Falling behind on your bills can impact your credit. Falling behind on your mortgage can impact your ability to remain a homeowner. Regardless of why you find yourself struggling to make your mortgage payment, your bank will likely only give you so much leeway before they start taking action. Efforts to collect on that debt could include foreclosure on your property.
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.
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.
The general trend for home values in the United States, in the wake of the recession and the dramatic dip in value that it created, has been a notable increase. While there are exceptions, many homeowners have seen the values of their homes rise.
When you get that foreclosure notice in the mail, it feels like the lender wants to take your home away from you. You imagine someone sitting in an office, grinning at the fact that they get to take the house, even though you made payments on it for years.
That Craftsman house with the flower boxes in the window and the white fence around it was your Ohio dream home.
When we face something unpleasant, our first thought is sometimes, "I'll think about it tomorrow."
Holders of mortgages on their homes have had a rough 10 years, especially in Ohio. Thousands of families have seen their homes foreclosed since the beginning of the Great Recession, which also damaged the financial infrastructure of the region and many of its cities.
For decades, home ownership has been an essential part of the American Dream. People can experience happiness and success without owning their own home, but being responsible for one's own property is still one of the widest avenues to the middle class.