Foreclosure Articles and News

Panel Report On Ohio Foreclosure Urges Lenders To Be Accommodating

A task force was set up to study the foreclosure crisis in Ohio. Mortgage lenders were asked to be more adjustable in their approach while rescheduling the loans of delinquent house owners.

The money given by the state should be utilized to give a boost to counseling services. The Ohio Prevention Task Force made 27 recommendations on Monday. The ball is now in the court of the government – its representatives and lawmakers. With the end of the summer holidays, these dignitaries would be returning to the capital on Tuesday.

Governor Ted Strickland’s spokesperson said that the governor would quickly scan the report. The suggestions are viable and fitting for the current problem. The growing tide has to be stemmed. It was Strickland himself who initiated the formation of this task force in March, including in it government personnel, financial wizards and representatives from non-profit organizations.

After Florida and California, Ohio has the largest number of foreclosures in the country. During the first half of the year, 44,594 foreclosed houses were listed. The state’s average has been higher than the national rate for every quarter since the closing months of 1998. It is anticipated that $14 million in the sub-prime loan category will be reset within the following five years.

The panel has given primary importance to a campaign aimed to educate the public. Borrowers were told to contact the lenders directly without delay and negotiate about changing the mortgage rate when faced with difficulties about meeting revised demands of lenders. The report also opined that the borrowers should be allowed six months respite from a rise in interest rates.

The sub-prime fiasco has not remained contained within its boundaries but has spilled over to infect and affect the entire economy of the country. As such, strong appeals have been made by the task force to the lenders to change their rates from the adjustable to the fixed group and to do away with late fines and attorney fees.

About $2 million of state funds and a total of $10 million should be allotted for house counseling purposes. These experts can guide the traumatized borrowers to plan their budget and find an exit route.

A small but loud group of the banker’s fraternity criticized the findings for not drawing a line between prime and sub-prime lenders while putting the pressure on.

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