Foreclosure Prevention
Remember...
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" department.
Ask the lender to send you a “workout 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 financial status.
Mortgage Modification: Lender may extend the timing of the mortgage loan out over a new thirty (30) year period to reduce your monthly payment.
Partial Claim: If you have an FHA loan, HUD may consider lending you money to catch up on what you owe by means of an interest-free loan.
Short-Sale: You may be allowed to sell the property for less than the mortgage balance.
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 foreclosure.
Do Not Sign Anything You Do Not Understand
Don't sign over your deed to someone else unless this action relieves you of your loan obligation. Do not 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.
Checklist & Tips
Be Aware of Scams
Solutions sounding too good to be true usually are.
Be aware of predatory lending and DO NOT be a victim.
Be aware of unscrupulous people who will take advantage of your troubles.
Be aware of phony counseling agencies that charge large fees to perform services you can do for yourself with assistance from the sources listed in the directory above.
Prevention Checklist
Call United Way 2-1-1.
Call or write your lender. Be honest about your situation.
Stay in your home while you seek assistance.
Make an appointment with a HUD-approved counselor at 1-800-355-2227.
Foreclosure Info Directory
If you are facing foreclosure, help is as close as your telephone. Just make the first call...
Call United Way at 1-800-650-4357 (or 2-1-1), or visit United Way of Toledo for referral to the most appropriate local or national resources.
Hope is available to any homeowner in America having trouble paying their mortgage. Call 1-888-995-HOPE (1-888-995-4673) at any time. Counselors are available 24 hours a day, 7 days a week and provide free foreclosure prevention counseling. They will help you negotiate with your lender free of charge! Homeownership Preservation Foundation.
Foreclosure Information Directory
These organizations can help
Save the Dream Ohio
Ohio Department of Commerce
7 am - 7pm/M-F
1-888-404-4674
www.savethedream.ohio.gov (for property owners)
Foreclosure Intervention Hotline
24 hours/7 days a week
Ohio Home Rescue Fund managed by the Homeownership Preservation Foundation
1-888-995-4673
www.995hope.org
Legal Aid of Western Ohio (LAWO) & Advocates for Basic Legal Equality (ABLE)
Legal Services
(419) 724-0640 1-888-534-1432
www.legalaidline.org
Consumer Credit Counseling of Northwest Ohio
HUD-certified counseling agency
(419) 531-2227 1-800-355-2227
Lucas County Treasurer
Payment plans for delinquent taxes
Payment plans for current taxes
(419) 213-4305
Lucas County Veteran Services
Mortgage assistance to veterans
(419) 213-6090
Lucas County Auditor
Information to challenge your property value
(419) 213-4406
www.co.lucas.oh.us/auditor
NeighborWorks Toledo Region
Foreclosure rescue assistance
(419) 691-2900
www.nwtoledo.org
Northwest Ohio Development Agency
Foreclosure Counseling
(419) 243-3734
www.nodatoledo.org
Toledo Bar Association
Legal services
(419) 242-9363
www.toledobar.org
Toledo Fair Housing Center
Predatory lending remediation program
(419) 243-6163
www.toledofhc.org
Empowering & Strengthening Ohio's People (ESOP)
Loan modifications
(419) 464-9885
www.esop-cleveland.org
WGTE Public Media
www.wgte.org
