When avoiding foreclosure, homeowners should be aware of the possible scenarios that can occur prior to receiving a “Notice of Default”, which can lead to the foreclosure of their home. We know the hardships of losing your home due to various circumstances, but a better understanding of the foreclosure process can help you prevent such a stressful occurrence.
First and foremost, acting early and preparing for your monthly obligations can be a great help in avoiding foreclosure. However, if you are unable to meet your requirements, you should know the process of ending up in default.
1st Missed Mortgage Payment – On your first missed mortgage payment, you will be given a 15 day grace period to update your outstanding due amount. During this first missed payment, your account will be marked at “default” as you already have incurred an outstanding value on your account. This is a sign that your mortgage account will be on a tail spin if not given proper attention. It is also during this stage that your bank or lender will now begin calling you to remind you of your dues and demand payment.
2nd Missed Mortgage Payment – On your second missed mortgage payment you will receive a “Demand Letter”. During this stage, the lender will be less lenient due to concerns about your ability to pay past dues. At this point the lender will allow the borrower a 90-day period from the date of the first missed dues to make outstanding collections current.
3rd Missed Mortgage Payment – On your third missed mortgage payment, the lender will send you a “Notice of Default” letter which will be left hanging on your front door. The same copy of “Notice of Default” will be handed over to the proper court (Judicial Foreclosure Laws in Ohio) for foreclosure process. At this stage, the borrower will be forced into crunch time with more pressure to make payments for mortgage loans or lose their home.
However, when you received that “Notice of Default” from your lender, another letter should also be sent to you as well, known as the “Time to Cure” letter. Once you have reached the 3rd missed mortgage payment, knowing how to respond and defend yourself from foreclosure in Ohio will be imperative.
Avoiding foreclosure in Ohio can be a stressful part of being a homeowner as no one is exempted from this once they start missing their mortgage payments. Please visit our blog section on Avoiding Foreclosures for more help on this topic.
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