Understanding the foreclosure process in Ohio is an important part of navigating your own home foreclosure.
Before we dive in…
Understanding the Foreclosure Process in Ohio
What is foreclosure anyway?
Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments.
Foreclosure is no fun. But just know that it’s not the end of the world.
When you know how foreclosure in Ohio works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.
The Basic Stages of A Foreclosure
There are a few stages that are important to any foreclosure process.
Foreclosure works differently in different states around the country.
The two ways different states use to foreclose upon a property are: judicial sale or power of sale.
Connect with us by calling 614-810-7355 or through our contact page to have us walk you through the specific foreclosure process here locally in Ohio.
In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.
Under Judicial Foreclosure:
- Your mortgage lender must file suit in the court system.
- You’ll get a letter from the court demanding payment.
- Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
- If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.
Under Power of Sale (or Non-Judicial Foreclosure):
- The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
- After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
- The trustee can then sell your property to the lender at a public auction (notice must be given).
Anyone who has an interest in the property must be notified during either type of foreclosure.
For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
What Happens After A Foreclosure Auction?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds.
Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.
Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at Property Peace to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you need to sell a property near Columbus, Ohio we can help you. We can help you in understanding the Foreclosure Process in Ohio
We buy houses in Ohio like yours from people who need to sell fast.
Why Choose Us?
At Property Peace, we specialize in helping homeowners navigate challenging situations like foreclosure. Our unique selling propositions (USPs) ensure that you have the best possible options:
1. Guaranteed Offers with Upfront Cash: We stand out from other buyers because we provide a guaranteed written offer, and once the title search is back—usually within just three days—we pay $500 of the purchase price upfront. This unique approach gives you immediate cash flow, reducing your financial stress while ensuring that you have some funds available during the waiting period before closing. This offer allows you to assess your situation without any pressure, providing a financial buffer while you make your next move.
2. Flexibility to Close on Your Schedule: Unlike traditional sales where you are at the mercy of the buyer’s timeline, we offer the flexibility to close on the date that works best for you. Whether you need to sell immediately or want some time to arrange your next steps, we accommodate your needs. This is particularly beneficial in foreclosure situations where timing is critical. We help you avoid the uncertainty of waiting for a buyer to secure financing or deal with other delays.
3. Sell As-Is Without Hassle: One of the biggest advantages we offer is purchasing homes “as-is.” You don’t need to worry about making costly repairs or upgrades to attract buyers. This is especially important in foreclosure cases, where time and money are often in short supply. By buying your property as-is, we help you avoid the hassle and expense of getting your home market-ready.
4. Top Dollar Offers: We leverage advanced technology and multiple money partners to ensure that you receive a competitive offer. In many cases, we can offer more than what you might get on the open market because of our long-term buy-and-hold strategy. Our goal is to provide you with a fair and equitable offer that reflects your home’s true value, even in a distressed sale situation.
5. Free Property Analysis: Before you make any decisions, we offer a free property analysis to determine your home’s value in the current market. This service is invaluable, as it gives you a clear picture of what you can expect if you decide to sell your home. Our detailed analysis includes current market trends, comparable property sales, and a thorough assessment of your home’s condition, helping you make an informed decision about your next steps.
Conclusion
If you’re facing foreclosure in Ohio, understanding your options and acting quickly is vital. We’re here to help you through every step of the process, offering solutions that can save your home or provide you with the best financial outcome. Don’t let foreclosure define your future—reach out to us today to explore your options and take control of your financial situation.
By choosing Property Peace, you’re opting for a stress-free process with guaranteed offers, flexible closing dates, and the assurance that you’re getting top dollar for your property. Contact us today to learn more about how we can help you navigate the foreclosure process and come out ahead.
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Another Foreclosure Resource For Ohio HomeOwners: