Ohio Homeowners, Answer the Phone, it’s Your Bank and They Want to Talk to You…
The Vice President of a Cleveland, Ohio based regional bank recently told a friend of mine that his bank had called thousands of Ohio homeowners who were behind on their payments to discuss their options. Out of these thousands of phone calls, only a handful of people even answered the phone! The reasons are obvious …fear, uncertainty, pride, and denial. Nobody wants to tell someone they can’t pay. 
The reason I am sharing this story is to show you that, if you are falling behind on your mortgage, you are not alone. Remember, they were calling thousands of people just like you that, for whatever reason (and there are many), could not pay their mortgage. You may have been a victim of a predatory loan or a layoff. It doesn’t matter the reason, what is important now is that you don’t stick your head in the sand and ignore the problem because it won't just go away. You should talk to the bank or contact an attorney to speak on your behalf. The worst thing you can do is to ignore the problem and let your opportunity to fix the situation slip away.
Once you have fallen behind on your mortgage (usually by three months or more) your lender will consider you in default, accelerate your debt and commence foreclosure proceedings. Ordinarily, once the bank has determined they will foreclose they will stop accepting payments and will not reinstate your loan unless you come up with the entire past due amount plus any legal fees and costs they have incurred.
Even after a foreclosure is filed you have options. Many counties, such as Cuyahoga, have voluntary mediation programs in which you can elect to participate when facing foreclosure (you should receive a notice of the program with your foreclosure papers from the clerk of courts). A qualified attorney may also be able to help you negotiate a loan work out to reduce your interest or payments, but this is more easily done before you incur legal fees and expenses of foreclosure. Depending on your overall financial situation you may want to contact an attorney to explore a Chapter 13 bankruptcy which allows you to keep your house and catch-up on your past due payments while also lowering and eliminating your other debt through a structured repayment plan. If you are facing foreclosure, contact an attorney now to learn more about your options.
