Facing Foreclosure in Dayton? You Still Have Options.

You Are Not Out of Options — Even If You Have a Court Date

If you have received a foreclosure notice on your Dayton home, you are probably feeling overwhelmed. The legal language is confusing. The timelines feel tight. And it can seem like there is nothing you can do except wait for the worst to happen.

That is not true. In Ohio, you own your home until the sheriff sale is confirmed by the court. That means you have the legal right to sell your property at any point before confirmation — and in many cases, selling is the single best way to stop the foreclosure, protect your credit, and walk away with cash in your pocket instead of nothing.

Preston Hillard has helped homeowners across Montgomery County, Hamilton County, Butler County, Warren County, Greene County, Clark County, and Clermont County sell their homes before auction. He is a licensed Realtor with eXp Realty and an experienced cash buyer, which means he can evaluate your situation from both angles: would you net more money with a fast cash sale, or would listing the property on the open market give you a better outcome? He will tell you the truth either way.

Here is how the process works in Ohio, what your options actually are, and how to make the best decision for your situation.

The Ohio Foreclosure Timeline: What Happens and When

Ohio is a judicial foreclosure state. That means your lender cannot simply take your home — they have to file a lawsuit in court, and a judge has to approve every step. This process creates time, and time is your most valuable asset right now.

Here is the typical timeline for a residential foreclosure in Montgomery County and the greater Dayton area:

The key takeaway: you typically have 6 to 12 months from the first missed payment to the sheriff sale. That is enough time to sell your home on your terms — but only if you act. Every week you wait narrows your options.

How Selling Your Home Stops Foreclosure

When you sell your home and the proceeds pay off the outstanding mortgage balance (plus any fees and penalties), the lender has no reason to continue the foreclosure. The case is dismissed. The lien is released. Your credit report shows a sale, not a foreclosure — which makes a meaningful difference when you go to buy or rent your next home.

There are three common paths for selling a home during foreclosure, and Preston can help you evaluate all three:

1. Cash Sale (Fastest Option)

A direct cash sale to an investor like Preston eliminates the biggest risk factors: financing falling through, buyer inspections, and extended closing timelines. Cash sales can close in as few as 7 days — sometimes faster if the title is clean. This is often the best option when the sheriff sale is approaching, because you do not have the luxury of waiting 45 to 60 days for a traditional buyer to close.

In a cash sale, Preston pays all closing costs. There are no real estate agent commissions. The offer amount accounts for the property's current condition, so you do not need to make any repairs. If you have equity in the home, you receive the difference between the sale price and what you owe as cash at closing.

2. Traditional Listing (Maximum Price, More Time Required)

If you have enough time before the sheriff sale — ideally 60 to 90 days or more — and your home is in reasonable condition, listing the property on the MLS through a Realtor can sometimes net you more money. Preston is a licensed agent with eXp Realty and can list your home if that is the better path. He will run the numbers both ways and give you an honest comparison.

The risk with listing is time. If the property does not sell before the sheriff sale date, you are back to square one — but now with additional marketing costs and time lost. Preston always recommends having a cash backup offer in place while listing, so you have a guaranteed floor.

3. Short Sale (When You Owe More Than the Home Is Worth)

If your mortgage balance exceeds the current market value of your home (also called being "underwater"), a traditional sale will not generate enough to pay off the lender. In this situation, a short sale may be an option. The lender agrees to accept less than the full balance owed, and you sell the property at market value.

Short sales require lender approval, which can take 60 to 120 days. They are paperwork-heavy and require an experienced negotiator. Preston has handled short sale negotiations with major servicers and can manage the entire process on your behalf.

Factor	Cash Sale	Traditional Listing	Short Sale
Closing Speed	7 to 21 days	45 to 90 days	60 to 120+ days
Repairs Needed	None	Usually yes	None
Agent Commission	$0	5 to 6%	5 to 6% (lender pays)
Closing Costs	$0 (we pay)	1 to 3% seller	Varies
Lender Approval	Not required	Not required	Required (slow)
Best When	Timeline is tight	60+ days, home in good shape	Underwater on mortgage

What Happens to Your Equity in Foreclosure

One of the biggest misconceptions about foreclosure is that you lose everything. That is not necessarily true — but you do lose leverage the longer you wait.

Here is how equity works during foreclosure in Ohio:

If your home is worth more than you owe, you have equity. When you sell the property (whether by cash sale, listing, or even at sheriff sale), the mortgage balance, any liens, court costs, and penalties are paid first. Whatever is left belongs to you. The earlier you sell, the less those penalties and fees have accumulated — which means more money in your pocket.

If your home sells at sheriff sale, the sale price is often well below market value. Auction buyers are investors looking for discounts, and they are bidding on properties they may not have seen inside. The Montgomery County Sheriff's appraisal sets the minimum bid at two-thirds of appraised value, but properties frequently sell right at that minimum. That means you could lose tens of thousands of dollars in equity compared to what a private sale would have generated.

If your home is underwater, you will not receive equity at closing. But a short sale or deed-in-lieu of foreclosure can still protect your credit and help you avoid a deficiency judgment — where the lender sues you for the difference between what you owed and what the property sold for.

The math is simple: every month you wait in foreclosure costs you money. Late fees accumulate. Legal fees from the lender's attorneys get added to your balance. Property taxes continue. Your mortgage balance does not go down. Selling early preserves the most equity.

Montgomery County Sheriff Sale: What You Need to Know

The Montgomery County Sheriff's Office conducts foreclosure auctions on Fridays. Properties are advertised on the sheriff's sale website and in local legal publications for at least 30 days before the auction date.

Here are the specifics for Montgomery County:

• Appraisal requirement: Every property is appraised by a court-appointed appraiser before the sale. The minimum bid is set at two-thirds of the appraised value for the first offering.
• Deposit: Winning bidders must provide a deposit at the time of sale (typically $2,000 to $5,000 or a percentage of the bid).
• Confirmation hearing: After the auction, the sale must be confirmed by the court. The judge can reject the sale if the price is inadequate.
• Right of redemption: Ohio law provides the homeowner a right to redeem the property by paying the full judgment amount before the court confirms the sale. After confirmation, redemption is generally no longer available.
• Eviction: Once the sale is confirmed, the new owner can file for a writ of possession. You may have as little as 3 to 7 days to vacate the property.

If you are seeing your property listed on the sheriff sale website, your timeline is short — but you are not out of options. Preston has helped homeowners sell their homes even within weeks of a scheduled auction. The key is to act now, not after the gavel falls.

Situations We Handle Every Week

Why Work With Preston Hillard

Most people facing foreclosure in Dayton will hear from a lot of investors. Postcards in the mail. Cold calls. Texts from unknown numbers. What makes Preston different:

• Licensed Ohio Realtor. Preston holds an active real estate license with eXp Realty. That means he is legally obligated to act in your interest when representing you — unlike unlicensed wholesalers who have no such obligation.
• Cash buyer. He does not need to find a buyer for your home. He can close with his own funds, which eliminates the risk of a deal falling through.
• Local. Preston is based in Centerville, Ohio — right here in Montgomery County. He is not a national company sending an agent. He knows the neighborhoods, the court system, and the local market.
• Title problem specialist. Medicaid liens, judgment liens, clouded titles, missing heirs — these are situations that most buyers and agents walk away from. Preston solves them. His curative title resolution work is the foundation of his business.
• Honest evaluation. If listing your home on the MLS would net you significantly more money than a cash offer, Preston will tell you. He has no incentive to push a cash deal when a listing would serve you better.
• All 7 SW Ohio counties. Montgomery, Hamilton, Butler, Warren, Greene, Clark, and Clermont — Preston works across the entire southwestern Ohio market.

Preston's approach is simple: "I help homeowners figure out the best path forward for their situation. Sometimes that is a cash offer. Sometimes it is listing the property. Sometimes it is a creative solution that nobody else has brought to the table. My job is to present all the options and let you decide."

Other Options Besides Selling

Selling is not the only way to deal with foreclosure. Depending on your situation, these alternatives may also be worth exploring:

Loan Modification

Your lender may agree to modify the terms of your loan — reducing the interest rate, extending the repayment period, or adding the past-due amount to the end of the loan. Ohio's Save the Dream program and HUD-approved housing counseling agencies can help you apply. Loan modifications take time (30 to 90 days) and are not guaranteed, but they are worth pursuing if you want to keep the home.

Forbearance Agreement

A forbearance agreement temporarily reduces or suspends your payments, giving you time to recover from a financial setback. This works best for short-term hardships — job loss, medical emergency, divorce — where you expect your income to recover.

Deed in Lieu of Foreclosure

You voluntarily transfer ownership of the property to the lender in exchange for cancellation of the mortgage debt. This avoids the sheriff sale and is less damaging to your credit than a full foreclosure. However, the lender has to agree, and they will typically require that the property be listed for a period first.

Bankruptcy Filing

Filing for Chapter 13 bankruptcy triggers an automatic stay — a court order that immediately stops the foreclosure. You then have 3 to 5 years to catch up on missed payments through a court-approved repayment plan. This is a serious step with long-term credit consequences, and you should consult a bankruptcy attorney. But it can save your home if you have reliable income going forward.

Preston is not an attorney and does not provide legal advice. But he has worked alongside foreclosure defense attorneys, HUD counselors, and title companies throughout his career and can point you toward the right resources for your specific situation. For a detailed look at all your options, read our guide on foreclosure options for Ohio homeowners.

What Foreclosure Does to Your Credit — and How Selling Helps

A completed foreclosure stays on your credit report for 7 years and can drop your credit score by 100 to 160 points. It also triggers a waiting period before you can qualify for another mortgage: 7 years for conventional loans, 3 years for FHA loans, and 2 years for VA loans.

Selling your home — even if it is a short sale — is reported differently on your credit. A short sale typically impacts your score by 50 to 100 points, and the waiting periods for new financing are shorter. A standard sale (where you pay off the full balance) shows no negative mark at all. Your credit report simply shows the mortgage as "paid in full."

If you plan to buy another home in the future — or even rent in a competitive market — how the foreclosure resolution appears on your credit matters more than most people realize.

Dayton's Foreclosure Landscape

Montgomery County has historically had one of the higher foreclosure rates in Ohio. The Dayton metro area was hit hard by the 2008 housing crisis, and while the market has recovered significantly, foreclosure activity remains elevated compared to the national average. Economic shifts, medical debt, and aging housing stock all contribute to ongoing distress in the market.

The upside for homeowners facing foreclosure right now: Dayton home values have been climbing. Properties that were worth $80,000 five years ago may now appraise at $120,000 to $150,000. That means many homeowners in foreclosure have more equity than they realize — equity that can be preserved through a timely sale rather than lost at sheriff sale.

Preston monitors the Montgomery County sheriff sale listings weekly and tracks every property that enters the system across all 7 target counties. When he reaches out to a homeowner, it is because he has already reviewed the public records, understands the case timeline, and knows whether the math works for a deal that benefits both sides.