What Homeowners Need To Know About Ohio Foreclosure Laws
The State of Ohio protects the rights of homeowners during the foreclosure process. Our state uses a judicial foreclosure process, which means that lenders must have court approval before they begin the foreclosure process. In addition, Ohio also offers mediation services through the court system for homeowners who have a good chance of keeping their homes. During this process, an impartial third-party mediator will help both lender and borrower reach a mutual agreement. With this in mind, it’s important for Ohio residents facing foreclosure to understand the foreclosure timeline. In this article, we’ll discuss just that.
#1. You fall behind on your mortgage payments
Those who miss payments on their mortgage will have 15 days from the date of the due date to pay it without penalty. Those who continue not to pay will be sent a notice by the lender informing them that they are in breach of contract. This notice will come six to eight weeks after the missed payment.
#2. You assess your options
If your lender sends notice that you’re in breach of contract, they will generally outline some of the options you have to avoid foreclosure. Some of these options include:
- Working out a repayment plan with the lender
- Modifying loan terms to make payments easier
- Filing for bankruptcy
- Arranging a short sale (selling the home for less than it is worth to repay the lender)
Each option has pros and cons. A foreclosure defense lawyer can help you choose which option is best for you.
#3. You work out a deal with the lender or your foreclosure case continues
Your lender can work out a repayment agreement with you. However, you still might not be able to pay the mortgage. If that’s the case, you might let the foreclosure proceed. The lender must wait 90 days from the date of the missed payment to file a foreclosure lawsuit. Many lenders will wait six months before beginning the process.
#4. You receive a summons and a complaint
Federal law requires lenders to wait more than 120 days to initiate the foreclosure process. This will give you time to catch up on payments. It also gives you time to plan your next steps.
The summons and complaint are the two forms you’ll receive when the foreclosure lawsuit is filed against you. You may elect to participate in court-overseen foreclosure mediation. However, it’s important to understand that the court is not obligated to offer mediation. Usually, the court will look at your finances to ensure you have a chance of making repayment. If you want to continue the case, you must file an answer to the lawsuit.
#5. You respond to the lawsuit
If you don’t respond to the lawsuit, the lender will win by default. This means they can repossess your home. If you request mediation and the court grants your request, you and the lender will attempt to resolve your issues via mediation. You can also contest the foreclosure in which case the case would proceed to litigation.
Talk to a Dayton, OH Foreclosure Defense Lawyer Today
Kohl & Cook Law Firm, LLC represents the interests of Dayton residents who are facing foreclosure. If you want to fight the foreclosure, we can help. Call our Dayton foreclosure defense lawyers today to learn more.
