Keeping you where you want to be...home.

We all experience hardships during our lives and we understand how hard it is to dig yourself out of a ditch once you’re already in it. We have been providing Ohio foreclosure assistance since 1999, and help homeowners like yourself get out of foreclosure.

You may be two months or two years behind on your mortgage. Regardless, there are several ways to avoid foreclosure which allow you to keep you credit and your home. Don’t lose your home and damage your credit history by doing nothing.

What Are My Options in Stopping Foreclosure?

· Reinstate your mortgage
· Payoff your mortgage
· Deed-in-Lieu
· Repayment Plan/ Forbearance Agreement
· Short Sale

I received a Summons, now what?

You will receive a Summons from the Court, which is a copy of the complaint filed against you. You haven't lost your home once a foreclosure has been filed. The average foreclosure takes 6-8 months to complete from beginning to end. So don’t worry, you don’t have to pack your things quite yet; you have several options.

What action should I take immediately?
Call or write your mortgage company and be honest about your financial situation. Your mortgage company would rather work with you to get you out of foreclosure rather than take your home.

Stay in your house! Only an order of the court can force you to leave your home. Once you abandon the property, you may not qualify for several options to get you out of foreclosure.

I Want to Keep My Home, What Can I Do?
If you want to keep your home, you have several options. You can Reinstate your Mortgage which means that you will be paying your missed payments, plus late charges, attorney fees and costs, and anything that your mortgage company has advanced (paid) on your behalf during your missed payments (i.e. real estate taxes, etc.) Now that your mortgage company is represented by counsel, you will need to contact the foreclosure attorney’s office so they can request reinstatement figures from your mortgage company for you. The attorney’s phone number is found on the last page of the foreclosure complaint in the attorney’s signature block. You always want to make sure you have the reinstatement amount in writing so you have a written quoted amount.

Call the foreclosure attorney’s office and ask for a reinstatement quote good through 30 days. This will allow you 30 days to pay the amount that they provide to you. Remember, the sooner you call the less the attorney fees and costs and late fees will be as the foreclosure will continue proceeding until your mortgage company receives your money. The foreclosure attorney’s office will fax or mail the quote directly to you. The reinstatement quote will provide you with the amount you need to pay, the date it needs to be paid by, what type of funds you need to send (cashiers check, money order, etc.) and where to mail your money. Once the funds are received by your mortgage company and applied to your loan, you will be out of foreclosure.

* Please note that if you are not the person who signed the Promissory Note, the attorney’s office and the mortgage company will not be able to provide you with a quote. If you are the not the person who signed the Note and need to request a quote, you must have written authorization from the homeowner.

A second option which allows you to keep your home is to complete a Repayment Plan or Forbearance Agreement. A Repayment Plan is intended to repay your mortgage company the past due amounts and attorney fees and costs over a period of time. This type of workout will usually require a down-payment, then monthly payments along with your regular monthly payment. A Forbearance Agreement normally reduces or suspends payments for a period of time allowing you to recover from a financial setback. If you are interested in one of these options you will need to contact your mortgage company’s loss mitigation department. If you do not know the phone number to your mortgage company’s loss mitigation department, you can contact the foreclosure attorney’s office in order to obtain the loss mitigation department’s phone number. The attorney’s phone number is found on the last page of the foreclosure complaint in the attorney’s signature block.

The loss mitigation department is an internal department within your mortgage company designed to work with you to complete a repayment plan which will bring you current on your mortgage. The foreclosure case will be placed on hold while you are making your payments through your repayment plan. Once you have made all the payments on your repayment plan or forbearance agreement, the foreclosure will be dismissed and you will be out of foreclosure. If you default (stop paying) on your repayment plan or forbearance, the foreclosure will continue proceeding again.

* Please note that if you are not the person who signed the Promissory Note, the mortgage company will not be able to provide you with a payment plan.

A third option which allows you to keep your home is to complete a Loan Modification. A loan modification is a change or alteration of the loan itself. Your mortgage company may be able to reduce your interest rate or reduce your payments. A loan modification is usually completed due to a home owner being in long term financial problems.

If you are interested in a loan modification you will need to contact your mortgage company’s loss mitigation department. If you do not know the phone number to your mortgage company’s loss mitigation department, you will need to contact the foreclosure attorney’s office in order to obtain the loss mitigation department’s phone number. The attorney’s phone number is found on the last page of the foreclosure complaint in the attorney’s signature block.

The loss mitigation department is an internal department within your mortgage company designed to work with you to complete a loan modification which will bring you current on your mortgage and get you out of foreclosure. Once you have completed the loan modification you will be out of foreclosure.

I Can’t Afford My Payments, Can I just walk away?
I f you are unable to make payment arrangements on your mortgage your property will be sold at a Sheriff’s auction which is held at the Courthouse on a specified date. As a result, you will have a judgment on your credit which will affect your credit rating for any future purchases which require credit approval.

A Deed-in-Lieu of foreclosure is an option which ends the foreclosure by transferring title from you back to your mortgage company. This option is not as damaging to your credit rating and allows you to walk away from the property. In other words, you agree to voluntarily "give back" your property to your mortgage company. This doesn’t allow you to keep your home, but forgives the debt and ends the foreclosure.

In order to qualify for a Deed-in-Lieu there can only be one mortgage on your property and no other outstanding liens or judgments against your property. The way to determine if you qualify is to call the foreclosure attorney’s office and ask them to check your title to see if you would qualify for a Deed-in-Lieu. The attorney’s phone number is found on the last page of the foreclosure complaint in the attorney’s signature block. The foreclosure attorney’s office will tell you if they believe you qualify, and if so, will refer you to speak with your mortgage company thereafter to get the deed in lieu process started. If your title is clear, ask the foreclosure attorney’s office for your mortgage company’s loss mitigation department phone number. The loss mitigation department is an internal department within your mortgage company designed to work with you to complete the Deed-in-Lieu process.

There are some additional requirements which your mortgage company may require in order to complete a Deed-in-Lieu of foreclosure. For example, your property should be in good condition and be at least equal to the fair market value. You may be required to put your house on the market for at least 90 days prior to being approved for a deed in lieu. Your mortgage company will advise you these requirements, if any, when you speak with them. Please be aware that neither you, nor your mortgage company, are obligated to proceed with the deed in lieu of foreclosure.

Your mortgage company will handle preparing the deed in lieu documents and will have it mailed to you for your signature. Once you have signed the deed in lieu, you will return it to the mortgage company or the attorney, who will thereafter send it to be recorded with the county recorder’s office. Once the deed in lieu documents are recorded, the property will belong to the mortgage company, and you will be out of foreclosure.

Another option to avoid foreclosure is to sell your house. You must sell your house for [at least] what you owe to payoff your mortgage. You may choose to sell your property independently or with a real estate agent. To get this process started, you will need to obtain a payoff quote in order to determine your listing price. Make sure that you are listing (pricing) your home for at least what you owe to payoff your mortgage. If your home is not worth what you owe on the mortgage, please see the ‘short sale’ section of this manual on page 7.

You will need to contact the foreclosure attorney’s office so they can request a payoff quote from your mortgage company for you. The attorney’s phone number is found on the last page of the foreclosure complaint in the attorney’s signature block. You always want to make sure you have the figures in writing so you have a written quoted amount. The foreclosure attorney’s office will mail or fax the quote to you.

Call the foreclosure attorney’s office and ask for a payoff quote good through 30 days. The payoff quote will include the entire balance of your existing mortgage, plus late charges that have accrued, attorney costs, and anything that your mortgage company has advanced (paid) on your behalf during your missed payments (i.e. real estate taxes, etc.) This quote will help you determine your listing price. Be aware that attorney costs will continue to increase during the proceeding foreclosure. Once you have received an offer on your home you, or your agent, will need to contact the attorney’s office again in order to obtain an updated payoff quote to ensure that the offer you are about to accept is enough to pay your mortgage in full.

After you have closed on your house with the new purchaser and your payoff funds have been received by your mortgage company and applied to your loan, you will be out of foreclosure.

* Please note that if you are not the person who signed the Promissory Note, the attorney’s office and the mortgage company will not be able to provide you with a payoff quote. If you are the not the person who signed the Note and need to request a quote, you must have written authorization from the homeowner.

Can I Sell My Home While I Am in Foreclosure?
Yes, you can sell your home during the foreclosure. You will need to sell the house for [at least] what you owe to payoff your mortgage. You may choose to sell your property independently or with a real estate agent. To get this process started, you will need to obtain a payoff quote in order to help determine your listing price.
You will need to contact the foreclosure attorney’s office so they can request a payoff quote from your mortgage company for you. The attorney’s phone number is found on the last page of the foreclosure complaint in the attorney’s signature block. You always want to make sure you have the figures in writing so you have a written quoted amount.

Call the attorney and ask for a payoff quote good through 30 days. The payoff quote will include the entire balance of your existing mortgage, plus late charges that have accrued, attorney costs, and anything that your mortgage company has advanced (paid) on your behalf during your missed payments (i.e. real estate taxes, etc.) This quote will help you determine the amount that you will need to list your house for. Remember that attorney costs will continue to increase during the proceeding foreclosure. Once you have received an offer on your home, you or your agent will need to contact the attorney’s office again in order to obtain an updated payoff quote to ensure that the offer you are about to accept is enough to pay your mortgage in full.

After you have closed on your house with the new purchaser and your payoff funds have been received by your mortgage company and applied to your loan, you will be out of foreclosure.

* Please note that if you are not the person who signed the Promissory Note, the attorney’s office and the mortgage company will not be able to provide you with a payoff quote. If you are the not the person who signed the Note and need to request a quote, you must have written authorization from the homeowner.

What if my House isn’t Worth What I owe on My Mortgage?
In some cases you can payoff your mortgage for less than what you owe. This situation is known as a Short Sale. Your lender (aka mortgage company) may be willing to accept less than what you owe on your mortgage. Be aware that you must have an amount to present to your mortgage company in order for them to determine if they will accept it. For example, you have your house on the market for $90,000, however, your highest offer has only been $80,000. You would ask your mortgage company to accept $80,000 as the full payoff amount of your loan.

If you are interested in this option, you will need to contact your mortgage company’s loss mitigation department directly. If you do not know your mortgage company’s loss mitigation phone number you will need to contact the foreclosure attorney’s office to obtain the number. The attorney’s phone number is found on the last page of the foreclosure complaint in the attorney’s signature block.

The loss mitigation department is an internal department within your mortgage company designed to work with you to complete a short sale to get you out of foreclosure. If a short sale is accepted by your mortgage company, and after the mortgage company receives your short payoff funds and applies them to the loan, you will be out of foreclosure.

* Please note that if you are not the person who signed the Promissory Note, the mortgage company will not be able to negotiate a short sale.

How Long Can I Stay in My House While I Am In Foreclosure?
Only an ORDER of the court can force you to leave your home. You can continue to occupy the property during the entire foreclosure process until a new purchaser takes title to the property. The average foreclosure takes 6-8 months from beginning to end. If your property is sold through Sheriff’s auction, on average, you will have 30-45 days before you must vacate the premises prior to eviction proceedings. Ultimately, if you refuse to leave, you will be evicted.

I Can’t Afford My Payments. Can I Still Keep My Home?
Yes, you can still keep your home if you can’t afford your payments. A Forbearance Agreement or Loan Modification are the most common types of workout plan which your mortgage company will work with you to complete in order to help you keep your home.

A Forbearance Agreement normally reduces or suspends payments for a period of time allowing you to recover from a financial setback. A Loan Modification is a change or alteration of the loan itself. Your mortgage company may be able to reduce your interest rate or reduce your payments. A loan modification is usually completed due to home owner being in long term financial problems.

If you are interested in one of these options you will need to contact your mortgage company’s loss mitigation department. If you do not know the phone number to your mortgage company’s loss mitigation department, you will need to contact the foreclosure attorney’s office in order to obtain the loss mitigation department’s phone number. The attorney’s phone number is found on the last page of the foreclosure complaint in the attorney’s signature block.

The loss mitigation department is an internal department within your mortgage company designed to work with you to complete a Forbearance plan or loan modification which will bring you current on your mortgage and get you out of foreclosure. The foreclosure will be placed on hold while you are making payments on the forbearance plan. Once you have made all the payments on your forbearance plan or completed the loan modification, you will be out of foreclosure. Be aware that if you default (stop paying) on your forbearance plan, the foreclosure will continue.

* Please note that if you are not the person who signed the Promissory Note, the mortgage company will not be able to speak with your regarding a repayment plan.

Beware of Scams!

There are several types of scam artists who will promise you the world for a price and guaranty to get you out of foreclosure. These companies cannot do anything for you that you cannot do yourself! Why pay someone else when you could be paying that money towards your mortgage? Avoid being scammed by paying attention to the following:

• Do not send or give money to anyone other than your mortgage company or the attorney’s office who is representing your mortgage company in the foreclosure.
  
• Do not sign any papers that you don't fully understand.
  
• Make sure you get all quotes and/or agreements in writing before you send money.
  
• You are still responsible for the debt (mortgage balance) even if you sign a Deed over to someone else. Signing a deed over to someone does not excuse you from owing on the mortgage (see page 4 for Deed-in-Lieu exceptions).
  
• Check with a lawyer or your mortgage company before entering into any contracts involving your home.
  
• If you choose to put your house on the market independently (without an agent) beware of buyers who try to rush you through the process of purchasing your home. Unfortunately, there are people who may try to take advantage of your financial difficulty. Phony counseling agencies. Certain groups which call themselves "counseling agencies" which may approach you or send you information through the mail offering to perform certain services for a fee. These companies cannot do anything for you that you cannot do yourself!