Offices of Jacob M. Rzepka

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Typical Options


At the Law Offices of Jacob Rzepka we can assist you dealing with the lender in making the following options available to you. Lenders are often resistant to providing these option but we can pave the way for many home owners by asking the lender for several alternatives for a borrower that is having trouble making payments.

Repayment Plan: A Repayment Plan is used when you have experienced a temporary reduction in income or financial hardship. This option is structured to cure the delinquency over a period of time by paying a full amount, plus a payment toward the existing delinquency each month. Lenders may require an initial payment. The good news here is that there are programs in place to help delinquent borrowers. We can assist you in obtaining up to $3000.00 in assistance to help you remain in your home. This help is not a loan, but a grant. Payments can be structured to fit within the family budget. The modified monthly payment is based on your financial ability to pay.

Loan Modification: If you have experienced a permanent reduction in income due to certain classes of hardship e.g. death of a spouse or unforseen medical expenses, Lenders may be coaxed into modifying the loan with terms more favorable to the borrower. By negotiaiting a change to one or more of the original terms of your loan we may be able to reduce the monthly payment amount.

Pre-Foreclosure Sale: "Listing your Property for Sale." This is a last resort option. It basically allows a borrower that is unable to make payments to get out from under an oppressive loan. You still lose the property but you also lose the headaches, heartaches, and stress of a looming foreclosure.

This option must be exercised with caution. Housing values in your area may have declined which may result in proceeds from sale that is less than the total debt due. the property. Careful planning and negotiations with the lender are required to assure no lingering obligations after the sale.

Deed-in-lieu of Foreclosure: A deed in lieu of foreclosure is essentially a transfer of property to the lender in consideration for forgiveness of the debt. Under Ohio law a borrower may still be liable for a deficiency judgment for what is owed on the property after the lender sells it. Again negotiations with the Lender can eliminate this pitfall. It is important that you obtain legal assistance to minimize your exposure to an ongoing financial obligation.

Short Refinance: There are many residential lenders in your area that may be able to assist you in obtaining a third-party loan to payoff your defaulted loan. This option is very rare in most instances. If you have a lot of equity in the home this may be a good approach. If like many you are "upside down" that is you owe more than the house is worth finding a lender may be very difficult.

Partial Claims-for FHA Loans Only: FHA has established a program to help home owners in trouble. We may be able to help you obtain obtain a one-time payment from the FHA Insurance fund to bring your mortgage current. You may qualify if:

  • Your loan is at least 4 months delinquent, but no more than 12 months delinquent.
  • You are able to begin making full mortgage payments.

When your lender files a Partial Claim, HUD will pay your lender the amount necessary to bring your mortgage current.

You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest-free and is due when you pay off the first mortgage or sell the property.

Full Reinstatement: Full repayment of all money and Lender expended foreclosure fees.This is the best option as it completely ceases foreclosure and does not require legal intervention. We can assist you in limiting the excess fees typically charged by the Lender.

Full Payoff: A Payoff, in which the note is paid in full, leaves no loan balance. We can assist you in limiting the excess fees typically charged by the Lender.

Law offices Jacob M. Rzepka 5035 Mayfield Rd. Lyndhurst, Ohio 44236 (216)-923-1309
Hours By Appointment - Evening and Weekend Appointment Available

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