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.
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