Dayton Bankruptcy Law Blog

No one in Ohio set out to buy a house with hopes of falling behind on mortgage payments and eventually going into foreclosure. That just does not happen.

Instead, young couples and other homeowners sign up for a mortgage dreaming of the day they will pay it all off and officially own the home they love. Sometimes, though, the dream falls apart. A major medical diagnosis coupled with a crippling layoff can even catch financially stable families off guard. 

Not being able to keep up with your bills can prove overwhelming, and especially if things have gotten to the point where you fear you are going to lose your car or your home. Many Americans are currently struggling in the face of mounting debt, but unfortunately, some for-profit companies prey on their fears and pressure them into debt settlement arrangements that often do more harm than good.

When you enter into an arrangement with a debt settlement company, you typically must transfer that company an agreed-upon amount of money on a monthly basis. In turn, that company is supposed to negotiate with your creditors and work out an arrangement that allows you to pay back only a portion of your debts. While this may sound good on the surface, there is considerable risk involved when working with a debt settlement agency, and here is why.

If you count yourself among the many people across Ohio who are struggling with overwhelming debt, you may be giving some consideration to filing for bankruptcy. While many people consider filing for bankruptcy as a method of regaining control over their finances and lives, many people also understand very little about the process. For example, as someone filing for bankruptcy for the first time, you may have heard the terms “Chapter 7” and Chapter 13” thrown about, but you may not understand the difference between the two filings or understand which option might be more appropriate for you.

According to the American Bar Association, the primary difference between a Chapter 7 bankruptcy and a Chapter 13 is that a Chapter 7 bankruptcy involves more of a straight-up liquidation, while a Chapter 13 bankruptcy involves some type of repayment plan. Additionally, in a Chapter 7 bankruptcy, you typically have to surrender all assets that do not qualify as exempt, while, in a Chapter 13 filing, you may be able to keep certain assets, provided you work out – and stick to – a repayment plan.

You have discovered a property in a promising neighborhood that has several desirable amenities. The location allows a future buyer to have easy access to several local hotspots and the overall condition appears to be alright. However, the only problem is that the home is a foreclosure. At Kennel Zeigler LLC, we understand the risks that buyers face when looking to purchase foreclosed properties in Ohio.

A home that has been foreclosed may potentially provide you with several rewarding benefits including the fact that it may be priced-to-sell instead of what you would normally pay elsewhere. Depending on the home's condition, you may be able to get away without doing a whole lot of work which means saved resources and saved money. According to bankrate.com, foreclosures are different from your typical home purchase for any of the following reasons: 

• You rarely will be able to negotiate below asking price. 
• You will most likely need to sign a preapproval letter before the lender will accept your offer.
• You will be responsible for all necessary repairs.