The market has not been the best for homeowners in recent years. In a difficult economy, many homeowners have found themselves struggling to make payments on their homes and falling behind. When this happens, their houses fall into foreclosure. However, in 2012 the Ohio Supreme Court ruled on a case that offers hope to those in Ohio facing foreclosures.
The Ohio Supreme Court Decision
The case involves homeowners of a residence in Xenia, Ohio. They went through a very tough financial situation after the family wage earner lost his job. Although they tried to keep up with their mortgage payments, they ended up falling behind and the home went into default.
The couple’s home was then listed for short sale-a sale in which their home was sold for less than what they owed on their mortgage. The family was able to enter into a contract to sell the home for $259,900, but before the sale went through, a third-party, Federal Home Loan Mortgage Corporation, filed foreclosure on the property. As a result, the company would be taking control of the house in a short period of time.
The case eventually found its way in the hands of the Ohio Supreme Court. The court found that Federal Home Loan Mortgage Company, the third party, did not have an interest in the mortgage at the time it filed for foreclosure. Because it did not have an interest, it did not have standing and could not proceed with the foreclosure claim.
Added Protections from the Ruling
Fortunately for homeowners, the ruling adds some protection to those facing a foreclosure in the state of Ohio. The holding ensures that outside companies are required to allow the appropriate amount of time to pass before moving forward with a foreclosure. This ruling may keep outside companies in check and give the homeowners their fair share of time to handle the home in the best way that they can.
When a homeowner is faced with the threat of foreclosure, the process may seem complex and even overwhelming. It is often a difficult road to navigate and homeowners should be armed with the facts about the law and the proper amount of professional help. Seeking the help of our experienced foreclosure lawyers who understand the law is advised. It could easily be the difference between a sold home and a massive headache.