Foreclosure Task Force: Ohio Sets Framework in Place to Help People Against Foreclosures

September 18th, 2007

Gov. Ted Strickland in Ohio believes that a Task Force designed by him, specifically formed to work against the rising foreclosure rates, will definitely succeed in helping distressed homeowners.

The task force put forward their list of recommendations in front of the governor. After his evaluation, the Ohio legislature will give back its feedback regarding the implementation of the given proposal. Though there is a mixed opinion on these recommendations, Strickland acknowledged the efforts taken by the task force member’s in scrutinizing the foreclosure issue very closely and presenting their view in front of the decision makers.

One of the suggested measures to prevent foreclosure is that instead of foreclosing the default properties, mortgage companies should work towards modifying the loan agreements.

The Ohio Bankers League (OBL) to some extent, have given their approval to the recommendations. Michael Van Bushrisk, CEO and president of OBL deems that the state cannot force lenders to redraft their existing loans agreement. If the state did so, then there is a possibility that these mortgage companies could well have to face bankruptcy. He also added that his league is not against the task force; however, the recommendations can be interpreted in such a manner that could easily avert homeowners from availing refinancing schemes, or even get another mortgage.

The Ohio Home Rescue Program mentioned in the report, will provide financial support in the form of hard cash to homeowners who can lose their house to foreclosure. The report has also asked county auditors to evaluate the home value of the owners impeccably so that loan agreements formed do not exaggerated values of these homes.

The foreclosure crisis continues to hamper the dreams of thousands of homeowners in Ohio. Subprime loans and adjustable-rate-mortgages, extended to homeowners with poor credit profiles, always become problematic later on. Therefore, when the interest rates re-set to higher levels, repaying the mortgage becomes difficult.

In Ohio, the situation is already out of control. Experts estimated that more than 2 million adjustable-rate-mortgage will re-set by the end of the year 2008. Foreclosure filings Delaware County of Ohio are growing faster in than any other county. As per the reports of the Mortgage Bankers Association, Ohio stands first in the percentage of loans taken in the whole country.

Kimberly A. Zurz, the taskforce’s chairperson and director of the “Ohio Department of Commerce”, cited the work done by the task force as a “framework to keep people in their homes”.