Ohio joins States with Highest Foreclosure Rates

A report from the Associated Press stated that Ohio currently has one of the highest foreclosure rates in the United States. If foreclosure rate is an indication of how a state’s economy is thriving, then Ohio is a good example. Faced with a high unemployment and interest rates, Ohio homeowners are having a tough time coping with their mortgage obligations especially borrowers who opted for adjustable rate mortgages. Aside from this, they still have to overcome high credit card debt rates. Predatory lending is the primary cause of the current housing situation. Many lenders have granted loans to people with bad credit history and who can not really afford a property in the first place. Some lenders even raised property appraisal value, which means that buyers are paying more for what their homes are really worth. According to a research firm, around 7,349 properties in Ohio entered some stage of foreclosure in December 2006. Compared to December 2005, foreclosure rates climbed by 8.6%. That is roughly 1 out of 651 homes! Ohio government officials are planning to control the situation by passing new laws in 2007 that are aimed to tighten subprime loan regulations and allow buyers to sue lenders doing fraudulent practices. Many lenders are also slashing down prices to decrease the number of REO properties. Conducting public auctions and entering into listings contracts with brokers such as Foreclosure Deals are just some of the options being explored by these lenders to sell their foreclosures. With the growing inventory of Ohio bank foreclosures, many real estate investors consider this a welcome opportunity. Now is the best time to purchase Ohio bank foreclosures since list prices are very competitive. Also important are the new regulatory laws soon to be passed that can really help liven up the housing market and create a healthy investment climate.