Anytime a homeowner gets behind on their mortgage, they could face foreclosure. Foreclosure is a legal process that allows the lender to take possession of the collateral used to secure the mortgage loan. Unlike an automobile repossession, a mortgage lender cannot simply come in and take back a home. They have to file documents in court and convince a judge that they are entitled to the property. This process can take some time and because it represents an expense to the lender, foreclosure in Cincinnati, OH is typically only started after all other possible methods of collecting the debt have been attempted and failed.
The worst thing a homeowner can do when they are not able to make their mortgage payment is to ignore the letters and calls from their lender. It might be possible to make arrangements with the lender to modify the mortgage or make up the late payments to get the loan current. Some lenders will offer this option to homeowners to help them avoid foreclosure. It’s important for families that are given this advantage to follow the terms of the agreement in order to prevent any further actions against them. Homeowners should remember that any late or missed payments on their mortgage loan can have a negative effect on their credit score.
If it’s too late to work out an agreement with the lender or the lender has already filed for foreclosure in Cincinnati, OH, homeowners still have options. Instead of allowing the bank to take the home, an individual or married couple could file for bankruptcy protection. Filing for bankruptcy may give a family an opportunity to keep their house. If the family has a stable source of income, they may be able to reorganize their debts, including the mortgage loan and credit cards, with chapter 13 bankruptcy.
Foreclosure can have a serious impact on a person’s credit and make it challenging to find new housing. Families facing the loss of their home can visit us to learn how they may be able to stop the foreclosure process and potentially keep their home, while they pay off their outstanding debts over an extended period of time.