Posted on September - 14 - 2010 by Alex C. Palazzolo
Dayton and Miami County Ohio Bank & Court Foreclosure Step-by-Step Process
This is the foreclosure process in Dayton and Miami County Ohio. It’s basically the same process throughout the state of Ohio (and many other states) with time frames varying based on the county that you reside.
What Is The Foreclosure Process In Montgomery and Miami County Ohio?
Foreclosure has unfortunately become a very popular vocabulary term heard by most everyone these days. Even though most have heard about it, many don’t really understand what it really is outside of knowing it’s about loosing your house. A foreclosure is a legal process by which a Dayton mortgage company, mortgage servicer, or mortgage investor seeks to take possession of your home. A foreclosure cannot be started against a homeowner until the owner has defaulted on his mortgage.
How Many Payments Behind Can I be Before Foreclosure?
When the homeowner is behind on payments it’s known as being in default. Many believe that you have to be three months late before foreclosure can be initiated (which is what is typically seen), however a foreclosure can legally start the day after the homeowner misses a payment. Generally, in most cases of foreclosure the homeowner is at least three to four months delinquent. Usually around 30 days before the foreclosure is filed with the court, the owner will receive a notice of default letter from the bank. Sometimes this letter is referred to as an intent to accelerate letter. The letter explains to the homeowner that unless they pay the back-due amount by a certain date, foreclosure proceedings with the courts will begin against them.
Notification of the Foreclosure Filing
Unless the Notice of Default letter sent by the bank has been satisfied a foreclosure complaint in the Court of Common Pleas in Montgomery (Dayton, Huber Heights, Englewood, Union, Clayton, Brookville, Fairborn, Beavercreek, Belmont, Kettering, Trotwood, Centerville, Miamisburg, Monroe, West Carrolton) or Miami County Ohio (Troy, Piqua, Tipp City, West Milton, Covington). When the foreclosure complaint is filed, a copy is then sent to every person who has an interest in the property via certified mail. This means that any person who signed the mortgage will receive the complaint, the spouse of that person, the County Treasurer (this is required by law), and any other person or entity that might have an interest. Any other entities who might have an interest are entities who may have sued you before and have a judgment lien against your home.
What Do You Do When You Receive The Foreclosure Complaint?
When you receive this certified letter from the Montgomery or Miami County Ohio Court, it is very important that you open, read and respond to the letter. There are several people who have seen their homes taken from them because they refused to respond to letters from the Court. The letter from the Court will tell you that you have 28 days to respond to the foreclosure complaint. This response can take the form of a Motion to Dismiss (if the mortgage company is improperly bring the lawsuit), an Answer, or an extension (which asks for more time to answer the complaint). An answer is simply a response to the allegations contained in the complaint. The answer tells the court that either the allegations in the complaint are true, false, or that you aren’t sure if they are true or false.
What Happens If You Don’t Respond To The Complaint?
If you fail to answer the complaint by the due date, the mortgage company will ask for a default judgment against you. This is essentially where the company tells the court that you have not objected to their complaint, so the court should enter judgment for the company. In other words, they win and you lose. Failing to answer actually speeds up the foreclosure process from 6-8 months to 3-4 months. Assuming you answer, the most likely next event is that the mortgage company will file a motion for summary judgment. This is where the company tells the court that, while you did answer, you have no legal defense to the foreclosure and so the court should enter judgment in the company’s favor. In many cases, this is inevitable. Most people have no legal defense to the foreclosure.
Next Steps After The Bank Wins The Judgement
Once a judgment is entered against you, the company will ask the court to order a Montgomery or Miami County Ohio sheriff’s sale. The sheriff’s sale is where the sheriff will auction off your property to the highest bidder. The majority of the time this will be the bank. It is important to note that the homeowner, nor any family or close friends, can bid on the property unless they pay the full amount you owe. After the sheriff’s sale, the court will confirm the sale. After the confirmation, the bank will ask for a writ of possession if the property is not already vacant. If the court grants this writ of possession, the new owner can show up at the house with a sheriff’s deputy and forcibly remove you from the property. This is where the foreclosure process completely ends. Depending on how busy the court is, this process can take on average from 4 to 18 months to complete.
There are other better solutions a home owner may have than letting their property go through the foreclosure process. Find more information about this at Greg Greenwald’s Dayton Ohio Short Sale Website.
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