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Does Filing for Bankruptcy Stop an Ohio HOA Foreclosure?

Marc Dann

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OH Foreclosure Timeline

Understanding HOA Foreclosure In Ohio

If you are an Ohioan who lives in a condominium, townhome or a single-family home that is part of a development you may be required to pay dues to a condominium association (COA) or a homeowners’ association (HOA). Falling behind on your dues can lead to serious problems. In most cases, the covenants, conditions and restrictions (CC&Rs) that govern the COA or HOA give the association the right to place a lien on your home. Stay behind, and the association may file a foreclosure action against you—even if you are current on your mortgage.

In Ohio, COAs, like banks and mortgage servicers, must file a lawsuit to foreclose on a condominium. HOAs have specific foreclosure procedures that are outlined in the association’s governing documents.

Will Filing for Bankruptcy Eliminate HOA Dues and Liens?

If your COA or HOA places a lien on your home and then initiates a foreclosure action in order to collect delinquent dues, filing for bankruptcy may be your best option. That’s because the right type of bankruptcy may enable you to discharge your liability for unpaid dues that accrued before you filed and because it will automatically stay the foreclosure action while your bankruptcy case is processed.

While bankruptcy may provide short-term relief that will enable you to stay in your residence, in all likelihood bankruptcy will NOT eliminate the lien on your property. That is why we recommend you contact DannLaw’s experienced bankruptcy attorneys if you have fallen behind in your dues payments and are receiving threatening letters or calls from your association. We will be happy to discuss your situation and provide sound advice on how you should proceed, including which type of Bankruptcy is right for you, Chapter 13 or Chapter 7.

The Type of Bankruptcy you File Makes a Difference

In most instances, Chapter 7 bankruptcy is not an effective way to deal with COA/HOA dues delinquencies because it will not eliminate the lien they placed on your home or result in the discharge of dues you will owe after you file.

If you are dealing with a COA/HOA lien and/or foreclosure we recommend filing under Chapter 13 of the federal bankruptcy law. Chapter 13 will enable you to pay your pre-bankruptcy arrears via a court-approved repayment plan over a period of three to five years. As long as you make the monthly payments called for in your plan the COA/HOA will be barred from taking your residence. You may also be able to have your lien eliminated if it is considered an unsecured junior lien. This will depend on the priority status of the lien as well as the rules of the jurisdiction in which you reside.

It is important to note, however, that you MUST pay the COA/HOA fees that come due post-filing. If you fall behind again your association may go to court, seek a lift of the automatic stay, and proceed with the foreclosure. Post-bankruptcy you will no longer be protected so you must pay your COA/HOA fees when they become due to avoid facing a renewed threat of foreclosure.

Finally, even if you surrender your property at some point, you will be liable for any COA/HOA fees that become due while you wait for the bank to foreclose and the title to be transferred from you to the bank. If you don’t pay the fees the association has the right to sue you personally in order to collect the money owed.

Consult With An Ohio Bankruptcy Lawyer Today

We recognize that filing for bankruptcy is not always the best option. That’s why we urge you to call us to arrange a free consultation with our experienced bankruptcy attorneys. We will be happy to discuss your case, give your sound advice, and help put you back on the road to financial security.

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Ohio Foreclosure Defense

If your house has been foreclosed and sold at a sheriff sale, you may be wondering if the buyer can legally lock you out of your home immediately following the sale. The answer is no. As long as the property has not been abandoned and is sitting vacant, the buyer must go through certain procedures before they can legally evict you and change the locks. In Ohio, this means the buyer must either obtain a Writ of Possession from the sheriff or initiate an eviction action in municipal court.

After an Ohio Sheriff Sale Has Occurred…

Here is an overview of the steps a buyer must take before they may engage in eviction actions like changing the locks on your home. For a more detailed look at the foreclosure process, see our Ohio Foreclosure Timeline.

  1. The sheriff sale occurs. If no one buys the home, the lender will be the entity that buys the property.
  2. A “redemption period” begins immediately after the sheriff sale takes place. The sheriff must inform the Court that a sheriff sale has taken place within 60 days. The Court then has 30 days to confirm the sale. During this time, the foreclosed homeowner has the right to redeem their home for an amount equal to the judgment plus fees and other costs accrued during the foreclosure process. You must act as quickly as possible if you plan to redeem your home because although the process may take up to 90 days it could be completed in less than a week. You will not have a set amount of time to redeem your home.
  3. Once the sale is confirmed by the Court the deed will be prepared, the buyer will pay the purchase price and a new deed will be recorded. This means the buyer has officially taken possession of the house and can begin eviction proceedings.
  4. The new owner may now either apply for a Writ of Possession, which gives the sheriff the authority to evict anyone living on the premises or begin an eviction action in municipal court. Once the buyer has obtained a Writ of Possession the sheriff will provide notice of the date on which the eviction will occur. Generally the eviction will occur within three to seven days.
  5. If the eviction date arrives before you vacate the sheriff will remove your belongings from the house and the owner can change the locks.

You still have rights before and during the eviction process. Your options are as follows:

  • Wait It Out – You can simply wait for the sheriff to evict you. If you choose this option, it is important to be proactive. Use the time to develop a plan, save money, and find a new place to live.
  • Stay the Eviction – You may go to the court and ask the judge to stay the eviction. You must present a valid reason for the stay, so be prepared to argue your case.
  • Cash for Keys – In some instances the owner will offer you money to vacate the property before the eviction date.
  • Bankruptcy – You have the right to file for bankruptcy. In most cases, filing a Bankruptcy Petition entitles you to an “Automatic Stay” of the eviction. This injunction halts the eviction and other actions your creditors may take. Bankruptcy is not an easy or simple decision and should only be pursued with the help of skilled Ohio bankruptcy attorneys like the legal team at DannLaw.

Did the New Owner Change Your Locks Before You Have Been Properly Evicted?

Don’t be the victim of an illegal lockout. If the bank or new owner of your home has changed the locks or taken other eviction actions without following proper procedure, be sure to contact the foreclosure defense attorneys at DannLaw. We have the knowledge and expertise to fight for you and ensure that appropriate actions are taken against the new owner.

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OH Foreclosure Timeline

Understanding Mortgage Forbearance Agreements

If you fall behind on your mortgage, your lender may offer alternatives to foreclosure that will enable you to stay in your home. The alternatives can include loan modifications, repayment plans, and forbearance agreements which are specifically designed for borrowers who are having difficulty making their mortgage payments due to temporary problems like unemployment, illness, unexpected medical bills, or other types of financial hardship.

Under the terms of a forbearance agreement your lender will reduce or even suspend mortgage payments and agree not to initiate foreclosure proceedings against you for a set period of time. You must agree to bring your loan up to date by paying the delinquent principal, interest, taxes, and insurance that is due by the end of the forbearance period. You will then resume making your full payments.

FHA-insured Loan Forbearance Plans

If you fall behind on a mortgage loan insured by the Federal Housing Administration (FHA), the government requires your lender or servicer to determine if you qualify for one of the loss mitigation programs offered by the FHA. Those programs include formal, informal and “special” forbearance. Any qualified borrower may enter into a formal or informal forbearance plan. Special forbearance is available only to homeowners who are struggling to make their mortgage payments because they recently became unemployed.

Mortgage Forbearance Agreements vs. Loan Modifications

As mentioned above, forbearance agreements are designed to help homeowners who are experiencing short-term, temporary financial difficulties. They are not a long-term solution for delinquent borrowers who have more fundamental financial problems. Those borrowers, including people who have adjustable rate mortgages with an interest rate that has reset to a level that makes their monthly payments unaffordable, must usually seek remedies other than forbearance.
If you are in that category, a loan modification which permanently changes the terms of the mortgage by extending the life of the loan, reducing the interest rate, or removing a portion of the principle may be the right option for you. Unlike a forbearance agreement, a loan modification is a long-term solution that will help resolve your delinquency and save your home from foreclosure.

Contact An Ohio Foreclosure Defense Attorney Before Entering into any Agreement with a Mortgage Lender or Servicer

Whether you are considering forbearance, a loan modification, or other type of repayment plan, you should always contact an experienced foreclosure attorney before entering into any agreement with a mortgage lender or servicer. DannLaw’s skilled legal team will guide you through the process, make sure you understand what your lender is offering, and help ensure that that the choice you make is right for you, your family, and your financial future.

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DannLaw today filed suit against the owners of the Homewood Suites by Hilton hotel located in Mahwah, New Jersey and Hilton Worldwide Holdings, Inc. for repeatedly violating both the Americans with Disabilities Act (ADA) and New Jersey’s anti-discrimination laws. The suit, filed on behalf of Erika Symmonds, alleges that the defendants twice failed to provide ADA-compliant accommodations after confirming that mobility accessible rooms were available at the Mahwah, NJ facility. The pleading in the case, which was filed today in the Federal District Court for the District of New Jersey may be viewed and downloaded here:0001. (09-04-2019) COMPLAINT against APPLE SEVEN HOSPITALITY OWNERSHIP INC. HILTON WORLDWIDE HOLDINGS INC. (Filing a

According to Attorney Emily White, Managing Partner of DannLaw’s Disability Rights Practice Group, Symmonds and her family, including her grandmother who has a mobility impairment traveled to the Mahwah area to visit relatives for the winter holidays in December 2017 and again in 2018.  A few weeks before each trip, Symmonds researched accessible rooms, and made a hotel reservation at Homewood Suites in a room designated “mobility accessible”. Symmonds then followed up by phone to confirm that the room was both accessible and available so that her spouse, young daughter, and grandmother could be in close proximity in a shared suite. In both instances, however, the hotel failed to provide a mobility accessible room, resulting in humiliating and distressing experiences for her family.

In December 2017, the family arrived at Homewood Suites Mahwah and were informed that the accessible room they had reserved was not available.  The family was instead placed in an inaccessible room.  As a result, Symmonds’ then 92-year-old grandmother was not able to independently use the bathroom and had to rely upon physical and emotional support from family members.

In December 2018, Symmonds again booked a room at Homewood Suites after receiving assurances from the hotel staff that the mobility accessible room was available and would be provided.  But when Symmonds arrived with her family late on Christmas evening, she found that the room she was given was not mobility accessible.  The bathroom lacked grab bars around the toilet and the space was too small to accommodate a walker or a wheelchair.  Because the bathroom was not accessible, the family member with a disability was unable to independently access it, and the family spent the morning after Christmas laundering the grandmother’s clothing. When one of the family members alerted the hotel front desk staff about the situation, she was told that the hotel considered the room to be “mobility accessible” because the tub was large enough to fit a stool that could be requested from the engineering department.

The ADA, which includes specific technical specifications for mobility accessible rooms, requires hotels to provide equal access to people with disabilities and to ensure that rooms are available to travelers with disabilities. Since 2012, the ADA has mandated that online reservation systems describe the features of accessible rooms so that travelers can independently identify whether a room has accessible features such as a wheel-in shower or grab bars. In addition, the law requires that people with disabilities have equal opportunity to reserve an accessible room.

In 2010, Hilton entered into an agreement with the United States Department of Justice to improve its reservation system. The agreement resolved a lawsuit alleging that:

  • Hilton “Systemically, and across its various brands…fails to provide individuals with disabilities the same opportunity to reserve accessible guest rooms using its on-line … reservations systems”;
  • Hilton “Failed to provide accurate, reliable information about its accessible sleeping rooms and amenities throughout its reservations system”;
  • “…individuals with disabilities are unable to reserve, on-line, accessible sleeping accommodations with either a tub or a roll-in shower.”

“Hilton’s failure to provide the accessible rooms reserved by Symmonds represent a serious violation of the ADA,” Attorney White said.”

“At a time when so many people are caring for elderly relatives or other family members with disabilities, hotels must provide the legally-required services families need,” Symmonds said. “It is disappointing that a company like Hilton, which could be a leader in disability access, refuses to meet even the baseline requirements of the law. Hilton should know better and do better to ensure that the rooms it designates as ‘mobility-accessible’ have grab-bars near toilets and enough space to make it possible for individuals with walkers and wheelchairs to enter bathrooms,” Symmonds continued. “We are filing suit in the hope that Hilton will honor its commitment to people with disabilities and their caregivers by fully complying with the ADA at all its properties.”

Along with compensatory damages, the suit asks the court to order Homewood Suites by Hilton Mahwah and Hilton Worldwide Holdings to ensure that equal access to accessible guest rooms is provided to individuals with disabilities and their families in the future and that such compliance is to be monitored by the federal court.

For more information, please contact Attorney Emily White at 614-705-0107 or ewhite@dannlaw.com

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Attorneys for Cleveland, Ohio-based DannLaw, one of the nation’s leading consumer protection law firms, today filed separate class-action suits in Federal Court against Phoenix Financial Services, LLC and Central Research, Inc. The suits allege that both firms have repeatedly violated the Fair Debt Collections Practices Act (“FDCPA”), the federal law that prohibits debt collectors from engaging in abusive, deceptive and unfair practices.

Former Ohio Attorney General and DannLaw founder Marc Dann said the case against Phoenix Financial Services involves the firm’s efforts to collect “zombie” debt. “In Ohio, creditors are barred from suing to collect after four years,” he said. “But if the debtor makes a payment after the statutory time limit, the dead debt is brought back to life. That’s why the term zombie applies.”

“The law requires companies like Phoenix to tell consumers they aren’t obligated to pay a debt after the time limit has expired,” Atty. Dann continued. “Unfortunately, Phoenix and a number of other companies featured in a Washington Post story about the growing zombie debt industry, ignore that requirement and instead try to trick people into paying thousands of dollars they don’t actually owe. The practice is illegal and immoral so we’re asking the Court to make our clients whole and to bar the company from misleading consumers.”  The suit was filed in the United States District Court for the Northern District of Ohio, Eastern Division at Cleveland.

According to Attorney Brian Flick, Managing Partner of DannLaw’s Cincinnati office, the suit against Central Research alleges that the Lowell, Arkansas debt collection firm has engaged in false, deceptive, and or misleading conduct by sending collection notices to debtors that list the amount due but do not disclose that the balance may increase due to late fees, interest, and other charges.

“A number of courts have ruled that debt collectors must tell consumers the amount they owe when they receive a demand letter will grow each and every day,’ Atty. Flick said. “Central’s conscious decision to disregard those rulings and the FDCPA have harmed our lead client and hundreds of other Ohioans. We’re determined to hold the company accountable for willfully violating the law.” The Central Research case was filed in the United States District Court for the Southern District of Ohio, Eastern Division.

Both suits seek statutory and actual damages and include a demand for a jury trial.

For more information, please contact Atty. Marc Dann at 216-373-0539/mdann@dannlaw.com or Atty. Brian Flick at 513-951-7124/bflick@dannlaw.com

The pleadings and exhibits may be viewed/downloaded by clicking on the links below:

Allen_Candace_2019_08_08_Complaint_draft_v_2.0

Allen_Candace_2019_08_09_Exhibit_A_-_Dunning_Letter

Hall_Warren_2019_08_08_Complaint_v_2.0

Hall_Warren_2019_08_09_Exhibit_A_-_Dunning_Letter

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Former Ohio Attorney General Marc Dann recently asked the members of the Ohio General Assembly to eliminate the criminal statute of limitations for rape and extend the civil statute of limitations for sexual abuse. Atty. Dann who led efforts to strengthen the state’s rape, sexual abuse, and sexual predator laws as both a member of the Ohio Senate and Attorney General cited the sexual abuse scandals that have roiled the Catholic Church, U.S. Gymnastics, Penn State, and the Ohio State University as reasons why reform is needed now more than ever.

Following is the letter he sent to Speaker of the House Larry Householder, Senate President Larry Obhoff, and all members of the GA in early June:

June 3, 2019

President Larry Obhoff

Senate Building

1 Capital Square 2nd Floor

Columbus OH 43215

Speaker Larry Householder

77 S.High St. 14th Floor

Columbus OH 43215

*Sent via electronic mail

 

         Re:            Criminal and Civil Statutes of Limitations for Rape

 

Dear Mr. President and Mr. Speaker:

I write to you today to express my support for legislation that will eliminate the criminal statute of limitations for rape in the state of Ohio. Like the current and former attorneys general who registered their support for this proposal earlier this week, I devoted much of my time as Ohio’s AG to ensuring that law enforcement had the resources needed to pursue, prosecute, and incarcerate offenders.

While I applaud the AGs for their advocacy on this important issue, anyone who truly cares about the victims of this heinous crime knows we must do more than erase the criminal SOL. We must also extend the civil statute of limitations to 20 years so that victims have the time they need to hold their rapists and their rapists’ enablers accountable for the pain and suffering they have caused.

I first learned about the terrible physical and psychological pain victims endure in 2005 when I led the effort to pass Senate Bill 17 while serving as the Ranking Member of the Senate Civil Justice Committee. After hearing harrowing testimony from women and men who had been sexually abused as children, both the Committee and the Senate unanimously passed the bill which contained a provision that extended the civil SOL to 17 years.

Unfortunately, in one of the ugliest and most destructive displays of the negative impact big money donors can exert in the state’s pervasive “pay-to-play” culture, the nation’s multi-billion-dollar insurance companies placed the pursuit of profits ahead of the interests of victims and succeeded in stripping the civil SOL extension from SB 17 when it reached the House.

Today, 14 years after that shameful act of legislative malfeasance, the need to significantly extend the civil SOL in more urgent than ever before. A fact underscored by the sexual abuse scandals that have roiled the Catholic Church, U.S. Gymnastics, Penn State, and the Ohio State University. In each of these cases as well as many others, powerful officials and administrators looked the other way as innocent boys and girls were abused. And, in many of these cases those boys and girls, who often did not come forward until years after they were assaulted, were left with little opportunity to obtain the justice and just compensation they deserved because the civil stature of limitations had run out. In effect, they have all been victimized twice: by their rapists/abusers and by a political system held captive by the insurance industry and institutions that vigorously oppose legislation that would hold them accountable.

Fortunately, Representatives Kristen Boggs and Tavia Golonski are taking up the work I and my Senate colleagues of both parties began in the Senate in 2005. They have promised to introduce a bill that will address both the criminal and civil statutes of limitations. Extends the civil SOL to 20 years and tolling it until a child victim turns 18 years of age will represent a monumental step for victims and impose much-needed accountability for those who committed monstrous acts and those who knew what was happening but chose to look away.

It is my sincere hope that the current and former AGs who registered their support for eliminating the criminal SOL will join me in advocating for victims past, present, and future.

Sincerely,

Marc Dann