Archive for 'Ohio'

In the past two years, while the rest of Ohio is struggling from large numbers of foreclosed properties for sale, the number of foreclosure filings in Summit has been declining.

But in the first half of this year, the pace of foreclosure filings has started to climb up again, with April having the highest number of filings.

In the first half of the year, 2,249 foreclosure actions were filed by mortgage lenders, compared to the 2,088 filed in the first half of last year. The highest monthly total was 452, which occurred in April.

Analysts in Summit cited the continuing economic downturn and the end of foreclosure moratoriums as the main cause for the increase in filings after a two-year decline. They also expect that the increased pace of foreclosure will increase the number of foreclosed properties for sale in the area.

The continued rise in unemployment rate, which is now at a staggering 9.7 percent in Summit, and the expected readjustment of adjustable-rate mortgage loans to higher rates will worsen the foreclosure situation in the county.

Another reason for the increased pace of foreclosure is the end of foreclosure moratoriums, particularly those of Fannie Mae and Freddie Mac. These two government-controlled enterprises own or guarantee nearly 31 million mortgage loans worth approximately $5.5 trillion, representing around half of all home loans in the country.

Mary Schoenfeld, top executive of American Eagle Mortgage and chairperson of the Summit County Consumer Affairs, said that the federal programs launched either by former President George Bush or by President Barack Obama have failed to help troubled homeowners.

However, Judge Elinore Marsh Stormer insisted that many mortgage lenders are willing to help distressed homeowners, but about half of those with foreclosure filings do not respond to the foreclosure lawsuits.

Stormer said that many homeowners abandon their homes without trying to negotiate with the lenders, just allowing their houses to become foreclosed properties for sale. She also added that about 60 percent of foreclosure filings the court referred for mediation have been settled.

The number of foreclosed properties for sale is expected to rise further in Ohio, according to Jennifer Flatter, an officer at the Ohio Department of Commerce.

Despite the state’s own foreclosure prevention program called Save the Dream, more than 11,000 foreclosure actions were filed in Ohio in May, based on a nationwide real estate study. One house in every 446 housing units in the state was hit with a foreclosure action and more than 7,000 units were already foreclosed properties for sale.

The city of Springfield in Ohio has received $2.27 million in federal funds to boost its programs to counter the effects of bank REO properties. The funding, made possible under the Neighborhood Stabilization Program, will go to communities that qualify under federal guidelines.

Community Development Director Shannon Meadows said that the funding is a big help in addressing the needs of neighborhoods severely affected by the unabated increase in the number of bank REO properties.

One housing recovery program in the city involves a budget of $850,000 to purchase, rehabilitate and re-sell abandon and vacant foreclosed properties in Southgate and Highlands areas. These bank REO properties were repurchased by banks at sheriff’s auctions. Under the program, foreclosed properties will be purchased only from banks.

The program requires that eligible buyers should have good credit standing, must bring with them $1,500, secure a loan from the bank and have earnings of $72,250 for a household of four and $50,550 for individual.

Typically, buying bank REO properties requires at least 2.5 percent down payment. However, potential homebuyers should prepare to shell out more. Springfield can help potential homebuyers procure as much as $20,000 for closing costs and down payment.

Bank REO properties will be sold based on their purchase and rehabilitation costs. Proceeds from the sale will be used to buy and rehabilitate other bank REO properties.

Another program aimed at reducing the number of foreclosed houses in the city offers eligible homebuyers an opportunity to borrow money directly from the city of Springfield. Additionally, foreclosed houses will be rehabilitated to make them energy-efficient. In line with this, workshops will be conducted to educate homeowners on energy efficiency.

Springfield housing program coordinator Jackie Sudhodd said that landscapes will be improved to make repossessed homes attractive to potential homebuyers. She said that the goal is not just to make distressed properties pass code but to make them marketable.

Meanwhile, Meadows pointed out that making foreclosed homes livable will greatly improve conditions in neighborhoods severely affected by the foreclosure crisis. She added that the longer these repo homes remain unsold on the market, the more expensive it is to rehabilitate them.

One out of 160 houses in Ohio is at risk of becoming bank REO properties in the first quarter of 2009, making the state the 11th highest nationwide in terms of foreclosure rate.

Earlier this year, Ohio State passed into legislation its foreclosure prevention programs. Part of the fund for this project will finance the Homeowner Helpline Program implemented through its counties and cities. $2.7 million from this program went to Franklin County and will be used in part for the Franklin Country Foreclosure Mediation project. This project aims to establish proper communication between lenders and delinquent homeowners as part of the ongoing process to stop foreclosures.

With this mediation program, homeowners can coordinate with their lenders on how to restructure their loans and make revised payment options that would be beneficial for both parties. This would be a good avenue for discussion before notices are filed and foreclosures commenced.

The largest city in Franklin County, Columbus City, approved $540,000 from its funds to finance the remediation project. The city council believes the program will save everyone precious time and money and will help the local court system be more effective. Since the program is conducted before foreclosures are finalized, homeowners are spared from an expensive litigation process and help them stay in their homes.

The mediation program includes a 60-day extension for homeowners who have received notices of foreclosures. Counselors assist homeowners get in touch with attorneys from the lending company and initiate discussions on mortgage restructuring that would be affordable for the family and prevent delinquent mortgage payments.

Both lenders and homemakers in trouble are supporting this program. A successful mediation would mean homeowners retain use of their homes without the danger of foreclosures. Lenders and banks on the other hand do not want these properties to remain in their books as it will cause additional burden in maintenance costs and insurance for them.

Franklin County homeowners who need help in their mortgage are encouraged to access the Homeowner Helpline. Other avenues are also available for homeowners to join the mediation program which includes counseling agencies and the state’s Save the Dream program.

In the past year, the number of foreclosure filings in Ohio has reached a record 83,000. For this reason, the Stark County Common Pleas Court has initiated the launching of a mediation program that will bring together mortgage lenders and distressed borrowers so that both parties can avoid a foreclosure.

The so-called mediation program has actually started last April. Out of the 84 foreclosure filings for the first three months, over 50 percent of the homeowners were able to stay in their homes. It is funded by the filing fees gathered from the foreclosure cases and has roughly cost the court about $50,000 to date.

Troubled borrowers have various reasons for getting themselves in this unfortunate situation. Some of them were just irresponsible when it comes to paying their mortgage dues while others have fallen on hard times due to an illness or unemployment. In any case, the Common Please Court encourages these distressed homeowners to avail of the program in order to avoid foreclosure.

Basically, the mediation program requires the troubled borrower to fill out a particular form that will allow bank officials and lawyers to assess their financial situation and determine if they are qualified to negotiate the terms of their existing mortgage.

These mediation notice forms are sent by the court to foreclosure defendants together with the other documents. If interested, the distressed homeowner simply sends the completed form back. All paperwork, statistics and scheduling of mediations are attended to by the staff at the Community Mediation Center.

For the County Pleas Court, foreclosures can be avoided if the homeowners are aware of their rights and have been given sufficient information and facts about the foreclosure process to make informed decisions.

Although many mortgage lenders were initially wary of these mediations because of the cost and delay, most have agreed to sit down with the borrowers and negotiate. With the large inventory of bank foreclosures for sale in the market, this is probably the best option that they have to recover losses.

Nine major mortgage loan providers in Ohio signed a pact with state authorities that is being hailed by many as a bold new step towards keeping homeowners out of foreclosure that has not been seen anywhere else in the nation. The nine companies, which cover about 55% of the mortgages currently in effect in Ohio, have agreed to pursue several paths of action designed to slow the foreclosure rate by helping homeowners in default pay off their debts and avoid foreclosure.

The main tenet of the agreement is that the mortgage companies involved will work with homeowners to refinance or modify adjustable rate and sub prime mortgages, the main culprits behind the soaring rate of foreclosure. They also agreed to make efforts to contact defaulted borrowers about their situation as soon as possible, and to create certain incentives for staff, personnel and foreclosure counselors to help homeowners avoid foreclosure in situations where it is a threat.

While the pact is not legally binding, it signals a willingness on the part of the state to hold mortgage companies accountable for the high foreclosure rate, and a willingness on the part of mortgage companies to deal with the situation. This could be an interesting situation to watch unfold and see how effective it is at curbing Ohio’s foreclosure rate.

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In an effort to step up existing programs aimed at curbing the trend in foreclosures throughout the state, Ohio state officials announced on Wednesday plans to provide owners of distressed properties with free legal aid.

The program will become part of the “Save the Dream” program which was launched last month, and will be available to homeowners who can’t afford legal services when dealing with the possibility and ramifications of a foreclosure. The income limit for a family of four to be eligible for the program is $54,000. The program relies heavily on the pro bono work of local attorneys, whom the state petitioned by mail. So far, about 350lawayers have received training in foreclosure prevention tactics form the Ohio State Bar Association, and many more are expected to soon be trained and ready to help homeowners.

Ohio is desperately seeking away to curb homeowner default and foreclosure, after more than 160,000 distressed properties were issued notices of default in 2007, and 89,000 wound up being sold or repossessed through foreclosure proceedings. The move may have been influenced by the work of Massachusetts state officials, who instituted free legal aid to homeowners facing default and foreclosure a month ago.

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As the data for May was released, Ohio officials and residents can not help but feel disappointed. There were 4,133 new defaults, 4,096 homes for auction and 4,985 Ohio foreclosures. Overall, the state recorded an amazing 13, 214 foreclosure filings and remained at the fifth spot behind Florida.

Many experts are speculating when the foreclosures condition will turn in favor of sellers. Right now, buyers of Ohio bank foreclosures are obviously enjoying the wide selection of housing units that include condominiums, town houses, and single and multi-family structures. Of course, it would not be a buyer’s market without the affordable foreclosure homes prices. In Dayton, market trend shows an increasing trend as buyers flock to the city because of good economic outlook. For a state that is considered to have one of the highest foreclosures rate, the market condition is not that bad.

Sellers, on the other hand, are hoping that the large inventory of bank foreclosures in Ohio will not affect their asking prices. To date, they still enjoy up to 90 percent of their asking prices. Although average home prices have decreased by as much as 10 percent compared to last year, properties only stay in the market for as long as 90 days.

In addition to these, lenders are being encouraged by state officials to work with homeowners who are having trouble keeping up with their mortgage payments. The same officials are also working very hard to make sure that the current foreclosures dilemma will not be experienced again in the future, by passing borrower-friendly bills and stricter underwriting guidelines for lenders.

If you are looking for more information about these homes, bank foreclosures expert like Foreclosure Deals can provide professional assistance to both buyers and sellers.

During the first quarter of the current year, Ohio was in the 8^th place among the states with highest foreclosures rate with a recorded 24,204 homes in some stage of foreclosure. This April, the state was ranked seventh with 1 foreclosure for every 640 homes. Real estate investors as well as first time buyers have showed much interest in these Ohio foreclosure homes, primarily due to their very low prices.

The perfect time to purchase Ohio foreclosures is right now. With their below average prices as well as large inventory, many sellers are offering buyers with greater discounts. These sellers are willing to slash their selling prices in order to reduce holding costs that include maintenance and insurance fees.

When searching for Ohio foreclosures, the key is having the right search tools. One of the most reliable tools is foreclosure listings from reputable real estate brokers like Foreclosure Deals. You can rely on these listings to provide you with complete and updated information on the most amazing foreclosure properties sold all over the nation.

On the other hand, you will have to conduct some research before making any choice. Although there are thousands of Ohio foreclosures, it would be smart to learn about the property’s location, the prevailing housing prices and over all real estate market condition. All these are important factors if you are purchasing real properties for investment.

Seasoned real estate investors have also made a habit of having these Ohio foreclosures checked or inspected professionally to look for structural damages. Major repairs can cost you considerably when undiscovered earlier. Sellers can even shoulder such costs or deduct it from the selling price. Also important is checking the property’s title for secondary liens or claims which could be very inconvenient in the long term.