Filing a bankruptcy will stop a foreclosure action for the period of time the bankruptcy is pending and will often afford you the time you need to get your payments caught up and save your home. The following is general information about how foreclosures work in Ohio. Bear in mind the timeline will be delayed by two or three months if you file bankruptcy.
The foreclosure begins when the bank files a foreclosure complaint against you and the county treasurer and anyone else it thinks has an interest in your house. Once you are served with the complaint you will have 28 days to answer. You can extend that 28 days by asking for another 28 days to retain counsel and have him review your records and the mortgage itself. If you don't file an answer within the 56 days the bank will ask for a default judgment as to you. After they have the default judgment is granted the bank will have to advertise the home for sale by sheriff for a month. This process actually takes about two months as the newspaper has to certify that it advertised the sale for a month and the court will want to be sure everything is in order before the sale proceeds. Then the sale takes place, typically in the courthouse. If the sale brings more than 2/3 of the appraised value of the house the bank will ask for confirmation of the sale. If the sale does not bring 2/3 of the appraised value the bank will have to advertise it for sale again and the second time the home can sell for any price. After the sale the bank will have to ask for confirmation of the sale. You can redeem your house by making all the back payments and paying the bank's foreclosure expenses right up until the time the sale is confirmed.
From the time the foreclosure is filed you can stay in the house for the next 4 or 5 months minimum whether you make any payments or not. If you want to save the house you must start saving toward catching everything up right away. Typically the bank will not accept any payments unless you have the whole amount you need to redeem. But you should save your money anyway because you will need it to get into another home if you can't save your present house.
To learn more, visit our Fayette office!
104 East Main Street P.O. Box 40
Fayette, OH 43521