How to Stop Foreclosure in Ohio
Ohio is among the hardest hit states of the foreclosure crisis. Homeowners must be proactive and find creative ways to save their homes. The state offers some support to struggling families.
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Instructions
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Get educated. Knowing about the foreclosure process, foreclosure laws and your options is essential to saving your home. Lenders aren’t going to forgive your debt because you didn’t know you were in default, and loss mitigation counselors aren’t going to contact you. The state of Ohio has finally initiated a program to help educate homeowners. It’s called Save the Dream. You can go to the Save the Dream website to find information about programs designed to help homeowners (see Resources).
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Contact your lender. Letting your lender know you are facing a financial hardship before you are months behind on your payments will help you work out a solution. Lenders are more willing to work with homeowners who don’t ignore their letters and attempts to make contact. Your lender should have its own loss mitigation department, which you can contact to learn your options.
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Seek financial counseling through a HUD-approved foreclosure prevention counselor. These counselors can assess your financial situation and help you work out a solution with your lender. They can also look over any solution offer you have received from your lender to make sure it promotes long-term affordability, which should always be your goal.
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Contact Ohio NeighborWorks, an organization modeled after a program that has proved successful in Illinois for preventing foreclosures. The organization acts as a liaison between you and the lender to work out a solution that benefits you.
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Attend an Ohio’s Borrower Outreach Days. These are being organized around the state to provide homeowners with loan counseling, information about legal aid, loss mitigation, credit counseling, refinancing and other options for foreclosure prevention.
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See if you qualify for the Opportunity Loan Refinance Program or the Ohio Housing Finance Agency’s refinance opportunities. Both programs are designed to give homeowners affordable fixed-rate loans to replace their existing unaffordable, adjustable-rate loans.
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Talk to a bankruptcy lawyer. Ohio practices judicial foreclosures, which means a foreclosure takes months. That will give you the time to pursue a solution, but if you realize you can no longer afford the house, a bankruptcy is better than a foreclosure. Although they both stay on your credit for up to 10 years, lenders are far less likely to loan money to someone who has gone through foreclosure than someone who has filed bankruptcy. A bankruptcy will increase your chances of ever being able to own a home again, and in many cases it is less expensive than a foreclosure.
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Tips & Warnings
Act quickly. The faster you contact your lender about finding a solution, the better your chances are of avoiding the foreclosure.
Information about the Borrower Outreach Days, the Opportunity Loan Refinance Program and OHFA refinance loans can be found on the Save the Dream Ohio website.
The lender’s loss mitigation solutions aren’t always in your best interest. Don’t agree to anything until you’ve talked to a third-party foreclosure prevention counselor.
