What happens in a foreclosure?
The first step is that the lender files a ‘complaint’ with the court that you owe the lender and haven’t paid. Once you receive the ‘complaint’ in the mail, you have 28 days to file a response with the court. If you don’t file an ‘answer’ with the court, the lender will ask for a default hearing. The lender cannot obtain a judgment against you without first being required to appear at the hearing. The hearing is in front of a magistrate who takes the final judgment (after hearing both sides) to the judge. Keep in mind that lenders have a loss mitigation department that tries to help borrowers in danger of default and could issue a forbearance agreement that could stop a legal action on a delinquent mortgage and perform a workout agreement, often lowering the interest rate.
In either case, you have the right to stay in your home until eight days after it is sold at the Sheriff Sale.
THE CITY OF MAPLE HEIGHTS
IS SPONSORING A
FORECLOSURE WORKSHOP
THE 2nd TUESDAY OF EVERY MONTH
MAPLE HEIGHTS LIBRARY BETWEEN 5:30 AND 8:30PM.
Please take the opportunity to speak to one of the counselors, even if you just want them to look over your loan document or have a question.
Please let us help you save your home.
Call Councilwoman Toni Jones at 216-587-2320 for more information.
These non-profit agencies can help you and their services are free of charge. These agencies have access to ‘rescue funds’ ($3-5,000) that are available if you are behind in your mortgage. These agencies will be available at the foreclosure workshop each month on a rotating basis.
Cuyahoga County Foreclosure Hotline 2-1-1 (First Call for Help) www.dontborrowtroublecc.org
Neighborhood Housing Services 216-458-4663 www.nhscleveland.org
ESOP 216-361-0718 www.esop-cleveland.org
Cleveland Housing Network 216-881-8443 x2 www.chnnet.com
Housing Advocates Inc 216-431-7400 www.housingadvocatesinc.com
Community Housing Solutions 216-231-5845 www.communityhousingsolutions.org
Consumer Credit Counseling 216-781-8624
HopeNow 888-995-HOPE www.hopenow.com
(DO NOT confuse HOPENOWUSAwith HOPE NOW. Businesses are cropping up that CHARGE FEES for services! Counseling services are FREE from nonprofit agencies.)
FORECLOSURE SCAMS
EQUITY SKIMMING: In this scheme, a con artist approaches a homeowner in distress and offers to repay the mortgage or sell the property if the owner signs over the deed and moves out-usually leaving him with the debt and NO HOUSE.
Signing over the deed does not necessarily relieve you of the responsibility to pay the debt.
CHARGING FOR PHONY COUNSELING SERVICES: Services are available free of charge to any homeowner by calling *211.
FLIM-FLAM: Take your time to read everything in front of you. If you can, take the documents to a lawyer. Never sign anything you don’t understand.
PHANTOM HELP: The scam artist charges enormous fees for light paperwork and phone calls, none of which saves the property. The con artist takes the homeowner’s money and gives the impression that he is going to save the home, but all he really does is delude the homeowners and keep them from getting qualified help when time is precious.
THE BAILOUT: In this scam, the homeowner is deceived into signing over the title in the belief that he will be able to remain in the house as a renter and eventually buy the home back. The terms of these scams are so onerous that the buy-back is impossible, the homeowner loses possession, and the rescuer gets most of all of the equity in the house.
THE BAIT-AND-SWITCH: In this scam, the homeowner thinks he is signing documents to bring the mortgage current, but instead he actually surrenders ownership. He usually doesn’t even know he’s been scammed until he’s served with an eviction notice.
NEVER sign a mortgage document with blank lines on them. Don’t sign any documents unless it is completely filled out.
Taken from the National Crime Prevention Council www.ncpc.org/publications