How to Stop a Foreclosure in Cincinnati, OH

Stopping a foreclosure can help you save your home.

Ohio state laws only allow judicial foreclosing proceedings. A judicial foreclosure is when the lender has to file a lawsuit against the borrower to receive permission from a judge to sell the property. To stop a foreclosure in Cincinnati Ohio, you have to act before the judge rules in favor of the lender and orders the property up for sale.

Instructions

1. Call the Save The Dream Ohio Hotline at 888-404-4674. Governor Ted Strickland created the Save the Dream Ohio project for homeowners who want to stop a foreclosure. When a homeowner calls the hotline, she is paired with a housing counselor who explains every option available to Cincinnati residents.

2. Apply for a short refinance at a Cincinnati bank or credit union; applying in person will help expedite the refinance process. A short refinance is a refinance program that allows those in a foreclosure to pay off the original mortgage and create a new mortgage with lower payments. Most banks or credit unions want you have a stable income and good credit for approval.

3. Contact a local bankruptcy attorney in Cincinnati Ohio, and file a Chapter 13 bankruptcy. This type of bankruptcy will lower your monthly payment and help you to keep your home, if it is your primary residence. Using a local attorney will ensure their knowledge about local bankruptcy laws.

4. Sell your property during a short sale to stop the foreclosure in Cincinnati, OH. A short sale can happen if the lender agrees to take a lower payoff for the property. This option is only appealing to the lender if they do not think they will be able to sell it for more money, and your debt is considered paid in full once the short sale is over.

5. Stop the foreclosure with a deed-in-lieu process. In a deed-in-lieu you give the property to the lender and they mark the property as paid in full. This option only works after you have tried to sell the property with no success. You will lose your home but there will not be lingering foreclosure on your credit or public records.

Tips & Warnings

• Filing for bankruptcy should be a last resort in stopping a foreclosure. Chapter 13 bankruptcy will have a negative impact on your credit and will not come off your credit history for seven years.

• Ohio does not have a right to redemption law. Once your property has been foreclosed on you will not be able to get it back.

References

• Realty Trac: Ohio Foreclosure Laws
• HUD: Deed-in-Lieu Frequently Asked Questions
• The Truth About Mortgage: What is a Short Refinance
• Save The Dream Ohio: Ohio's Foreclosure Prevention Effort
• Realtor: Field Guide to Short Sale

Resources

• Backruptcy Info: Chapter 13