If you’re struggling to pay your mortgage, it’s important to take action. Steps you take now could help save your home.
Coronavirus (COVID-19) changes
The foreclosure moratorium for mortgages backed by the Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA), U.S. Department of Veterans Affairs (VA), Freddie Mac or Fannie Mae has ended.
If you can't pay your mortgage, you should contact your loan servicer immediately to request help. Be prepared to wait on the line for assistance as a lot of homeowners are seeking help right now.
Ohio has allocated funding to Community Action Agencies to provide rent, mortgage and water and/or sewer assistance to Ohioans in need in all 88 counties. This assistance can help Ohioans pay outstanding balances back to April 1, 2020. Ohio households behind on their bills with an annual income at or below 200% of the federal poverty guidelines are eligible for assistance. You can apply for mortgage assistance now through your local Community Action Agency.
Pre-foreclosure is the period from when you miss your first mortgage payment to when your lender files a foreclosure in court. To take your home, Ohio law requires your lender to file a court action. Usually, lenders wait 90 to 120 days from your first missed payment before they file for foreclosure.
If you’re in pre-foreclosure, here’s what you can do.
Stay in your home
If you move out of your home, you could lose some of your rights. Someone could also vandalize your home while you’re gone, and you could end up paying for the damage.
Call your servicer
Your loan servicer can offer you options to help you get back on track and help you save your home. A lot of homeowners are seeking help right now, so be prepared to wait on hold. Make sure to have your account number ready. Ask your servicer:
- What options are available to help me temporarily lower or suspend my payments?
- Are there forbearance, loan modification or other options available?
- Can you waive late fees on my mortgage account?
If you get a forbearance, it will temporarily suspend or reduce your payments, but it is not forgiveness. You will still owe the payments at some point.
If your mortgage is backed by Freddie Mac or Fannie Mae, payments will become due after the forbearance, but you should not be required to pay a lump sum at the end of it, according to the Federal Housing Finance Agency. Instead, your loan servicer should contact you about 30 days before the end of your forbearance plan to discuss different repayment options. At that time, your servicer should work with you to do one of the following:
- Set up a repayment plan
- Modify the loan so that your payments are added to the end of your mortgage
- Set up a loan modification that reduces your monthly mortgage payment
Similar repayment options are available for FHA, VA and USDA mortgages.
Contact a HUD-approved housing counselor
If you want help working with your loan servicer, you may want to contact a HUD-approved housing counselor. Foreclosure prevention counseling is available for free through HUD’s Housing Counseling Program. To find your local HUD-approved housing counselor, go to "Local Government and Community Resources" on this page.
Foreclosure is the period from when your lender files a foreclosure complaint through when your home is sold at sheriff's sale and you are evicted. The court foreclosure process can take anywhere from 6 months to more than a year. It depends on your case.
Talk to a lawyer
Defending yourself from foreclosure can be complicated. Find a lawyer for legal advice or representation if you can. If you cannot afford a lawyer, you may be able to get help with your foreclosure from your local legal aid organization.
File a foreclosure answer
You must file an answer with the court within 28 days. This is true even if your foreclosure has been suspended or you are talking to your lender or servicer about other options. If you do not file an answer, you will lose your home.
To file an answer, fill out this form and take it to your clerk of court's office. You can find your clerk of court under "Local Government and Community Resources" on this page.
Look out for scams
There are scammers who try to take advantage of people who are trying to save their homes. Sometimes they try to get you to pay them cash. Sometimes they try to get you to sign over the deed to your home. Don't let scammers take your hard-earned money or your home. Some common scams are:
- Asking for cash so that they can “negotiate” a loan modification for you or "help save your home"
- Suggesting that you deed your house to them and then rent it back from them
- Posing as the federal government offering you “special bailout funds”
- Offering you cash to sign over the deed to your home (This lets them collect any money you are owed after your home is sold at auction.)
To keep yourself safe from scammers:
- Never sign papers under pressure.
- Never sign papers you don't understand.
- Don’t sign anything with blank lines or spaces.
- Never pay someone who is not your lender or loan servicer.
- Don't stop communicating with your lender or loan servicer.
- Never give out personal information (unless it's to your lender or loan servicer).
- Never sign over the deed to your home (unless you are selling it).
Read more to learn about the foreclosure timeline in Ohio.