Trash Out – Lock Out
It is illegal for a mortgage company or lender to remove a borrower’s personal belongings from a property and change the locks before the foreclosure process is complete. This action is called a “trash out” or “lock out”.
In Ohio, a lender has to wait 120 days after one missed payment to send a borrower a foreclosure notice. Then the borrower has 28 days to reply to the lawsuit or face default judgment. During this time the borrower is allowed to continue living at the property.
The lender has to notify the borrower through the sheriffs office when they are required to move – which occurs when the property is sold. Usually the borrower is not required to move out during the foreclosure process until the property has been sold. The property could have been sold by the consumer, an approved short sale, or through a sheriff sale.
The property becomes a sheriff sale if the borrower loses the lawsuit or faces default judgment. The borrower may continue living on the property until after confirmation of a sale. This could be a day or a couple months depending on how long it takes for the property to sell.
After confirmation of the sale, a writ of possession is filed. At this time the lenders will notify the borrowers of a move out deadline. If the borrowers fail to move out by the deadline, then the lenders have the right to hire a trash out company to remove the remaining possessions and change the locks for the new owner.