Ohio Governor Steps in to Stop Foreclosure in the State, But How Will His Efforts Fare?
With one of the highest foreclosure rates in the country and property values beginning to decline, the state of Ohio has been aggressively seeking solutions to its very own foreclosure crisis. One proposal on how to stop foreclosure in Ohio includes issuing taxable bonds to people who may be on the brink of foreclosure in the state.
Governor Ted Strickland said in a recent Christian Science Monitor story that one out of every 71 households faced Ohio foreclosure or filed for bankruptcy in 2005, and those numbers have only gotten worse in the last couple of months.
With that in mind, Strickland formed a foreclosure task force in March to begin addressing Ohio foreclosure problems. Comprised of public officials, lenders and nonprofits, this foreclosure task force aimed to look at the whole picture of this problem, devise some solutions on how to stop foreclosure in Ohio, and help minimize the pain that families have been experiencing.
Financing Fixed-Rated Mortgages to Stop Foreclosure in Ohio!
One effort to stop foreclosure in Ohio involves issuing $100 million in taxable bonds. Specifically, the Ohio Housing Financing Agency would issue this money to finance fixed-rated mortgages for homeowners who may need to stop foreclosure because their subprime, adjustable rate mortgages have skyrocketed beyond their financial means.
The agency has initially estimated that this money will provide refinancing for about 1,000 mortgages. Doug Garver, the agency's executive director, said in the Christian Science Monitor story that if the demand is there, the agency will go back in the market again.
And apparently the demand to stop foreclosure in Ohio via this solution has been there thus far. The story said that the agency began taking applications on April 2nd and received more than 300 calls on that day alone.
Program Director Rita Parise explained the tone of those calls in the story. She detailed the distress in the voices of people wondering how to stop foreclosure in Ohio. In some instances, Parise said that the agency may be able to help out. However, in other calls, Parise said that she had to tell people that there was nothing that could be done to stop foreclosure since those Ohio residents were already deep into the process.
Strickland has attributed Ohio foreclosure problems to various sources, including a "relatively flat" manufacturing economy and the rise of predatory lending. While Strickland and members of the Ohio Housing Finance Agency hopes that these fixed-rated mortgages will help stop foreclosure in the state, others are calling for even more urgent action.
Cuyahoga Country Treasurer Jim Rokakis said that communities and mortgage companies need to work together to stop foreclosure in Ohio. Specifically, Rokakis commented in the story that communities need to find a way to get mortgage companies to back off on adjustable rate mortgage interest hikes and Ohio foreclosure proceedings for at least some time, whether it be a moratorium or cooling-off period.
Need to Stop Foreclosure in Ohio? Don't Delay!
If you're worried that you may need to stop foreclosure in order to save your Ohio home, you should speak with a local attorney as soon as possible. An experienced attorney in your area can assess your current financial situation and help you determine if refinancing, debt workout plans, Chapter 13 bankruptcy or other foreclosure options may help you stop foreclosure in Ohio and keep your home. Fill out the simple form on this page to get started.