The desperation felt by a homeowner trying to stop foreclosure in the wake of financial challenges can make that person an easy target for an unscrupulous mortgage lender. The sudden loss of income from unemployment or a pay cut associated with a lack of overtime or fewer hours worked can make it difficult to keep up with monthly mortgage payments.
For several quarters, the rate of foreclosure around the nation, including states with a high share of institutional investors, such as Ohio, decreased overall. The most recent quarter has seen a dramatic increase of 66 percent of homes that face foreclosure action due to the default of a loan repayment. This means that families who are already facing financial hardship might face the very real threat of losing their home.
If you were one of the unfortunate victims of the foreclosure crisis in Ohio, this “news” may not be news to you. But the trickle-down effect throughout the Ohio economy could have affected many others and may continue to do so. While help was on the way, the waiting was the hardest part.
When a home is foreclosed upon, the homeowner will often vacate the premises. After all, the house is being taken back by the bank, whether the owner likes it or not. They take the opportunity to move on with their life and leave the house behind. But if the bank does not officially repossess the home, the owners are still responsible for taxes and other costs. This is called a zombie foreclosure.
Many homeowners who encounter difficulty keeping up with their mortgages will seek to use any of a variety of ways to try to stay in their home. These will frequently involve some form of an attempt to modify the terms of their mortgage, lowering the payments and interest sufficiently to allow them to keep up with their payment schedule and to remain in the house.
Those who are in enough financial trouble to be contemplating bankruptcy will, if they are homeowners, often also find themselves having to think about the prospect of what it would be like to lose their homes to foreclosure. Your mortgage payment is typically the largest of your bills, and when you are already juggling bills it can be like trying to juggle a bowling ball.
Foreclosure is the process by which a lender, such as a bank or mortgage company, takes possession of a property when the borrower defaults on the mortgage. While this may seem like a simple concept, many people do not realize there are different types of foreclosures. There are three main types of foreclosure: judicial, non-judicial, and strict. Judicial foreclosure is the most common. It is also the only type of foreclosure used in Ohio.
A new report shows that foreclosure rates have fallen since 2011, but are still twice as high as the average rate in the 1990s. 2014 saw a drop of nearly 20 percent over 2013 with only about 44,000 homes foreclosed upon. But, with the average 20 years ago being about 21,000, there is still a long way to go in the recovery from the predatory lending period in the early 2000s.
Although reports show an overall decline in new foreclosures in the state, a homeowner in Hamilton County facing financial challenges might not be breathing a sigh of relief. Other reports put Ohio ahead of all other states number of homes taken by banks following foreclosure proceedings.
The term "zombie foreclosure" might conjure up scenes from the movie "Night of the Living Dead," but for the more than 7,000 homeowners who abandoned their homes before their lenders completed the foreclosure process by taking possession, the term could represent a lost opportunity.