When a bank or loan holder applies to foreclose on a property, there is a tremendous amount of paperwork that the loan officer needs to review. An important document that is included with this paperwork is a foreclosure affidavit. This affidavit is signed by the loan servicer as a way of verifying that he or she has reviewed and double-checked the accuracy of all the foreclosure documents submitted.
Like bankruptcy, foreclosure stays on your financial record. It impacts your credit score. In the future, lenders will be able to see that you didn't pay on your loan and lost your house, and it can impact your ability to get new loans and lines of credit.
Declaring bankruptcy is a big decision, and it is important to carefully consider all the potential benefits, weighing them against the specifics of your situation. Only then can you determine exactly what type of bankruptcy is the right fit for you and how to proceed.
Your Chapter 7 bankruptcy proceedings are all about absolving you of as many of your existing debt obligations as possible. This means that -- after selling off your unexempt assets -- the creditors to whom you owe money will not receive anything else, and your remaining debts covered by the bankruptcy will be dissolved.
When you can't make your mortgage payments, your lender could begin sending you foreclosure notices. Because you haven't paid your loan as agreed, your Ohio lender can threaten to take possession of your home, evict you and sell the property to recoup the loan.