist you through this turbulent time!
