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6 ways to delay foreclosure in North Eastern Ohio Part One of Two

I do not recommend all of these approaches for all instances. However, by using these strategies you may be able to slow the sheriff sale and do the right thing.

North Eastern Ohio Delay Foreclosure Method 1Bankruptcy is a kind of “ace in the hole” for delaying foreclosure. It happens in Federal court so it trumps any kind of local court action. It has even been used to stop a sheriff sale on the morning of the sheriff sale. Of course you should avoid living that dangerously.

Chapter 13 bankruptcy
This bankruptcy reorganizes your debt and creates a payment plan. Recent law changes mean that more people will be forced to file this type of bankruptcy. If you were to simply file this bankruptcy but never make the payments it still may buy you as much as 45 to 75 days. If you make payments according to the plan and properly include your mortgage debt in the bankruptcy you should be able to permanently stop foreclosure. * Warning *- If you want to use this method to permanently stay out of foreclosure, make sure you do not make your chapter 13 payment even one day late. In my experience, banks restart the foreclosure process and refuse to accept any kind of catch up money or anything to stop the foreclosure process when borrowers default on a chapter 13 plan.

Chapter 7 bankruptcy
This bankruptcy dissolves all debt and absolves you of the responsibility to pay it. However recent changes have made it more difficult to actually get all of your debt actually forgiven through Chapter 7 bankruptcy. It will temporarily delay foreclosure while the U.S. Bankruptcy Court works out the details. Usually it will buy 45 to 75 days. When you file Chapter 7 bankruptcy the mortgage holder’s attorneys will typically file something called “A relief of stay”. This is just a request to have the freeze on the foreclosure in the local court that bankruptcy provides be removed so that foreclosure can still proceed. Having the foreclosure move forward though won’t re-obligate you to the debt. You can combine Chapter 13 bankruptcy and Chapter 7 bankruptcy for more delays on your foreclosure.

*warning– Your lender will often try to trick you into reaffirming your loan. This means they want you to re-obligate yourself to the underlying debt. Be very, very careful about doing this. Don’t let your emotions get the better of you. Remember, even if you are in a bad situation with your mortgage and your lender will give you a payment that is easier to make, you will likely have many thousands of negative equity. This means that in this uncertain economy if you lose your job or have to move, you won’t be able to easily sell your home. You will have to sell it on a short sale or let it foreclose.

North Eastern Ohio Delay Foreclosure Method 2- File a written answer in the court system asking for more time as soon as you get your notice of legal action. Just properly filing a written answer can buy you more time. If you don’t file a written answer and don’t even show up to your court date, the plaintiffs will be able to file to move towards sheriff sale without even proving their case. Filing an answer properly will help you make sure due process is followed in the lenders suite to take your home. This could easily buy 30 days or more in your home.

North Eastern Ohio Delay Foreclosure Method 3- Challenge the sheriff’s appraisal
You can challenge the sheriff’s appraisal and ask for your home to be removed from sheriff sale to be reappraised. The sheriff has an obligation to properly appraise your home. He is selling as a public servant and a misappraisal of your home in this forced sale could harm you. When the sheriff sale is scheduled and you believe the sheriff has not adequately valued your home you can present your evidence to the court and ask that the court reappraises your home. Doing this strategy could get you another 30 to 60 days in your home.

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Andy Morris is an Ohio real estate broker with an expertise in selling homes on a short sale. If your Ohio home is heading towards foreclosure or you owe more than your property is worth, please call Andy at 888-4-STOP-IT to see if you qualify for a short sale with your lender. Are you not in the North Eastern Ohio area? His team can negotiate short sales across the United States.

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