Short version: Ohio foreclosures go through the courts, so nothing happens overnight. If you have equity in your house, selling before the sheriff's sale usually means you walk away with that money instead of losing it.
How foreclosure works in Clark County
- Missed payments. After a few missed payments the lender sends a breach or default letter.
- The lawsuit. The lender files a foreclosure complaint in the Clark County Court of Common Pleas and you get served.
- Your answer. You generally have 28 days after you're served to file an answer with the court. Don't ignore this.
- Judgment. If the case isn't resolved, the court enters a judgment and orders the house sold.
- Sheriff's sale. The house goes to auction. Afterward the court confirms the sale.
- Redemption window. Until the court confirms the sale, you can generally still redeem the house by paying the full amount owed.
What to do this week
- Open every letter from the lender and the court. Write down the case number and any dates.
- Call your loan servicer and ask about a repayment plan, forbearance or loan modification.
- Call a HUD-approved housing counselor. It's free.
- Ask the court whether foreclosure mediation is available for your case.
- Find out your payoff amount and what the house is worth. That tells you whether you have equity.
When selling is the right move
If you can't catch up and you have equity, selling protects it. At a sheriff's sale the house often sells for less than market value, and fees and interest keep piling on. When you sell first, the mortgage is paid off at closing and the rest goes to you.
I can usually close in 7 to 14 days, which matters when a sale date is on the calendar. The title company pays the lender directly.
If you owe more than the house is worth, a sale needs the lender's approval as a short sale. That's slower, but it can still be better than a foreclosure on your record.
Watch out for these
- Anyone who wants an upfront fee to "save" your house.
- Anyone who asks you to sign your deed over and keep living there as a renter.
- Anyone who tells you to stop talking to your lender or your lawyer.
I never charge sellers a fee, and I'll put every number in writing before you sign anything.
Common questions
Will selling stop the foreclosure?
Once the loan is paid off at closing, the lender dismisses the case. The timing has to work before the sale is confirmed, so call early.
Does a sale hurt my credit as much as a foreclosure?
Missed payments are already reported, but a completed foreclosure is usually worse. Ask a housing counselor how it applies to you.
What if I'm only a little behind?
Then call your servicer first. Catching up may be your best option, and I'll tell you that.