For many people, part of the American dream is to own a home. That dream can turn into a nightmare if you are facing foreclosure like an estimated 362,275 families were reported to be in the first half of 2018. One of the most important things to realize is that if you are suspecting you will be hit with a foreclosure notice, you should take immediate action before that happens. The sooner you ask for help, the better off you will be. Though you may be thinking you will be evicted if you receive a foreclosure notice, you do have options.
Ohio Foreclosure Procedure
In the state of Ohio, your lender must go through the judicial system in order to foreclose on your home. This can be a good thing for homeowners. This means you have a right to contest any foreclosure complaint that is filed against you. Once you have missed three payments on your mortgage, your lender can file a foreclosure complaint against you, beginning the foreclosure process. Once that happens, you will be notified and sent a summons to appear in court. You must answer the summons within 28 days, after which you may be allowed extended time to work out a repayment modification with your lender.
Talk to Your Lender
The first thing you should do when you are having trouble making mortgage payments is to talk to your lender. It is important to examine your situation and look at your finances. Are you in financial distress temporarily or permanently?
If your financial distress is temporary:
There are a couple options you may have if your financial distress is due to a temporary situation. These options can include:
- Reinstatement: If you are able to afford your current monthly payment, you may be eligible for reinstatement, which brings your loan current by paying the missed payments along with any fees or late charges;
- Repayment Plan: If you were experiencing a short-term financial setback, you may be able to come up with a repayment plan with your lender. This would enable you to catch up with your loan by paying a portion of your missed payments each month in addition to your usual monthly payment; or
- Forbearance: If your lender offers you a forbearance, they are allowing you to temporarily reduce or suspend your payments for up to six months while you recover financially.
If your financial distress is permanent:
If you are experiencing a permanent financial hardship, do not give up hope as you still have options. These options may include:
- Refinancing: If you refinance your home, this means you are paying off your current mortgage in full with a new loan that has a new interest rate and a new monthly payment. You may be able to lower your monthly payments this way; or
- Loan Modification: Modifying your loan can be helpful because it can change terms of the loan including lowering the interest rate, lengthening the loan term or capping the monthly payment at a percentage of your income.
A Medina County Foreclosure Attorney Can Help
Though the prospect of losing your home can be terrifying, there are certain steps you can take to help yourself. If you receive a foreclosure complaint, you need to immediately contact a skilled Wadsworth foreclosure defense lawyer to help you. Erb Legal LLC is here to help you with a variety of matters, one of them being foreclosure defense. Call our office today at to set up a consultation.