Foreclosure Defense In Ohio: Know Your Rights And Alternatives To Bankruptcy
Are you facing the foreclosure of your home? If so, you know it can be a daunting experience that often leads to feelings of helplessness and panic. It’s important to understand that receiving a foreclosure complaint doesn’t automatically mean that you’ll lose your home. Homeowners in Ohio have important legal rights and several alternatives beyond simply filing for bankruptcy. Understanding these options and acting quickly is your best course of action toward a successful foreclosure defense.
Understanding the Ohio foreclosure defense process
In Ohio, foreclosures are a judicial process. That means the lender must file a lawsuit against you in court. This provides you with an opportunity to respond formally and challenge the lender’s claims. When you are served with a complaint and summons, you typically have 28 days to file an answer.
Failing to respond within this timeframe can result in a default judgment, accelerating the foreclosure. A timely response is crucial because it allows your attorney to raise specific legal defenses, such as improper servicing of the loan, the lender’s inability to prove they own the debt, or violations of federal consumer protection laws like the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA).
Alternatives to bankruptcy
Many homeowners default to thinking bankruptcy is their only salvation. While bankruptcy can halt a foreclosure temporarily and help manage other debts, it is not the sole solution for saving your home. Other effective strategies include:
- Loan modification – This involves negotiating with your lender to permanently change the terms of your mortgage loan. Modifications can lower your interest rate, extend the loan term, or in some cases, reduce the principal balance owed. A successful modification can make your monthly payments affordable again.
- Forbearance agreements – If your financial hardship is temporary (like job loss or a medical event), a forbearance agreement temporarily reduces or suspends your mortgage payments, often with a plan to catch up on the missed amounts.
- Deed in lieu of foreclosure – If staying in the home is not an option, a deed in lieu of foreclosure allows you to voluntarily transfer ownership of the property to the lender in exchange for the release of your mortgage debt. This often looks better on a credit report than a completed foreclosure.
- Short sale – The bank agrees to let you sell the home for less than the amount owed on the mortgage. As with a deed in lieu, the goal is often to have the bank forgive the remaining debt (the deficiency balance).
Talk to a Columbus, OH, Foreclosure Defense Lawyer
Kohl & Cook Law Firm, LLC, represents the interests of Ohio residents who are facing foreclosure. Call our Columbus foreclosure defense lawyers today to schedule an appointment, and we can begin discussing your next steps right away.
