Foreclosure
What to do before you have been served foreclosure papers
As soon as you foresee a problem making your mortgage payment contact your mortgage company's Loss Mitigation Department. The name of the servicer may be found on the payment booklet. Ask for a workout or a loan modification but do not agree to anything that you cannot afford. If you come to an agreement with loss mitigation make sure you get a copy of the agreement immediately and send it to the mortgage company’s attorney and file a copy with the court. You may call The Legal Aid Society of Columbus for assistance in this process.
What to do after you have been served
If you have been served with a summons/complaint from your mortgage company then you have 28 days to file an answer/counterclaim with the court. The answer may be handwritten and is an omission or denial and should state your side of the story. If you are not sure that all of the information in the complaint is true then you can file the answer stating that you do not have enough information to answer.
If you do not file an answer in that timeframe on day 29 the mortgage company will be granted a default judgment and put the home in foreclosure. Even once the judgment has been granted you should stay in the home. Most foreclosures take 6 months to a year and you do not have to leave your home until the foreclosure sale is confirmed and you have been given an eviction notice from the sheriff.
- Work Out: You will continue to make monthly payments and agree on terms/payment plan to catch up the amount that you are behind.
- Loan Modification: To restructure the loan by changing the loan terms. A lower interest rate would be an example of a loan modification.
- Loss Mitigation Department: Department of the mortgage servicing company who may negotiate and alter loan terms.
- Mediation: New Ohio program which provides a third party to meet with you and the mortgage company to try and resolve the issue. Information on mediation can be found through your local court, The Legal Aid Society of Columbus or Save the Dream.
- HUD: US Department of Housing and Urban Development
It is always a good idea to get outside help. Make sure that you only speak with HUD approved housing counselors because there are less reputable housing counselors that take advantage of people in their time of need.
You may call the Save the Dream hotline to be referred to a HUD approved counselor. Contact Save the Dream at 800-404-4674.
To apply for free legal assistance contact The Legal Aid Society of Columbus at 614-241-2001.
The Legal Aid Society of Columbus also offers a Foreclosure Self-help clinic the second Tuesday of every month from 6-7:30 p.m. at our office at 1108 City Park Ave. Columbus OH 43206.