Toledo Municipal Court Housing and Environmental Division
555 North Erie Street
Toledo, Ohio 43604
- Do not ignore letters from creditors. Some foreclosures can be halted if
you communicate with your lender promptly.
- Typically, lenders do not want your home; they want your house payments.
- Foreclosure proceedings may cost your lender a lot of money.
- Often it is in everyone's best interest to agree on new terms that
modify the current mortgage.
- Call or write your lender.
- Contact the lender's "Loss Mitigation" or "Foreclosure Prevention"
- Ask the lender to send you a "work-out' packet to update your financial
information including current income, expenses and other debts.
Your lender may offer these options:
- Forbearance Agreement: A written repayment plan based on your current
- Mortgage Modification: Lender may extend the timing of the mortgage loan out
over a new thirty-year period to reduce your monthly payment.
- Partial Claim: if you have an FHA loan, HUD may consider lending you money
to catch up what you owe by means of an interest free loan.
- Short-Sale: You may be allowed to sell the property for less than the
- Deed-In-Lieu of Foreclosure: As a last resort, it may be best to give your
house back to the lender. This may be better for your credit than an actual
Don't Sign Anything You Don't Understand
Don't sign over your deed to someone else unless this action relieves you of
your loan obligation. Don't lose your home and damage your credit history.
Consult people and agencies willing to help. Remember... the most important
action you can take is to communicate with your lender.