In Ohio it takes 18 months to foreclose on a property. That is six months longer than the national average. One to two years is common in the Dayton Ohio area, local industry experts agree. The national average is 378 days.
This delay can cause some homes to sit vacant for extended periods and become maintenance problems, or worse targets for vandals or arsonists. Foreclosed properties also affect property values, tax revenues and eventually even services like fire and police that rely on that tax revenue.
Tom Fitzpatrick, an economist with the Federal Reserve Bank of Cleveland, states that vacant, tax delinquent and foreclosed properties lower the property value of every property within 500 feet about 10 percent. “When you sort of have these vacant, foreclosed properties in high poverty areas . . . it doesn’t take long for people to come and strip out metals, take out appliances.
Before the current crisis it was stated that it took six to nine months to foreclose on a home, now nine months is considered short.
While the foreclosure process may take longer in Dayton, it still might not allow enough time for homeowners to plan for the move from their home. Foreclosure allows a lender to take over a person’s home, which means that the homeowner and their family must move out, but may still be required to make certain payments to their mortgage lender. Foreclosures can negatively affect a person’s credit, making it difficult for them to qualify for credit or loans in the future.
What You Need To Understand About Foreclosure
It is important for homeowners facing foreclosure to know that filing for bankruptcy can stop or slow foreclosure. Chapter 7 or Chapter 13 bankruptcy may provide necessary relief from foreclosure. Chapter 7 is a liquidation proceeding, so a person’s property may still be sold. However, Chapter 7 allows a person time to plan for the loss of their home because an automatic stay is put into place upon filing. And most of the time a primary residence will not be liquidated. Chapter 13 involves establishing a reorganization plan for a person’s debts, including overdue mortgage payments. By making installment payments to their lender over time, a person may be able to keep their home.
Despite that, foreclosures in Ohio take longer than the national average, local homeowners should still act quickly if they hope to keep a home that is in foreclosure. One of their options is to file for bankruptcy before a sheriff’s sale in order to retain the property.
Source: Dayton Daily News, “Foreclosure process takes an extra 6 months in Ohio,” Chelsey Levingston, Aug. 12, 2012