If you’ve received a foreclosure letter or are facing foreclosure in Ohio, there are steps you can take to defend your home during the foreclosure process. Foreclosure became a common event after the 2008 housing bubble burst. Before that, it was not an overly common event and the laws were there to protect the lender. Today, both state and federal laws are in place that help to protect the home buyer. High amounts of foreclosures are not beneficial to local, state, or federal economies. If you are facing foreclosure, here are some of the best things you can do.
The Breach Letter (aka Notice of Default)
Most mortgages requires the lender to send a breach letter, which is a document that informs you that you have breached the terms of your loan and are in danger of being party to a foreclosure process.
Here Are Some Possible Next Steps:
- Contact your lender – and ask them what they need you to do to bring your loan back into compliance. You might expect that they will tell you that you need to make a huge payment, and they may say that. They may also offer you a way to make smaller payments that bring your loan back into balance. For the most part, foreclosure is not a positive event for lenders. If the lender does not work with you, they may be violating your rights. You will need a foreclosure defense lawyer or real estate attorney.
- A foreclosure defense lawyer can ensure that the lender is following the law and that your rights are being protected. In many cases, the lawyer can assist the client in modifying their loan to cure any default and put a stop to the foreclosure process.
- Non-retention Options – In some cases a client does not want to keep the home. A foreclosure defense attorney can attempt to negotiate a settlement to get rid of the property in the least financially damaging way whether it be through a deed in lieu, a short sale, a regular sale, or a consent judgment.
- Payoff – You can also pay off the loan in whole and stop the foreclosure. In many cases the loan servicer will give the borrower one number, their attorneys will give a different number, and unexplainable fees and costs will suddenly appear. A foreclosure defense attorney can help sort through that and make sure that the borrower receives the correct information and that the loan is properly paid off and the foreclosure process is stopped.
- Reinstatement – Sometimes a borrower will have enough money to bring the loan current but can pay it off in full. A reinstatement is a process that allows a borrower to achieve this goal.
There Is Still Time to Save Your Home
The best time to act is during the pre-foreclosure period – the time between when you are notified your loan is in breach and before the formal foreclosure process begins. If that time has already passed, there are still plenty of options open for you to stop a foreclosure. By working with a lawyer who is familiar with foreclosure laws, you can possibly save your home or find another positive way to end the foreclosure. That may mean selling the house or property or finding a way to reduce your payment, creating a catch-up plan, or just stopping the harassment from the lender.
Contact Cozmyk Law to Potentially Avoid Foreclosure or if you are already in foreclosure, to defend your rights.
Each loan is different, but all lenders must comply with Federal and state laws regarding the lending, servicing, and foreclosure processes, and borrowers have a variety of rights. Discover your legal rights and all of your options under foreclosure today by giving the lawyers at Cozmyk Law a call.