Few things feel as stressful as losing your home to foreclosure. However, if you’re like most homeowners, you aren’t aware of the rights you may have during the process. Here’s an overview of foreclosure in Ohio and a look at some of the main laws that defend your rights.
You might have more power in the foreclosure process than you think. State and federal laws outline several pathways to keeping your home and moving toward a brighter financial future.
Overview of Foreclosure in Ohio and Key Ohio Foreclosure Laws
Know the Process, Know Your Rights
Fortunately, Ohio protects the rights of homeowners throughout the foreclosure process. Like other states, it uses a judicial foreclosure process, meaning lenders must have court approval before initiating foreclosure. However, Ohio also offers mediation through the court system for homeowners who have a reasonable chance of keeping their homes. In this process, an impartial, trained mediator attempts to help the lender and borrower reach a mutual agreement.
The process of foreclosure can be stressful and confusing. However, it may help to have a general overview of the timeline.
1. You Fall Behind on Mortgage Payments
Usually, if you miss a payment, you’ll have 15 days from the due date to pay it without penalty. If you continue to not pay, the lender will send you a notice that you’re in breach of your contract. You’ll usually receive the notice six to eight weeks after the missed payment.
2. You Assess Your Options
When your lender sends you the notice that you’re in breach of your contract, it typically will outline at least some of the options you have to avoid foreclosure:
- Working out a repayment plan with the lender
- Modifying loan terms to make repayment more doable
- Filing for bankruptcy
- Giving the lender the deed to the home (in lieu of foreclosure)
- Arranging a short sale (selling your home for less than it’s worth to repay the lender)
These options each have their drawbacks and benefits, but a foreclosure defense lawyer may be able to help you make a choice. If you don’t think you can manage to catch up on payments right now, filing for bankruptcy may be an option, as it halts foreclosure proceedings immediately.
3. You Work Out an Agreement with the Lender or the Foreclosure Case Continues
In many cases, your lender can work out a repayment agreement with you. However, if you believe you’ll be unable to repay the mortgage regardless, you may choose to let the foreclosure proceed. The lender must wait at least 90 days from the date of your missed payment to file a foreclosure lawsuit. However, many lenders will wait six months or more before starting the process.
4. You Receive the Summons and Complaint
In most cases, federal law requires lenders to wait until your payment is more than 120 days past due to start the foreclosure process. That gives you time to try to arrange a plan to catch up on payments. It also gives you time to decide what your next steps will be.
The summons and complaint are the two forms you receive when a lawsuit (in this case, a foreclosure lawsuit) is filed against you. At this point, you might elect to participate in court-overseen foreclosure mediation. The lawsuit should include instructions for how to make this request. It’s important to understand that the court is not obligated to offer mediation. Usually, it will first look at your finances to make sure you have a reasonable chance of being able to meet the obligations of a payment plan.
If you want to continue the case — including if you want to attend mediation — you must file an answer to the lawsuit.
When you’re already stressed about possibly losing your home to foreclosure, it can be hard to make sense of your options. The attorneys at Fesenmyer Cousino Weinzimmer have helped countless homeowners navigate the foreclosure process through bankruptcy. Call us at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) to set up a free consultation today.
5. The Case Continues
What happens next depends on your response to the lawsuit. If you do not respond, the lender wins by default, meaning they can repossess your home. If you request mediation and the court grants it, you and the lender will attempt to resolve the issue via mediation. If you want to contest the foreclosure, the case can proceed to litigation.
6. If Your Home Is Foreclosed On, You Have One More Chance
If your efforts to save your home are unsuccessful and it is sold, you have one more chance to get it back. Once your home is sold, the sheriff must notify the court within 60 days, and the court must then confirm the sale within 30 days.
The time between sale and confirmation is called the “redemption period.” During the redemption period, you may buy your home back for the full sale price plus foreclosure fees.
Additional Resources for Homeowners
Find State-Level and Local-Level Support
If you’re going through the process of foreclosure, you aren’t alone. These resources may help you better understand and navigate this challenging time:
- U.S. Department of Housing and Urban Development
- Ohio Housing Finance Agency
- Journey to the Dream Mortgage Counseling Program
- Office of the Ohio Attorney General
These resources may be helpful, but the single most important thing you can do when it comes to facing foreclosure is to come up with a plan and seek legal advice when necessary.
Fesenmyer Cousino Weinzimmer: Your Allies When You’re Facing Foreclosure
Before you proceed any further, you should make sure you fully understand your available options. Our bankruptcy lawyers have spent decades helping homeowners achieve a fresh start. We understand the emotional nature of foreclosure, and we treat all of our clients with the compassion, respect, and individualized attention they deserve.
If you are facing foreclosure, bankruptcy may be a solution to reorganizing your finances and getting a fresh start. Call the lawyers at Fesenmyer Cousino Weinzimmer at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) to request your free consultation today.