Currently, Ohio has the third-largest foreclosure rate in the US. In Ohio, 32 percent of mortgages are approaching foreclosure. Foreclosure in Ohio is now a common occurrence and so many people here are facing the loss of their home that one in over 400 homes will be foreclosed. Here are the five common mistakes that people make when facing foreclosure
1. Ignore the Issue
Many homeowners who are in foreclosure feel that they cannot do anything about the problem, so they ignore it. Sadly, time is of the essence and there are tools available that protect homeowners from banks trying to foreclose.
The sad truth is that it costs the homeowner more if they neglect to take immediate action. A foreclosure attorney can use the protection from state and federal laws to stop a foreclosure or give you additional time to sell the house.
2. Walking Away
When you walk away from a mortgage the court has no choice but to side with the lender. That means that the homeowner receives a deficiency judgment, which can last for up to two years and include garnishments for paychecks, etc., not to mention the credit hit they will take.
Walking away is the last thing a homeowner should do. Many banks may not even have the right to foreclose.
3. Not having the paperwork reviewed by a legal expert
The mortgage paperwork is complex, and it has to follow the letter of the law. If the paperwork is not correct or the signatures on the documents are fraudulent, the bank may not have the right to foreclose. Big banks have been in trouble in the past for using “robo signers” – people not qualified under the law to sign mortgage documents. Sometimes they will lose the original loan documents, but since the borrower doesn’t put up a fight, the bank ends up getting away with it.
4. Not Fighting the Foreclosure
When homeowners give up without fighting for their homes, it gets sold for a fraction of what it is worth, or the bank ends up getting the property back. When you fight the foreclosure you are asking the bank to prove that every part of the mortgage was executed correctly. The bank may not have the right to foreclose, and you should make them prove that they do.
The process can extend the foreclosure period so that you have more time to either bring your loan current or execute a short sale.
5. Hiring Legal Help that does not specialize in Foreclosure
The process is extremely specialized. When homeowners hire legal help that does not specialize in foreclosure they put themselves at a disadvantage.
The foreclosure process is not just about going to court. There are many other factors that need to occur before the two parties go to court. Making sure those factors are complete can sometimes negate the need to go to court.
Contact Cozmyk Law Offices If You’re Facing Foreclosure in Ohio
Cozmyk Law Offices specializes in the foreclosure process in Ohio and has the legal experience to help homeowners take on banks and lenders of all sizes. Learn more about how we can help you, by reaching out to our team.
