Alarming rate of foreclosures grab political limelight in Cleveland

Cleveland is no more a place where a person can have peaceful possession of their dream home. Instead, it has become a home for homes with signs that say “resale” or “foreclosed property”. It is among the top list of
foreclosures. People here took sub-prime loans to buy their houses and now the same loan is forcing them out of their homes.

The number of foreclosures is increasing drastically every year in Cleveland and Cuyahoga. In 1995, the count was 3410, whereas in 2006, the count went up to 7010. It has gone up still further this year. Within seven months, it has become a whopping 13610 houses! Countrywide, the prevailing foreclosure rate is one for every 129 houses. In Cleveland, at least 30 percent of the sub-prime loans have become bad deals. Those who are in either a poor credit bracket or those who cannot get loans avail of sub-prime loans. However, an increase in the interest rates increases the monthly installment making it more difficult for the property owners to pay off the money borrowed.

County treasurer estimates that the count will exceed $1 trillion. This is far more than the loss of $300 billion that the county faced last year. Its implications on the financial institutions and subsequently on the New York Stock Exchange are very clear. Wall Street is having a tough time. Oversees too, the credit crisis is affecting economies.

The non-profit organizations are taking a stand against the foreclosure crisis .The non-profit group ESOP – “Empowering and Strengthening Ohio’s People” are helping those who have fallen into the prey of predatory loans. With their efforts, few people have managed to get out of this net. Many people from Cleveland, Euclid, Parma and many other places are
approaching ESOP to help them out with this problem. People from every stratum – homemakers, workers, nurses – approach them. Until now, they have helped more than 709 homeowners.

The issue has attracted political attention too. Contenders of the 2008 presidential run are making serious efforts to save people from the foreclosure crisis. Congressman Dennis Kucinich, standing for greater Cleveland’s West Side and Democrat John Edward, are raising their voices for the improvement of the life of people under the trap of foreclosure. They are visiting various affected areas regularly. Mr. Edward is ready to extend help personally or in collaboration with charity trusts.

Residents of Cleveland were asking for support since 2001 but it is only now, when the issue has been noticed globally, that people have started taking note of their plight.

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