Cuyahoga County is Launching the Biggest Fight Against Foreclosure

December 23rd, 2008 | Tags: Foreclosure

Cuyahoga County is the largest in Ohio State. It is all set to launch one of the biggest fights against foreclosures. By it the government will come to own foreclosed and vacant units, fix them and sell them to private owners. This was decided by an overwhelming number of votes (88/6) in the Ohio House. A locally financed land bank has been created to improve the health of the locality dotted with derelict foreclosed vacant houses that acts as magnets for crime and disease. The bill will now go to the Senate where is it expected to sail through with ease.

Many other counties with large urban regions like Lucas, Hamilton and Montgomery will be closely monitoring the happenings of Cuyahoga land bank during the forthcoming months so as to emulate it later on. They are hoping this will be an effective tool in battling the foreclosure menace.

The raging foreclosure crisis is damaging many urban areas – notably in Cleveland. According to the findings of U.S. Senate, Cleveland is the second most impecunious jumbo city in the country last year. The idle properties lying empty become dens for thieves, drug pushers and prostitutes. Anything valuable like copper fittings are yanked off. The sorry condition of the decaying houses depresses property value in the entire area. Everyone finds it difficult to find a buyer. Entire blocks are blighted.

The land bank will have the power to take off these units by foreclosing on them because of unrealized taxes. It will counter attack the growing practice of speculators making bulk purchases of foreclosed houses. They are mischief-makers trying to sell these off to gullible buyers without making any improvements.

Commenting on the land bank initiative Rep. Matt Dolan (Republican) said, “It’s not a solution to the economic crisis or the foreclosure crisis. It’s a tool that will help.”

Genesee County in Michigan is keen to launch a programme based along similar lines. However tax policies and other rules of the government are different from that of Ohio. Tax dues will make up the bulk of the funding for these land banks.

The man behind the move is Cuyahoga County treasurer, Jim Rokakis. He has been persistently promoting the idea of the land bank and lobbying with local lawmakers to make the plan a success. He has managed to overcome the initial criticism and skepticism and replace it with enthusiasm.