Did you receive a Foreclosure Complaint?

by Glenn E. Forbes on Feb. 05, 2023

Bankruptcy & Debt Bankruptcy Real Estate  Foreclosure Lawsuit & Dispute  Mediation 

Summary: Discussion of options available to save your home

If you receive a foreclosure notice upon your house, there are options available to help you retain your home.  Loan modifications are often entered into with the lenders, however, you need to qualify for a loan modification and submit the required documentation to the lender to determine if you qualify. FORBES LAW can assist with collection of the proper documentation to provide to the bank.  The basic documentation to submit for a loan modification is as follows:

1) A specific form with detailed information regarding your income and debts. 
2) Last three months bank statements
3) Most recent tax returns signed and dated
4) 30 days most recent paystubs or; profit and loss for the last 3 months if self-employed
5) Any contributor income
6) A hardship letter signed and dated
7) A tax form to go to the IRS to request your last 3 years tax returns

If the loan modification package submitted to the bank is not complete, the lender will not review until it is complete.  Documentation will get old and go “stale” and you will need to start the process from the beginning if that occurs.  FORBES LAW will work with you to make sure your package is complete when submitted for review and will also work with you to get any further documentation that may be requested to the lender timely.  

If you are offered a loan modification, usually a three month trial period with the new payment amount will occur. The bank reviews the loan modification package and proceeds with a review to determine if the interest can be lowered, the monthly payment amount lowered, and if the past due amount can be capitalized and added to the end of your loan to extend the term of the loan.  Payment plans are an option as well, but usually only occur for 12 months, which would mean you would need to pay your current monthly payment along with the past due amount owed to the lender broken up over 12 months.

Many courts in Ohio offer a mediation program for foreclosures to work out a potential loan modification with the lender.  FORBES LAW will provide you with advice regarding whether such programs are available in the court in which your foreclosure is pending and will work with the bank during the mediation process.

Finally, if you do not want to retain your home, FORBES LAW can help with options available for liquidation.  

If you find yourself in a foreclosure situation, call FORBES LAW so we can provide you with all the options available to you.

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