• File an Answer to the Complaint: Borrowers must file their Answer to the Complaint within the time limits noted in the Summons that came with the Complaint. If Borrowers fail to file an answer, Borrowers need to appear at the default hearing. If the borrowers wish to obtain legal representation but cannot afford to pay for legal advice, a number of free resources are available. Additionally, borrowers may wish to obtain financial advice to determine if they can afford to keep the house. A number of resources are available both to help evaluate the situation either by yourself or with assistance. For more information, please see our comprehensive list of Resource Links. The Borrower’s Worksheet will also help you gather the important information and documents to help you decide. 
• Attempt to Sell the House: If the borrowers determine that they cannot afford the house, then the borrower might still be able to reduce the negative effects of the foreclosure by attempting to sell the house. Doing this may help the borrower reduce the balance that might be due from the borrower, set up the possibility of a “short sale”, or set up the possibility of a “deed in lieu”.
• Request a Loss Mitigation Package: If the borrowers determine that they can afford the house, then the borrower should request a Loss Mitigation Package from the lender or the lender’s attorney. Borrowers should fully and accurately complete the Loss Mitigation Package and provide supporting current documentation. Mail, e-mail or fax the completed package to the lender and the lender’s attorney. Borrowers should retain a copy. The information required in a loss mitigation package usually consists of the following necessary information:

1) proof of savings and income,

2) two preceding months of all borrowers' bank statements / paystubs (if borrower is self employed, a profit and loss statement will be required),

3) all borrowers' other income sources (including, but not limited to, social security, alimony and pensions,

4) an itemized list of monthly income and all monthly expenses,

5) two preceding years of signed and dated tax returns,

6) a hardship letter, and

7) an original, current utility bill (a bill downloaded from internet is usually not acceptable).

Please note that once you have submitted a complete financial package, you should update your information on a monthly basis by sending to the lender and lender’s attorney your most recent pay stubs and bank account statements.

• Save as Much Money as You Can: Saved money will either help you re-negotiate the loan or help you with transition costs.
• Attend Every Hearing Scheduled by the Court: The Lorain County Foreclosure Magistrates initiate settlement discussions whenever possible. To take advantage of this opportunity, the borrower should attend all court hearings prepared to negotiate and to provide current and complete information.