Any homeowner in Ohio will do whatever is possible to maintain ownership of the property. Unfortunately, unforeseen circumstances sometimes jeopardize one’s financial stability, and a threat of foreclosure may become a reality. Certain steps can be taken in an effort to prevent foreclosure.
If a homeowner is temporarily unable to make any mortgage payments, the lender may allow a forbearance agreement. This is an agreement by which the lender agrees to suspend any payment obligations for a specified period during which foreclosure will not be pursued. Certain negotiated conditions will go with such an agreement that will likely include foreclosure upon default.
A lender may agree to reinstate the loan whereby an agreement to stay current with payments is signed with an additional plan and payments terms to catch up on delinquent payments. This must be carefully considered because it can mean substantial additional monthly payments. Another possibility is to negotiate a modified loan by which the lender may agree to modify some of the terms permanently. The interest rate may be reduced along with the monthly payment, or the term of the loan may be extended. In some cases, it may even be possible to have the principal balances reduced.
These are all valid options, but Ohio homeowners are advised to be careful when considering offers of companies who promise to resolve these issues for them. They may end up even deeper in debt. It may be best to consult with an experienced bankruptcy attorney who can assess the situation and suggest the best way forward. The advice of an attorney may even include the option of filing for the protection of Chapter 13 bankruptcy, which is one way to prevent foreclosure while at the same time regaining financial stability.
Source: bills.com, “Avoid Foreclosure & Stay in Your Home“, Betsalel Cohen, Accessed on Sept. 2, 2016