Facing foreclosure is one of the most stressful situations for a homeowner. Unfortunately, navigating a path forward in the face of foreclosure can be extremely difficult to achieve, especially if you don’t have an experienced foreclosure defense attorney on your side.
If your home is at risk of foreclosure, you should be aware of five of the most common mistakes homeowners make during the foreclosure defense process, what you can do to avoid them, and when to seek legal help.
Understanding Foreclosure Defense
Foreclosure defense is a general term that refers to proceedings and strategies you can use to avoid having your home foreclosed on. The strategies for defending against foreclosure that are right for you must be determined on a case-by-case basis.
Foreclosure defense refers to the legal strategies that might help stop your home from being foreclosed on.
The amount of your overall debt, your current income level, your earning ability, and the number of work years you have left are all factors to take into consideration when identifying which foreclosure defense strategy is best. Educating yourself about what does and doesn’t work during an Ohio foreclosure defense is a necessary starting point.
Call 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) to speak with an Ohio bankruptcy attorney at Fesenmyer Cousino Weinzimmer.
The Top 5 Foreclosure Defense Mistakes to Avoid
The average homeowner has little experience with foreclosure defense until they find themselves fighting to retain ownership of their home. This means that it’s very common for homeowners to make certain mistakes. Knowing some of the top mistakes, how they can hurt you, and what you should do instead gives you the best chance of successfully defending your home from an impending foreclosure.
1. Ignoring Foreclosure Notices
It can be surprisingly easy to fail to respond to notices that your home is being foreclosed on. In this type of situation, homeowners slowly fall behind on their mortgage payments. Eventually, past-due notices turn into foreclosure notices. By this point, many homeowners have built the habit of not even opening mail from their mortgage provider.
In other cases, you may open and read the mail but not know what to do next. When you don’t have a strategy in place, facing foreclosure can feel paralyzing. It’s important to realize that a huge number of homeowners find themselves in this situation. You have options, and you’re not alone. If you need assistance navigating the foreclosure process, the best thing you can do is pick up the phone and schedule a free consultation with a lawyer.
2. Mismanaging Home Equity Loans
If your finances have gotten to the point where you’re facing home foreclosure, there’s a good chance that you have taken out a home equity loan. Mismanaging existing home equity loans is one of the biggest types of mistakes that homeowners make during the foreclosure process. First of all, you should never take out a home equity loan to pay off credit card debt or other forms of unsecured debt. Doing this harms your finances and makes the bankruptcy process more challenging down the line.
If you currently have both a primary home mortgage and a second mortgage, you should prioritize paying off the primary home mortgage. Some homeowners make the mistake of trying to split payments equally between the two. Instead, if you’re facing foreclosure, any money you have to spare for payments should be spent on your primary mortgage.
3. Using Retirement Savings to Keep Your Home
Using retirement savings to try to avoid foreclosure is usually a mistake. Retirement savings are typically protected from the bankruptcy process. If your financial circumstances get to the point where you have to file for bankruptcy, retirement savings will be protected, as long as they’re in a retirement savings account. If you’ve drained your retirement savings in an attempt to hold on to your home, you still risk losing your home, but now you’ve also lost the savings you’ll need for your retirement.
4. Fighting to Keep a Home You Can’t Afford
The hard reality is that in some cases, allowing a foreclosure to happen may be the best path forward. It can be incredibly difficult to give up ownership of your home. However, the end goal of foreclosure defense is to return to good standing with your mortgage provider and then continue making regular payments on your mortgage.
If your income level has changed, life circumstances like illness or divorce have changed your standard of living, or you are past retirement age, continuing to pay a mortgage you can’t afford for years to come may not be practical or possible. No matter how painful it might be to have to relinquish a beloved home, it’s important to take a realistic look at whether you can afford to maintain the home you’re fighting to keep.
5. Representing Yourself
If you’re serious about successfully defending your home from foreclosure in Ohio, working with a lawyer is rarely optional. A foreclosure defense attorney helps review your finances, negotiate with your creditors, and identify a path forward that both saves your home and leads to long-term financial stability. When you don’t have a lawyer, it’s very hard to know when your actions are helping or harming your case. Skilled legal representation is the best tool you have for a successful foreclosure defense.
6. Bankruptcy Might Be an Option
Filing a bankruptcy can save your home from foreclosure. Our experienced attorneys have helped thousands of families get a fresh start and save their homes from foreclosure.
Contact Our Ohio Bankruptcy Lawyers Now
If your Ohio home is facing foreclosure, the best thing you can do is contact our experienced Ohio lawyers. The sooner you get one of our skilled lawyers on your case, the better your chances of saving your home and regaining control over your finances.
Fesenmyer Cousino Weinzimmer is an Ohio bankruptcy law firm. We assist clients and manage various types of debt, including mortgage debt and foreclosure defense. Our experienced Ohio attorneys are ready to review your current financial situation, identify the best strategy for your foreclosure defense, and assist you in the process of fighting for your Ohio home.
Waiting to act is a huge mistake when your home is facing foreclosure. Don’t delay any longer. Contact Fesenmyer Cousino Weinzimmer today by calling 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) to schedule a consultation with one of our experienced lawyers.
