Adverse financial circumstances — often caused by employment loss or medical emergencies — can have severe consequences. Homeowners may even face foreclosure. If an Ohio homeowner is notified of imminent foreclosure, he or she may have questions about the possibility of keeping the home, and what can be done with an auction date looming.
Foreclosures can be either judicial or nonjudicial; however, nonjudicial foreclosures are not typically available under Ohio laws. In Ohio, the court enters a judicial order to foreclose, and a subsequent sheriffs sale is scheduled to sell the property at auction. Once that date is set, time to save the home is limited — but remedies are available.
The homeowner can enter into negotiations with the mortgage lender to reorganize the payment plan and obtain other concessions. However, convincing a lender to stop an already scheduled auction may be challenging. Even if it negotiations are successful, the homeowner — who is already struggling to maintain payments — will now have to pay additional foreclosure costs.
Many Ohio homeowners in such predicaments choose to seek the guidance of an experienced bankruptcy attorney who is skilled in helping homeowners to prevent foreclosure. Filing for bankruptcy can put a stop to a foreclosure action even with an impending auction date. The court enters an automatic stay upon the filing that bars any creditor action. Moreover, a Chapter 13 bankruptcy reorganization may allow for the opportunity to address any lingering mortgage issues. The lawyer can assess the homeowner’s circumstances, advise the most appropriate remedy and assist with the legal proceeding that will follow.
Source: homeguides.sfgate.com, “Can I Save My House From Foreclosure If the Auction Date Is Only a Few Weeks Away?“, Jan. 20, 2017
