Foreclosure
Are you facing foreclosure? What can you do?
225 Court Street
Elyria, Ohio 44035
Contact Foreclosure
What does foreclosure mean?
The bank wants to take your house. This is usually because the bank believes you have not made all of your mortgage payments.
I received the court papers today. What’s the next step?
What happens if I don’t file the answer?
The bank will probably win with a default judgment, and your house may be sold at a sheriff’s auction. The auction could take place in as little as two months after judgment.
Who can help?
There are many organizations that help people dealing with foreclosure. For assistance from one of these organizations, please see our useful list of
Resource Links.
How do I avoid foreclosure rescue scams?
Don’t be deceived by scams targeting you in foreclosure. If you question whether services offered to you are reputable, contact the Ohio Attorney General at 1 (800) 282-0515.
What can I do to save my home?
Borrowers often express frustration that they have a difficult time getting lenders to respond to their requests for modifications of their loans. Once the foreclosure is filed, they feel intimidated by the legal system and think that losing the house can’t be avoided. Borrowers may be able to save the homes from foreclosure, but they must make the case their top priority and take charge of the situation. To save the house, a borrower must complete the following necessary steps;
- File an Answer to the Complaint: Borrowers must file their Answer to the Complaint within the time limits noted in the Summons that came with the Complaint. If Borrowers fail to file an answer, Borrowers need to appear at the default hearing. If the borrowers wish to obtain legal representation but cannot afford to pay for legal advice, a number of free resources are available. Additionally, borrowers may wish to obtain financial advice to determine if they can afford to keep the house. A number of resources are available both to help evaluate the situation either by yourself or with assistance. For more information, please see our comprehensive list of Resource Links. The Borrower’s Worksheet will also help you gather the important information and documents to help you decide.
- Attempt to Sell the House: If the borrowers determine that they cannot afford the house, then the borrower might still be able to reduce the negative effects of the foreclosure by attempting to sell the house. Doing this may help the borrower reduce the balance that might be due from the borrower, set up the possibility of a “short sale”, or set up the possibility of a “deed in lieu”.
- Request a Loss Mitigation Package: If the borrowers determine that they can afford the house, then the borrower should request a Loss Mitigation Package from the lender or the lender’s attorney. Borrowers should fully and accurately complete the Loss Mitigation Package and provide supporting current documentation. Mail, e-mail or fax the completed package to the lender and the lender’s attorney. Borrowers should retain a copy. The information required in a loss mitigation package usually consists of the following necessary information:
1) proof of savings and income,
2) two preceding months of all borrowers' bank statements / paystubs (if borrower is self employed, a profit and loss statement will be required),
3) all borrowers' other income sources (including, but not limited to, social security, alimony and pensions,
4) an itemized list of monthly income and all monthly expenses,
5) two preceding years of signed and dated tax returns,
6) a hardship letter, and
7) an original, current utility bill (a bill downloaded from internet is usually not acceptable).
Please note that once you have submitted a complete financial package, you should update your information on a monthly basis by sending to the lender and lender’s attorney your most recent pay stubs and bank account statements.
- Save as Much Money as You Can: Saved money will either help you re-negotiate the loan or help you with transition costs.
- Attend Every Hearing Scheduled by the Court: The Lorain County Foreclosure Magistrates initiate settlement discussions whenever possible. To take advantage of this opportunity, the borrower should attend all court hearings prepared to negotiate and to provide current and complete information.
- Possible Referral to Mediation: If the Magistrate believes the case can benefit from mediation, then the Magistrate may order the case to mediation. The borrower may also request mediation by mailing a Borrower’s Request for Foreclosure Mediation. The magistrate will determine whether mediation is appropriate and if so will order the case to mediation. To evaluate whether the borrower wishes to request mediation, please review the Client Mediation Preparation Guide and a Civil Mediation FAQ: Is mediation a good way to resolve the foreclosure case against my home?