In Ohio, a homeowner has the right to redeem their home under the Ohio foreclosure right of redemption laws by making payment in full plus fees and costs prior to the time the court confirms the sale. There is no right of redemption after that time. If your lender has instituted foreclosure proceedings against you, you should speak to an Ohio foreclosure defense attorney.
Stopping Foreclosure in Ohio
It is possible to stop foreclosure in Ohio if you act quickly. Your attorney can assist you with the process. The key to stopping the foreclosure is to let your lender know that you are serious about saving your home from foreclosure. Even if you cannot afford to keep your home, you can negotiate a short sale or deed in lieu of foreclosure, which is much better for you and your lender than a formal foreclosure. In both instances, you should get your lender to agree in writing that the short sale or deed in lieu of foreclosure satisfies your mortgage debt. This way your lender won’t be able to come after you later for a deficiency judgment. If you want to keep your home, your lender may propose the following methods:
- Reinstatement. Bringing your loan current by paying the past-due amounts and any fees or costs.
- Loan modification. Your lender agrees to modify your existing loan by lowering your interest rate, extending the loan term and tacking any arrearages to the back end of your loan.
- Refinance. If you have equity, you can refinance to a lower interest rate and fixed term, and pay off your existing mortgage.
-
Forbearance. You enter into a short term payment plan with your lender to get caught up on past-due amounts. After the catch up period is over, you continue paying your regular mortgage payments.
Ohio Redemption Rights
Under the Ohio foreclosure right of redemption laws, you can redeem your home prior to the court’s confirmation of the sale by paying all the fees and costs to bring the loan current. Ohio laws do allow your lender to obtain a deficiency judgment against you if the sale proceeds are less than your loan balance. This means you owe your lender the difference between the sale proceeds and your loan balance. There is a two year statute of limitation on any deficiency judgment in Ohio, unless the borrower agrees to an extension.
Talk to an Attorney
It is recommended that you talk to an Ohio foreclosure defense attorney to find out about the Ohio foreclosure right of redemption and foreclosure laws. The attorney is an expert at Ohio foreclosure laws, and can explain them to you. The attorney can negotiate with your lender and represent you in court.
