If you’re behind on your mortgage, you may be lying awake wondering what to do. Maybe the late notices keep coming. Maybe you just got court papers. Either way, you’re not alone, and you may have more choices than you think.
I’m Lonnie McInnis. I help homeowners throughout Cleveland and Cuyahoga County. In this post, I’ll lay out the common ways people try to avoid foreclosure, in plain words, with a quick pro and con for each. Some of these options have nothing to do with me, and that’s fine. I want you to know all of them. Where I do come in, it’s only as a possible buyer of your home, buying for my own company. I don’t represent homeowners, and I’m not your agent, broker, attorney, or lender.
This is general information, not legal, tax, or financial advice. Rules and deadlines depend on your loan and your case. For advice about your own situation, talk with an attorney, a HUD-approved housing counselor, or a tax professional.
Start Here: Don’t Ignore It
The Consumer Financial Protection Bureau (CFPB), a federal agency, says that in most cases the worst thing you can do is nothing. Open your mail. Take your servicer’s calls. The earlier you act, the more options you usually have.
Two Deadlines to Know (and Why They May Not Fit Your Case)
The federal 120-day rule
Under a federal rule, your mortgage servicer (the company you send payments to) generally can’t make the first notice or filing for foreclosure until you’re more than 120 days behind.
That gives many people some time to make a plan. But it doesn’t apply to everyone or every loan. For example:
- It only covers certain loans. These rules apply to a mortgage on your principal residence (the home you live in). They don’t cover a home equity line of credit (HELOC) or a reverse mortgage.
- There are exceptions. The servicer can move sooner if the foreclosure is based on a due-on-sale violation (for example, the home was transferred without the lender’s OK), or if it’s joining another lienholder’s foreclosure.
- The clock may already be running. If you’re already well past 120 days, this time may be gone.
Small servicers (generally those that service 5,000 or fewer loans that they or an affiliate own or made) still have to follow the 120-day rule, but many of the other protections below don’t apply to them.
Cuyahoga County foreclosure cases: Ohio’s 28-day answer deadline
Ohio foreclosures go through the court. In Cuyahoga County, that’s the Court of Common Pleas. If you’re served with a foreclosure complaint and summons, Ohio’s court rules generally give you 28 days after service to file a written answer.
A few things can change that timing:
- How you were served matters. The 28 days usually run from the date service was completed, which depends on how the papers were delivered.
- Service by publication runs differently. If you were served by a newspaper notice (used when someone’s address is unknown), the 28 days run from when publication is complete.
- The court can change deadlines. A court can sometimes extend time for good cause, but you shouldn’t count on it.
If you aren’t sure which date applies, don’t guess. Call an attorney or Legal Aid right away. Missing the deadline can let the case move faster without your side being heard.
For a step-by-step look at what happens after papers arrive, see my post on what happens after a foreclosure notice in Ohio.
Option 1: Ask Your Servicer for Help
Your servicer may have ways to help you avoid foreclosure. The industry word for this is loss mitigation. It just means options the lender may offer instead of foreclosing.
To be considered, you’ll usually fill out an application and send papers like pay stubs and bank statements. Keep copies of everything, and write down who you talked to and when.
Why applying early matters
Federal rules give you some protections once your servicer has a complete application. How much protection you get depends mostly on when that complete application arrives. Here’s what to take away:
- Apply as early as you can. Ideally, get your application in well before any sale date is set. The earlier your complete application is in, the more protections may apply.
- “Complete” is the key word. Ask your servicer in writing what’s missing, and send it quickly. Keep copies and note the date you sent everything.
- Once a sale date is close, protections shrink. If your complete application arrives 37 days or less before a scheduled sale, the main federal protections generally don’t apply.
- The rules require a review, not a yes. Your servicer has to consider you fairly, but it doesn’t have to approve you for anything.
- Not every loan is covered the same way. These protections are for the home you live in, usually for your first complete application, and smaller servicers don’t have to follow most of them.
If you already have a sale date, or you’re not sure where you stand, call a HUD-approved housing counselor or an attorney right away.
Here are the main options your servicer may offer.
A Repayment Plan
You catch up on missed payments a little at a time, on top of your regular payment.
- Pro: You keep your home, and your loan stays mostly the same.
- Con: Your monthly payment goes up for a while. It tends to work best when the money trouble was short-term.
Forbearance
Your servicer lets you pause or lower your payments for a set time.
- Pro: It can give you breathing room during a hard stretch, like a job loss or medical bills.
- Con: You still owe the full amount, and interest may keep adding up. Ask exactly how and when you’ll pay it back.
A Loan Modification
Your lender changes the terms of your loan so the payment is easier to manage. That might mean a longer term, a lower rate, or adding missed payments to the balance.
- Pro: It may make your payment fit your budget, and you keep your home.
- Con: It takes time and paperwork, and the lender decides whether you qualify. You may end up paying longer.
Option 2: Call a HUD-Approved Housing Counselor
A HUD-approved housing counselor can help you understand your options, build a plan, and deal with your servicer. HUD is the U.S. Department of Housing and Urban Development.
- Pro: Help may be available at no cost, and they aren’t your lender.
- Con: There may be a wait, so call early.
To find one, call (800) 569-4287 or search on HUD’s website.
Option 3: Talk to an Attorney
An attorney can look at your case, your deadlines, and any defenses you may have. They can also explain whether options like bankruptcy make sense for you.
- Pro: You get advice about your own situation, not general tips.
- Con: Private attorneys cost money. If money is tight, the Legal Aid Society of Cleveland offers free legal help to people who qualify in Cuyahoga County and nearby counties. Call (888) 817-3777 to start an application.
Option 4: Sell the House
If your home is worth more than you owe, selling may let you pay off the loan and the costs of selling and keep what’s left. The CFPB says you don’t need your servicer’s approval to sell, but it can help to tell them your plans.
- Pro: You may protect your equity (the part of the home’s value that’s yours) and avoid a foreclosure.
- Con: You have to move, and you need enough time to sell before the case goes too far.
You can list with a licensed agent, or sell directly to a buyer, including a company like mine. If you sell to me, I’m the buyer, buying for my own company. I’m not your agent. Get any offer in writing and take your time to compare it with your other choices.
My post on selling a house when you’re behind on mortgage payments goes into more detail.
Option 5: A Short Sale
What if you owe more than the house is worth? A short sale may be an option. That means selling for less than you owe, with your lender’s OK.
Here’s what you need to know before counting on one:
- Approval is required, and it isn’t guaranteed. Your servicer has to approve it. So does the owner of your loan (the investor), and sometimes a mortgage insurer or a program like FHA. Any of them can say no, ask for changes, or take a long time.
- You may still owe the difference. The gap between what you owe and what the lender gets is called a deficiency. Depending on your loan and Ohio law, you could still be responsible for it. If the lender agrees to waive it, get that in writing before you close, and read it carefully.
- Every lien has to be dealt with. A second mortgage, HELOC, tax lien, or judgment lien usually has to be paid, released, or settled before the sale can close. Each lienholder makes its own decision, and some may ask for money or say no.
- There may be tax effects. If a lender cancels part of your debt, the IRS generally treats the canceled amount as income, and you may get a Form 1099-C. Some exclusions exist, but each has its own rules and dates. For example, the IRS says the exclusion for a main home’s mortgage debt (“qualified principal residence indebtedness”) generally covers only debt discharged before January 1, 2026, or under a written agreement made before then. Talk with a tax professional before you sign anything.
- Some loan programs have their own rules. These can affect how the home is sold and who can buy it.
- Pro: It may be an alternative to foreclosure.
- Con: You have to move, the lender decides, and any balance or tax issue has to be worked out ahead of time.
I explain the process in more detail on my Cleveland short sale page, including what lenders usually ask for and what happens when there’s more than one lien. If I’m part of a short sale, it’s only as a possible buyer for my own company. I don’t represent you, and your lender makes the decision.
Option 6: A Deed in Lieu of Foreclosure
“In lieu” just means “instead of.” You sign your home over to the lender, and in return the lender doesn’t foreclose.
- Pro: It may be quicker and simpler than a foreclosure.
- Con: You have to move, and not every lender will agree. Ask whether it covers the whole amount you owe, get any waiver in writing, and ask a tax professional about possible tax effects.
When Liens Get in the Way
Sometimes the mortgage isn’t the only problem. Unpaid property taxes, court judgments, or a second mortgage can all put liens on a house. A lien is a legal claim against the property for money owed. Liens usually have to be paid or settled before a sale can close.
Sometimes lienholders agree to a payoff or release so a sale can still happen. Sometimes they don’t. If I’m thinking about buying a house that has liens, I look at them closely, with a title company, before I decide whether to make an offer. I do that as a possible buyer for my own company, not as your representative.
Watch Out for Scams
Some people take advantage of homeowners in trouble. The CFPB warns about anyone who:
- Asks you to pay up front for help
- Guarantees a loan modification or says you won’t lose your home
- Tells you to stop paying your mortgage, or to pay someone other than your servicer
- Asks you to sign over your title or sign papers you don’t understand
Much of the help you need is free, from your servicer, a housing counselor, or Legal Aid. If something feels off, slow down and ask questions.
Want to Talk It Through?
If your home is in Cleveland or anywhere in Cuyahoga County and you’re wondering whether selling could make sense, including selling to me, I’m glad to talk. It’s a free, no-obligation conversation. I’ll listen, ask about your home, your loan, and any liens, and tell you plainly what I see. If a short sale may be part of the picture, I can tell you whether I’d be interested as a buyer. Your lender would still decide.
My role, in plain words
- McInnis Property Solutions may buy properties for its own account. If I make you an offer, I’m buying for my own company.
- I don’t represent homeowners. I’m not your agent, broker, attorney, or lender.
- I don’t give legal advice, and I don’t defend foreclosure cases.
- I can’t promise any result.
If a repayment plan, a loan modification, a housing counselor, an attorney, or listing with an agent looks like a better fit, I’ll tell you that.
If we do talk about an offer, I’ll explain in writing how the sale would work, and give you any paperwork Ohio law requires, before you sign anything. You’re always free to have an attorney or someone you trust look it over first.
Call or text me at (216) 238-3211, or send me a message. You can also read more about me and how I work.
About McInnis Property Solutions
McInnis Property Solutions is an independent real estate solutions company. We may purchase properties for our own account. When we make an offer or buy a property, we act for ourselves and do not represent homeowners. We do not provide legal advice or foreclosure defense. We are not a licensed real estate broker or agent, a mortgage lender, a law firm, a government agency or program, or a HUD-approved housing counseling agency, and we are not affiliated with your mortgage servicer. Any short sale, lien release, or forgiveness of a remaining balance is decided by the lender or lienholder, and no result is guaranteed. This article is general information, not legal, tax, or financial advice.