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Both from the 2/11/07 Lorain Morning Journal:

 

 

Foreclosures on the rise

SCOT ALLYN, Morning Journal Writer

02/11/2007

 

LORAIN -- When Nancy Malone's grandmother died in 2002, the family wanted to keep her house, and Nancy and her husband Jim Malone (not their real names) were able to move in.

 

They couldn't know it at the time, but the happy prospect of owning a home would lead the Malones to join the growing ranks of borrowers who get in over their heads.

 

They looked forward to leaving the house they had been renting in Sheffield Township, since the grandmother's home was larger, and the Malones would be able to have a dog there. The storage space appealed to Nancy, and the couple would have a garage for the first time.

 

...

 

More at:

http://www.morningjournal.com/site/news.cfm?newsid=17838311&BRD=1699&PAG=461&dept_id=46371&rfi=6


Ohio going after predatory lenders

SCOT ALLYN, Morning Journal Writer

02/11/2007

 

COLUMBUS -- As more and more home owners across the state lose their homes to foreclosure, Ohio's new attorney general wants to put predatory lenders behind bars.

 

Marc Dann, elected to the state's top law enforcement post in November, said he is eager to enforce the Ohio Homebuyers' Protection Act. The law was passed last year to prevent mortgage brokers or loan officers from using coercive or misleading tactics to prey on borrowers. It went into effect Jan. 1.

 

''We look forward to having the public call us, if they think they've been victimized,'' said Dann. Since the law is so new, no cases have been started yet.

 

...

 

More at:

http://www.morningjournal.com/site/news.cfm?newsid=17838297&BRD=1699&PAG=461&dept_id=46371&rfi=6

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From the 2/13/07 DDN:

 

 

Ohio 7th, Dayton area 51st for January foreclosures

By Lisa Bernard

Staff Writer

Tuesday, February 13, 2007

 

DAYTON — Ohio ranked seventh in the nation for foreclosure filings during the month of January, according to data released by California-based RealtyTrac.

 

Last month the Buckeye state saw 8,504 foreclosure filings, a figure that represents a 15.7 percent increase over December filings and a 2.8 percent increase over the same period in 2006, RealtyTrac reported.

 

The Dayton region, which included data collected from Greene, Miami, Montgomery and Prebble counties, was ranked 51st among metropolitan statistical areas with 605 foreclosures in January.

 

...

 

More at:

http://www.daytondailynews.com/n/content/oh/story/news/business/2007/02/13/DDN021307foreclosures.html

Link contains photo. From the 2/20/07 Wilmington News Journal:

 

 

Treasurer talks foreclosures

Numbers high for Clinton County

Gary Huffenberger

Staff Writer

 

New state Treasurer Richard Cordray, who was keynote speaker for a Clinton County Democratic Party fund-raiser on Monday, takes an avid interest in the problem of home foreclosure in Ohio, and as Franklin County treasurer he called a foreclosure summit in December 2005.

 

Clinton County has not escaped the statewide problem of mortgage default and foreclosure, as shown by the 216 foreclosure filings during 2005 in the county, 241 the year before and 217 the year before that.

 

Cordray said there are three main factors for the upsurge in foreclosures around Ohio.

 

...

 

More at:

http://www.wnewsj.com/main.asp?SectionID=49&SubSectionID=156&ArticleID=153145

 

From the 2/22/07 PD:

 

 

Foreclosures high under any ranking

Thursday, February 22, 2007

Olivera Perkins

Plain Dealer Reporter

 

Ohio had the eighth highest foreclosure rate in the country, according to a recent report by a real estate Web site.

 

Greater Cleveland ranked 14th among the 100 largest American metropolitan areas, according to RealtyTrac Inc.

 

Does this mean that Ohio no longer has the highest foreclosure rate in the country?

 

...

 

More at:

http://www.cleveland.com/news/plaindealer/index.ssf?/base/cuyahoga/1172136736156970.xml&coll=2

From the 2/25/07 DDN:

 

 

Foreclosed properties mean opportunities for financial institutions, auctioneers, potential buyers

An auction firm plans to sell area properties at sale.

By Lisa Bernard

Staff Writer

Sunday, February 25, 2007

 

DAYTON — More than 20 residential properties in the region are slated for the auction block in the coming weeks, as the nation's largest auction firm of foreclosed properties makes it's way to Dayton.

 

Dallas-headquartered Hudson & Marshall's is planning an Ohio tour in early March, in which the company is slated to auction off 186 properties on behalf of several national lenders.

 

The firm will be in Fairborn on March 6 to auction off local properties valued between $5,000 and $250,0000 located in Middletown, Dayton, Springboro and Fairborn.

 

...

 

More at:

http://www.daytondailynews.com/n/content/oh/story/news/business/2007/02/24/ddn022507foreclosureauctions.html

 

From the 2/27/07 PD:

 

 

Attorney general's staff to focus on predatory lending

Tuesday, February 27, 2007

Reginald Fields

Plain Dealer Bureau

 

Columbus - The state attorney general's office will hire three attorneys and three investigators dedicated solely to cracking down on unscrupulous housing lenders.

 

The State Controlling Board on Monday unanimously approved the agency's $500,000 request for the new hires, including a secretarial position and equipment, to formally launch a predatory-lending task force.

 

The task force, which already exists in a skeletal form with about five lawyers in the attorney general's Cleveland office, will become a recognized unit of Attorney General Marc Dann's office and be headquartered in Cleveland.

 

...

 

More at:

http://www.cleveland.com/news/plaindealer/index.ssf?/base/news/117256883976500.xml&coll=2

 

From the 2/28/07 DDN:

 

 

Lovelace backs laws to put halt to predatory lending

By Joanne Huist Smith

Staff Writer

Wednesday, February 28, 2007

 

DAYTON — — City Commissioner Dean Lovelace believes that state regulation of predatory mortgage lending isn't good enough, the practice must be stopped.

 

He's calling on Dayton residents to come together and fight for the right to decide "for ourselves" what is best for the people living in this community and to pass laws to protect homeowners.

 

As many as 50 people came out to the Dayton Cultural and RTA Center, 40 Sprague St., for a forum Lovelace sponsored Tuesday night to address actions by Ohio legislators to prevent cities from passing local anti-predatory lending laws.

 

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More at:

http://www.daytondailynews.com/n/content/oh/story/news/local/2007/02/28/ddn022807predatory.html

 

From the 3/4/07 Toledo Blade:

 

 

* PHOTO: Sam Coles prepares the kitchen for remodeling at a foreclosed house bought by One Way Properties near Ottawa Park. ( THE BLADE/HERRAL LONG )

* PHOTO: A house near Ottawa Park is being rehabbed by Mr. Dewood. ( THE BLADE/HERRAL LONG )

* PHOTO: Rod Culler, a Toledo real estate agent specializing in foreclosed properties, urges getting professional inspections. ( THE BLADE/HERRAL LONG )

 

Foreclosures open doors for area investors

By GARY T. PAKULSKI

BLADE BUSINESS WRITER

 

NO CARPET. No kitchen. No problem.

 

Those sort of defects don't scare away Toledo real estate investor Matt Dewood when he finds a house in a popular area where he knows he can turn a nice profit by giving the place a facelift.

 

With foreclosures soaring across northwest Ohio and southeast Michigan, the 30-year-old investor who specializes in "flipping" houses has plenty of prospects - and not just ramshackle places in older areas of Toledo.

 

...

 

More at:

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20070304/BUSINESS05/703030334/-1/RSS13

From the AP, 3/8/07:

 

 

State wants foreclosure answers

THE ASSOCIATED PRESS

 

COLUMBUS – A special task force has been formed to look at ways to cut down on home foreclosures in Ohio, which has among the highest rates in the nation.

 

The Foreclosure Prevention Task Force will include representatives from state and local government, lenders and nonprofit consumer groups, Gov. Ted Strickland said in a news release Wednesday. It will be chaired by Kim Zurz, director of the Ohio Department of Commerce.

 

About 3.3 percent of Ohio homes and small apartment buildings were in foreclosure in October through December, the highest rate of any state and three times the national rate of 1.1 percent, said a study by the Mortgage Bankers Association. Ohio’s rate has been higher than the national average for every quarter since the end of 1998.

 

...

 

More at:

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070308/NEWS01/303080012/-1/rss

From the 3/14/07 Youngstown Vindicator:

 

 

Trumbull Co. tackles predatory lending

A local Realtor says he's watched predatory lending at work for years.

By ED RUNYAN

VINDICATOR TRUMBULL STAFF

 

WARREN — Trumbull County Prosecutor Dennis Watkins has begun a collaboration with the Ohio attorney general's office to attack predatory lending problems in the county.

 

"It's a problem in this area. It deserves investigation and prosecution in some instances," Watkins said.

 

Ed Kraus, co-managing attorney in the attorney general's Cleveland office, said he has begun to contact all of the county prosecutors in his region. He's offering the office's assistance in investigating and prosecuting the predatory lending aspects of the Ohio Consumer Sales Practices Act that went into effect Jan. 1.

 

...

 

More at:

http://www.vindy.com/content/local_regional/345211594443859.php

From the 3/15/07 PD:

 

 

Dann slams door on subprime lender

Thursday, March 15, 2007

Patrick O'Donnell

Plain Dealer Reporter

 

Ohio Attorney General Marc Dann has joined a string of state officials around the country blocking the troubled New Century Financial Corp. from operating in their states.

 

At Dann's request, the Cuyahoga County Common Pleas Court ordered the company on Wednesday to halt business for 15 days. Dann said he will seek a longer-term ban by the end of that period.

 

The order, from Judge Eileen Gallagher, stops New Century from starting any new loans, collecting fees and pursuing any new or existing foreclosures. New Century has issued loans through independent brokers and through Home123 and New Century Mortgage.

 

...

 

More at:

http://www.cleveland.com/news/plaindealer/index.ssf?/base/news/117394906698200.xml&coll=2

 

From the 3/23/07 News-Herald:

 

 

Geauga seeks to foreclose

Officials meet to discuss foreclosure process, learn why foreclosures are up

By: Diane Ryder

[email protected]

03/23/2007

 

Eighteen Geauga County officials held a brainstorming session Thursday afternoon to discuss

the burgeoning property foreclosures in the county, and to plan strategies to combat what they consider a serious economic problem.

 

Commissioners sponsored the meeting with representatives from departments that deal with foreclosures, including the courts, treasurer, auditor, prosecutor, job and family services, the sheriff and community development.

 

"It seems to be a systemic problem, understanding debt," Commissioner Mary Samide said.

 

...

 

More at:

http://www.news-herald.com/site/news.cfm?newsid=18117656&BRD=1698&PAG=461&dept_id=21849&rfi=6

 

Link contains photos. From the 3/25/07 Toledo Blade:

 

 

REAL ESTATE

For some buyers, subprime mortgage is only route to home

By GARY T. PAKULSKI

BLADE BUSINESS WRITER

 

FORCED TO LEAVE his job as a Christian pastor in Pennsylvania because of illness, Jeff Beatty moved with his wife and four teenage children to a $300-a-month mountain home he unapologetically calls a "dump."

 

"We had to clean up 50 pounds of rat [droppings] before we could move in," the 45-year-old West Toledo resident recalled. "The only heat was a wood stove."

 

At a time when airwaves and news columns are filled with complaints from people who feel they've been ripped off by subprime lenders, Mr. Beatty is a satisfied customer.

 

...

 

More at:

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20070325/BUSINESS05/703240340/-1/RSS04

 

From the 3/27/07 Blade:

 

 

'06 STATEWIDE STUDY

Toledo region hit hard by foreclosures

By JON CHAVEZ

BLADE BUSINESS WRITER

 

Defiance County had the biggest jump in home foreclosures last year from the year before, and Lucas County was the only northwest county with fewer people for every filing than the statewide average.

 

Ten area counties had larger foreclosure growth in the past 10 years than the statewide average, according to a report released yesterday by Policy Matters Ohio, a Cleveland think tank.

 

Ohio and the Toledo region have been socked lately by numbers of people whose houses are in some stage of being seized because the mortgages were not paid on time.

 

...

 

More at:

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20070327/BUSINESS05/70327040/-1/RSS13

 

From the 3/29/07 Enquirer:

 

 

Lender halts Ohio foreclosures

BY JON NEWBERRY | [email protected]

 

New Century Financial Corp. has agreed to halt all foreclosures in Ohio while state regulators and law enforcement officials determine if any of the loans violated predatory lending laws, Ohio Attorney General Marc Dann’s office said.

 

“New Century has taken a good faith step by agreeing to let us review its documents before any further foreclosures are acted upon in Ohio,” Dann said in a statement. “I want to make sure consumers are in a mortgage loan they can afford and not one agreed to under false pretenses.”

 

Each foreclosure will be examined for evidence of predatory lending practices as part of the review process. If bad business practices are discovered, New Century will be obligated to postpone action on that loan until the company makes corrective measures that are approved by the state, the attorney general’s office said. One option might be reworking the original loan to make it affordable for the consumer, it said.

 

...

 

More at:

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070329/BIZ01/303290042/-1/rss

 

Both from the 3/30/07 DDN:

 

 

Foreclosures have moved to suburbs in Ohio

Report: 73% of subprime loans made in middle, upper income areas in '05.

By William Hershey

Staff Writer

Friday, March 30, 2007

 

COLUMBUS — Ohio's home foreclosure crisis, already a near epidemic in some urban neighborhoods, has moved to the suburbs.

 

A new report released Thursday showed that 73 percent of the subprime loans that have ignited the crisis were made in middle and upper income areas — often suburbs — in 2005, while just 27 percent were made in low and moderate income areas.

 

The trend applied in all area counties. Warren County had the highest percentage in the area — 87 percent in middle and upper income areas.

 

...

 

More at:

http://www.daytondailynews.com/n/content/oh/story/news/local/2007/03/29/DDN033007housing.html


Adjustable rate mortgages part of foreclosure crisis

'Teaser rates' start out low then increase dramatically. 200,000 Ohio families could be affected in 2007-08.

By William Hershey

Staff Writer

Friday, March 30, 2007

 

COLUMBUS — They're called "teaser rates" and they could make Ohio's mortgage foreclosure crisis even worse in coming years.

 

The loans are for adjustable rate mortgages (ARMs) with low, fixed interest rates for the first two or three years. After that initial period, the rates increase, as often as every six months, so that monthly mortgage payments grow dramatically, according to a report released Thursday by the Coalition for Homelessness and Housing in Ohio.

 

According to the report, $14 billion in ARM "teaser rate" loans will be reset in Ohio this year and in 2008, likely creating an increase in foreclosures and affecting at least 200,000 families.

 

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More at:

http://www.daytondailynews.com/n/content/oh/story/news/local/2007/03/30/ddn033007housinginside.html

 

From Business First of Columbus, 4/2/07:

 

 

Ohio foreclosure outlook still dicey

Business First of Columbus - March 30, 2007

by Adrian Burns

Business First

 

After three years of steady increases, foreclosures in Ohio took a big jump in 2006, helping cement the state's reputation as a hotbed for mortgage failures.

 

A new report from Policy Matters Ohio, a public policy think tank in Columbus, found foreclosure filings in Ohio jumped nearly 24 percent last year to 79,072.

 

The surge reflected the fallout from a housing market that experienced a full year of declining sales as rising mortgage interest rates slowed demand. But the rising rates also meant higher monthly payments for growing legions of Ohioans holding adjustable-rate mortgages - loans that carried low entry rates that are now on the rise and costing borrowers more.

 

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More at:

http://columbus.bizjournals.com/columbus/stories/2007/04/02/story1.html

 

From the 4/4/07 Times-Reporter:

 

 

Cold, hard truth

Foreclosures show no signs of slowing down

By ZACH LINT, T-R Staff Writer

 

There are three constants in Tuscarawas County’s foreclosure numbers – Thursday sheriff’s sales, attorney Steven A. Anderson of New Philadelphia and a weekly increase in the number of foreclosures.

 

“It used to be if I had two or three sales a week that was significant,” Anderson said, noting the only sale he’s missed in the last year was during a week when he was on vacation. “This year, I’ve already had nine properties to buy back at one sheriff’s sale. In a three-week span I’ve had nine, eight and six, so that’s saying something.”

 

If anything, the county’s foreclosure market seems to be getting worse.

 

...

 

More at:

http://www.timesreporter.com/index.php?ID=66199&r=0

From the 4/5/07 Marysville Journal-Tribune:

 

 

Living in fear of foreclosure

Many in Union County, and across Ohio, are trapped in a financial pitfall

By EMILY MASTERS

 

Home foreclosures have steadily been on the rise in Union County, as in much of the state.

 

Ohio leads the nation in foreclosures, and according to a study by the Mortgage Bankers Association, Ohio has ranked No. 1 since 2004.

 

The Friday, March 23 edition of the Marysville Journal-Tribune listed 36 legal notices for "Sheriff's Sale of Real Estate." Eight years ago, Union County might have had 10 listings in a year, according to the sheriff's office. Now, the county averages 15 to 40 notices each month.

 

...

 

More at:

http://www.marysvillejt.com/web/index.php

From the 4/10/07 Enquirer:

 

 

Anti-foreclosure group meets

BY JON CRAIG | [email protected]

 

COLUMBUS – A state task force hopes to recommend solutions to Ohio’s home foreclosure crisis in two months.

 

“I would love to have a plan by the end of June,’’ state Commerce Director Kimberly Zurz said. “We will know what kind of options we have.”

 

During its first meeting today, the 25-member task force created by Gov. Ted Strickland identified problems to be addressed by subcommittees comprised of lenders, legislators and public advocacy groups. They agreed borrowers and banks need to be better educated to avoid foreclosure and that new laws are needed to rein in problem lenders.

 

...

 

More at:

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070410/BIZ01/304100050/1076/rss01


From the 4/10/07 Lorain Morning Journal:

 

 

Foreclosure rates on the rise in first quarter '07

ALEX M. PARKER, Morning Journal Writer

04/10/2007

 

ELYRIA -- So far this year, foreclosures are up in Lorain County -- and not just in areas such as Lorain and Elyria.

 

Avon, Avon Lake, North Ridgeville and Oberlin all saw sharp increases in the number of home foreclosures during the first quarter of 2007, according to Lorain County Clerk of Courts Ron Nabakowski.

 

In the first quarter of 2006, there were 448 foreclosures processed in the county. In the first quarter of 2007, there were 627 foreclosures -- an increase of 40 percent.

 

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More at:

http://www.morningjournal.com/site/news.cfm?newsid=18188414&BRD=1699&PAG=461&dept_id=46371&rfi=6

 

Link contains a photo. From the 4/15/07 Warren Tribune Chronicle:

 

 

Foreclosure fears

By RAYMOND L. SMITH Tribune Chronicle

 

WARREN — JoAnne Montagliani has survived the loss of many of the things she has held most dear over the years.

 

Her husband. Her health, including a bout with cancer, injuries from a serious automobile accident and the replacement of her knees. And, more recently, the loss of three cats.

 

After nearly 40 years in her Clermont Avenue home, Montagliani faces another tough battle: prevent foreclosure of the house she’d already paid off before loan enticements began rolling in.

 

...

 

More at:

http://tribune-chronicle.com/articles.asp?articleID=16912

 

From the 4/16/07 Cincinnati Business Courier:

 

 

Loan woes take local toll

Ohio tops nation in 4Q foreclosures

Cincinnati Business Courier - April 13, 2007

by Steve Watkins

Staff Reporter

 

Problems with the subprime lending market are combining with weakness in the housing market to make life difficult not just for borrowers but also for lenders. And the problem is hitting home locally.

 

The numbers tell the tale. Ohio foreclosure filings jumped 24 percent last year to 79,000, according to nonprofit research firm Policy Matters Ohio. The increase of 15,000 marked the largest gain in recent history.

 

Ohio and Indiana had the two highest foreclosure rates for home mortgages in the fourth quarter, according to the Mortgage Bankers Association. Ohio's nation-leading 3.4 percent foreclosure rate soared above the national average of 1.2 percent. Meanwhile, 4.5 percent of subprime loans nationwide were in foreclosure.

 

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More at:

http://cincinnati.bizjournals.com/cincinnati/stories/2007/04/16/story1.html

 

From the 4/17/07 Dispatch:

 

 

* GRAPHIC: Troubled loans

 

Chase foreclosures run high

Bank acknowledges numbers but says data 'misleading'

Tuesday, April 17, 2007

Denise Trowbridge

THE COLUMBUS DISPATCH

 

JPMorgan Chase is drawing attention for the number of its mortgage loans that end up in foreclosure.

 

Chase mortgages accounted for a larger share of foreclosures in Franklin County than those made by other local banks, according to the Service Employees International Union.

 

The union analyzed court documents and federal mortgage-lending data for the four largest banks by market share in Franklin County.

 

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More at:

http://www.dispatch.com/dispatch/contentbe/dispatch/2007/04/17/20070417-C1-02.html

 

From Cox News Service, 4/18/07:

 

 

Lenders will try to tackle mortgage crisis

In congressional meeting, Ohio lawmakers call spike in foreclosures a cloud that is dragging communities down.

By Marilyn Geewax

Cox News Service

Wednesday, April 18, 2007

 

WASHINGTON — After an Ohio lawmaker warned Congress on Tuesday about the "dark and foreboding cloud" hanging over the economy as home foreclosures increase, lending giants Fannie Mae and Freddie Mac said they are creating new mortgage options to help borrowers avoid losing their homes.

 

In addition, Federal Deposit Insurance Corp. Chairman Sheila Bair urged lenders to help beleaguered borrowers restructure their mortgages, which "would bring them back to good standing, allow them to repair their credit histories, and dampen the impact that foreclosures may have on the broader housing market."

 

The Federal Reserve Board seconded her suggestion, urging lenders to develop "prudent workout arrangements" to help homeowners avert foreclosures.

 

...

 

More at:

http://www.daytondailynews.com/n/content/oh/story/news/business/2007/04/17/ddn041807mortgage.html

 

No link for article.

Monday, April 23, 2007

Ohio tries to fend off foreclosures on home loans

By Pamela M. Prah, Stateline.org Staff Writer  

 

For Joel Ghitman, director of the Ohio Housing Finance Agency, the phones have barely stopped ringing in the past three weeks.

 

The number of calls doubled to 200 a day after the state launched a first-in-the-nation program April 2 to help homeowners whose once-affordable mortgage payments are now busting family bank accounts.

 

Ohio led the country with the highest overall foreclosures rates in the last three months of 2006, followed by Indiana and Michigan, according to the Mortgage Bankers Association.

 

...

 

More at:

http://www.stateline.org/live/printable/story?contentId=201186

 

From the 4/21/07 PD:

 

 

Group lacks Ohio license to refinance predatory loans

Saturday, April 21, 2007

Sheryl Harris

Plain Dealer Consumer Affairs Reporter

 

The Neighborhood Assistance Corp. of America says it is offering homeowners nationwide up to $1 billion to help them refinance predatory loans, but the group is not in a position to offer loans to Ohioans.

 

Although the group is having a "Call to Action" in Cleveland today, it isn't registered as a mortgage broker with the state, so it cannot process applications.

 

On Friday, Department of Commerce spokesman Dennis Ginty said that the Boston-based nonprofit has "assured the division they won't take applications or close loans until they have been licensed or registered."

 

...

 

More at:

http://www.cleveland.com/business/plaindealer/index.ssf?/base/business-1/1177144386204161.xml&coll=2

 

From the 4/23/07 Dayton Business Journal:

 

 

Expert Advice

State looks to stem the tide of foreclosures

Dayton Business Journal - April 20, 2007

by Kathleen Brinkman, Richard Chema, and Craig Hoffman

 

Ohio Gov. Ted Strickland has formed a task force to deal with the state's rapidly rising number of foreclosures on subprime home mortgage loans, many owed by lower-income Ohioans. The alarming increase in foreclosures in Ohio is part of what has been described as a national crisis.

 

One remedy being considered is the equivalent of a moratorium on certain foreclosures. Ohio Attorney General Marc Dann already has reached an agreement with subprime lender New Century Financial Corp. establishing a procedure for protecting residential mortgage loan borrowers. Under the agreement, New Century will not solicit new residential mortgage loans or accept origination fees related to them. Also, New Century may foreclose only on loans that are 180 days or more in arrears and only with approval of the attorney general.

 

In addition, Dann has obtained at least $500,000 to fund the task force, which will pursue those who engage in abusive lending practices.

 

...

 

More at:

http://dayton.bizjournals.com/dayton/stories/2007/04/23/focus4.html

 

From the 4/24/07 PD:

 

 

Lenders accused of preying on blacks

Group says borrowers taken advantage of

Tuesday, April 24, 2007

Susan Vinella

Plain Dealer Reporter

 

Three companies violated civil-rights laws by targeting predominantly black neighborhoods in Cleveland for home loans that were likely to result in foreclosure, according to complaints made by a housing advocacy group.

 

The Housing Advocates Inc. filed the complaints Monday with the city of Cleveland and the U.S. Department of Housing and Urban Development, accusing Argent Mortgage Co., Wells Fargo Bank and First National Mortgage Co. of unfair lending practices.

 

The agency filed on behalf of 77-year-old Elizabeth Redrick and other black residents whose homes are in foreclosure. Redrick lives on East 147th Street in ZIP code 44110, where the housing agency reported that the population is nearly 74 percent black.

 

...

 

More at:

http://www.cleveland.com/news/plaindealer/index.ssf?/base/cuyahoga/117740394096600.xml&coll=2

 

From the 4/26/07 Blade:

 

 

HOME OWNERSHIP

Toledo 29th in big cities in rates of foreclosure

2nd study finds shift in delinquency causes

FROM BLADE STAFF AND WIRE SERVICES

 

Ohio and Michigan remain among the states with the highest foreclosure filing rates for the first quarter, and Toledo ranked 29th out of the 100 largest cities, a new study shows.

 

Meanwhile, a separate study found that fewer homeowners blamed job losses and marital strife for late mortgage payments in 2006. More people cited excessive debt and sick family members as the cause.

 

In 2006, Ohio had the highest home loan delinquency rate in the country, and Michigan was No. 3. Layoffs and plant closures were blamed by experts for some of the problem, along with the higher cost subprime loans.

 

...

 

More at:

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20070426/BUSINESS06/704260410/-1/RSS04

 

From the 4/29/07 Springfield News-Sun:

 

 

Home foreclosures affecting every part of local economy

Predatory lending and loss of income are the main reasons so many houses end up on auction block.

By Samantha Sommer

Sunday, April 29, 2007

 

Homes remain the cornerstone of investment for families.

 

They also prop up the economy, said Tina Koumoutsos, executive director of Neighborhood Housing Partnership.

 

So foreclosures can affect almost every level of a community— families, businesses, lenders, government officials and neighborhoods.

 

...

 

More at:

http://www.springfieldnewssun.com/news/content/oh/story/news/local/2007/04/28/sns042907foreclosure.html


From the 4/29/07 Lima News:

 

 

Foreclosures skyrocket, tripling in Allen County

Bart Mills | [email protected] - 04.29.2007

 

CRIDERSVILLE — A stack of envelopes sits at the center of the kitchen table, spilling ominously from a smallish wicker basket. Judy Keller stares at them with a mix of dread and disbelief.

 

One by one, she slices the envelopes open, raining a shower of pink and yellow warning slips onto the table. With each new bill, she scratches another number on a yellow legal pad. When she’s finally done, the pad is more than a third full, and Keller’s eyes fill with tears. At the bottom of the list is a mortgage three months past due. If she doesn’t pay some of it soon, she fears her family will lose its house.

 

“It’s all too much. It’s more than we have,” Judy Keller said, gazing over the list of debt. “It just makes you want to cry. It’s hard to believe it really.”

 

...

 

More at:

http://www.limanews.com/story.php?IDnum=37903

 

From the 4/30/07 Springfield News-Sun:

 

 

Losing a home: ripple effect

Neighborhoods pay a price, too

Empty houses can create a sense of decline, hurt property values

By Samantha Sommer

Staff Writer

Monday, April 30, 2007

 

Two homes on Teresa Mills' block of Scott Street are empty. The homeowners lost them in foreclosures.

 

"The homes sit empty and of course then the windows get broken, and weeds and stuff start piling up," she said. "It makes a lot of difference when nobody is living in the houses."

 

Mills, president of the Selma Road Neighborhood Action Program, owns three houses on Scott Street in Springfield.

 

...

 

More at:

http://www.springfieldnewssun.com/news/content/oh/story/news/local/2007/04/30/sns043007foreclosureneighbor.html

 

From the 2/5/07 Springfield News-Sun:

 

 

Foreclosures of area homes are taking their toll on property values

By Elaine Morris Roberts

Staff Writer

Wednesday, May 02, 2007

 

The impact of foreclosures seeps far beyond the homeowner and is beginning to take its toll on local real estate and lending markets.

 

Foreclosures often sit vacant for an extended period, which can lower home prices in an entire neighborhood. Vacant homes can then attract undesirable activity, both human and animal, making the area less desirable and, subsequently harder to sell.

 

Sue Smedley, owner of Real Estate II, said one of the area's biggest problems is the "upside-down" house, meaning owners owe more than the house is worth. She said this happens with almost one out of two homes her agents are called to list. These homeowners have borrowed, often multiple times, against the equity in their homes and now cannot sell. The inability to sell may push an owner toward foreclosure.

 

...

 

More at:

http://www.springfieldnewssun.com/n/content/oh/story/news/local/2007/05/01/sns050207foreclosuretoll.html

 

From the 5/3/07 Dayton Business Journal:

 

 

Ohio courts report foreclosure filings climb 23 percent

Dayton Business Journal - 10:38 AM EDT Thursday, May 3, 2007

 

Ohio's foreclosure filings were up 23 percent and criminal filings up 7 percent in 2006 compared with 2005, according to the 2006 Ohio Courts Summary released Thursday by the Ohio Supreme Court.

 

...

 

More at:

http://www.bizjournals.com/dayton/stories/2007/04/30/daily22.html?from_rss=1

From the 5/4/07 Enquirer:

 

 

Brown proposes mortgage bill

$600 million fund would save homes

BY JAMES MCNAIR | [email protected]

 

Freshman U.S. Sen. Sherrod Brown of Ohio co-sponsored a bill Thursday to bring a welcome form of relief to people at risk of losing homes to foreclosure - money.

 

Brown joined two Democratic colleagues, Charles Schumer of New York and Robert Casey of Pennsylvania, in proposing $300 million in federal foreclosure relief and calling for mortgage reforms.

 

Their Borrower's Protection Act of 2007 comes as foreclosure rates skyrocket and hundreds of thousands of Americans lose their homes.

 

...

 

More at:

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070504/BIZ01/705040351/1076/rss01


From the 5/4/07 DDN:

 

 

* GRAPHIC: Foreclosure filings on the increase

 

WELCOME TO HARD TIMES IN THE HOUSING MARKET

Montgomery foreclosure filings skyrocket 25 percent in a year

Homelessness coalition leader says the problem will get worse because of subprime loans.

By Lisa A. Bernard

Staff Writer

Friday, May 04, 2007

 

DAYTON — More than 5,000 new foreclosures were filed in Montgomery County in 2006, a 25 percent jump over the previous year, according to data from the Supreme Court of Ohio.

 

Across the state, new foreclosure filings rose 23 percent in 2006 over 2005, or at twice the rate compared to the 8.4 percent increase from 2004 and 2005. Since 2001 foreclosure filings across the state have risen 89 percent, according to data.

 

"Our fear is that at this point this is sort of a telling sign of things to come for 2007 and 2008," said Bill Faith, executive director of the Coalition on Homlessness and Housing in Ohio.

 

...

 

More at:

http://www.daytondailynews.com/n/content/oh/story/news/business/2007/05/03/ddn050407foreclosures.html


From the 5/4/07 Springfield News-Sun:

 

 

Couple wins $67,000 in lawsuit against predatory lender

By Samantha Sommer

Staff Writer

Thursday, May 03, 2007

 

Alyce Comer fought the bank and won.

 

She and her husband won a class action predatory lending lawsuit, receiving a $67,000 settlement on their South Vienna home.

 

The lender didn't have a license, misapplied payments, claimed she didn't make them and failed to pay her taxes out of escrow, leading to a mistaken foreclosure filing.

 

...

 

More at:

http://www.springfieldnewssun.com/news/content/oh/story/news/local/2007/05/03/sns050407foreclosurestop.html

 

BREAD says payday-lending interest rates too high

Monday, May 7, 2007 11:29 AM

By Sherri Williams

 

THE COLUMBUS DISPATCH

 

Members of Building Responsibility Equality and Dignity (BREAD) are meeting tonight to kick off a campaign to address what they think are predatory practices by the payday-lending industry.

 

The organization of religious congregations wants the state legislature to cap the annual payday-lending rate at 36 percent, the same limit on interest rates that a federal amendment passed last year set for families of military personnel.

 

Tighter regulation is needed because of the explosive growth of the industry, said Carol Roddy, chairwoman of BREAD's research committee on the working poor. The number of payday lenders in Ohio has increased from 107 in 1996 to 1,562 in 2006, according to a Policy Matters report released in February.

 

...

 

More at:

http://dispatch.com/dispatch/content/local_news/stories/2007/05/07/RISEUP_web.html

 

Both from the 5/13/07 Canton Repository:

 

 

Beware of predatory lenders

By G. PATRICK KELLEY

REPOSITORY BUSINESS EDITOR

 

Predatory mortgage lending was always a business for those willing to roll the dice. But the snake eyes rolled lately are going past the lenders and hurting neighborhoods, the housing market and bank stocks.

 

A predatory loan is one that is set up to benefit the lender or broker, often at the expense of the borrower. Predatory lenders use unfair and deceptive practices to get people to sign loans that they either don’t need or can’t afford.

 

Most predatory loans are part of the subprime lending industry. But not all subprime loans are predatory.

 

...

 

More at:

http://www.cantonrep.com/index.php?ID=353970


* PHOTO: HAPPY ENDING Deanna Weis and her husband, John, almost lost their northeast Canton home to an adjustable- rate mortgage that inflated beyond their ability to pay. The Weises closed on a new, 30-year, fixed-rate mortgage last month. REPOSITORY BOB ROSSITER

 

Overextended couple almost lose their home

By G. PATRICK KELLEY

REPOSITORY BUSINESS EDITOR

 

CANTON News stories every day tell about mounting foreclosures and predatory lending in the mortgage market.

 

Most are about people about to lose their homes. But this story has a happy ending.

 

John D. and Deanna Weis paid $75,000 for their northeast Canton home in February 2004. They got a mortgage from Option One that’s called a “2/28” loan. That’s a flat interest rate for two years and an adjustable rate for 28 years.

 

...

 

More at:

http://www.cantonrep.com/index.php?ID=354067

From the 5/15/07 Dayton Business Journal:

 

 

Ohio ranks 9th in April foreclosures

Dayton Business Journal - 11:17 AM EDT Tuesday, May 15, 2007

 

Ohio had the ninth-highest number of foreclosures in the country in April, according to The Bargain Network Monthly U.S. Foreclosure Trend Report.

 

Ohio saw 4,751 homes enter foreclosure in April, a 6 percent increase from March, according to the report released Monday. The Buckeye State saw one foreclosure for every 1,006 households.

 

The hefty number of foreclosures is a result of sluggish economic times due to job stagnation in Ohio's economy, said Richard Stock, director of the University of Dayton's Business Research Group.

 

...

 

More at:

http://www.bizjournals.com/dayton/stories/2007/05/14/daily8.html?from_rss=1


From the 5/15/07 Enquirer:

 

 

Bill would aid foreclosees

STAFF AND WIRE REPORTS

 

Two U.S. senators from two states hit hardest by the rising tide of foreclosures today introduced legislation to change current law that forces individuals to pay income tax when they have part of their mortgage loan forgiven or are forced to foreclose because of inability to pay their mortgage.

 

“Removing this tax penalty encourages homeowners and lenders to work together voluntarily so that payments are manageable and foreclosure can be avoided,” said U.S. George Voinovich, R-Ohio, in a release. “This tax actually penalizes those who are trying to work it out in a responsible manner.”

 

The bill was introduced on the same day that a national seller of foreclosure data reported the number mortgages in foreclosure rose 62 percent in April. The number of Americans falling behind on home loans will climb this year as home prices fall and lending standards are tightened, RealtyTrac Inc. said.

 

...

 

More at:

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070515/BIZ01/305150065/-1/rss

 

From the 5/22/07 Enquirer:

 

 

Bad-loan hearing explores solutions

Panel looks at Ohio foreclosures

BY JON NEWBERRY | [email protected]

 

COLUMBUS - Ohio's Foreclosure Prevention Task Force held its fourth meeting Monday in what was billed as an opportunity for borrowers facing foreclosure or people who've been through the process to tell their stories.

 

Instead, almost all of the 21 speakers who signed up were officials from agencies that represent borrowers or businesses involved in mortgage lending - and all had an opinion on how to stem foreclosures in Ohio.

 

Mark Lawson, a senior attorney for the Legal Aid Society of Southwest Ohio, told the panel that his organization has so many people calling for help with mortgage-related problems that it can't begin to handle them all.

 

...

 

More at:

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070522/BIZ01/705220357/1076/BIZ

 

From the 5/27/07 Record-Courier:

 

 

Area leads in calls to foreclosure hotline

By Jason De Leon

Record-Courier staff writer

 

The 330 area code ranks No. 1 in Ohio for people using a U.S. Department of Housing and Urban Development hotline for foreclosure prevention assistance.

 

The Homeownership Preservation Foundation recently reported more than 7,000 calls to the 1-888-995-HOPE hotline came from Ohio in the last 12 months.

 

"Calls from Ohio have been steady with more than 400 calls every month last year and over 600 per month in 2007," said Dean Caldwell-Tautges of the HPF.

 

...

 

More at:

http://www.recordpub.com/news/article/2057231

 

From the 5/30/07 DDN:

 

 

Recorder says he's stunned by scope of mortgage problems

Blackshear says he has identified 3,180 high-risk loans made by eight subprime lenders.

By Lisa A. Bernard

Staff Writer

Wednesday, May 30, 2007

 

DAYTON — — Since January, Willis Blackshear has eyeballed countless mortgage documents looking for loans that run the risk of becoming part of Montgomery County's growing foreclosure crisis.

 

Last year, the county had the second highest foreclosure rate in the state — 9.4 for every 1,000 people. As the county recorder Blackshear's job includes managing mortgage and real estate filings.

 

His work in recent months has left him astounded by the number of local loan agreements that have potentially devastating consequences written in the fine print.

 

...

 

More at:

http://www.daytondailynews.com/n/content/oh/story/news/business/2007/05/29/ddn053007foreclosureprogram.html

 

From the 6/1/07 Lima News:

 

 

Foreclosure solutions hard to come by

Heather Rutz | [email protected] - 06.01.2007

 

LIMA – With the problem of foreclosures sweeping the country, City Councilman Derry Glenn wants to address the issue.

 

While government options to prevent foreclosures and deal with resulting abandoned and vacant homes are limited, some suggestions were made at a meeting Glenn called Thursday.

 

Community Development Director Amy Sackman Odum suggested involving churches in more financial education to prevent sub-prime loans and help people before they end up in foreclosure.

 

...

 

More at:

http://www.limanews.com/story.php?IDnum=39090

From the 6/7/07 Lorain Morning Journal:

 

 

Officials seek solutions to lower rate of foreclosures

ALEX M. PARKER, Morning Journal Writer

06/07/2007

 

ELYRIA -- Clerk of Courts Ron Nabakowski hopes a meeting of the minds of Lorain County's elected officials, business leaders, community figures and financial actors might be a way to help alleviate the county's skyrocketing home foreclosure rate.

 

He said he hopes to be able to grab some of the dollars from government-sponsored mortgage brokers such as Freddie Mac and Fannie Mae, as well as non-profit groups, to help people re-organize sub-prime or high-risk loans.

 

''We're trying to figure out any way to get mediation or help for people to get from that position,'' said Nabakowski. ''There's a lot of money that appears to be coming from Freddie Mac and Fannie Mae, and hopefully it's going to eventually filter down to communities. I think we'd be misfeasant if we weren't doing something.''

 

...

 

More at:

http://www.morningjournal.com/site/news.cfm?newsid=18439926&BRD=1699&PAG=461&dept_id=46371&rfi=6

 

10 mortgage lenders sued; state alleges illegal practices

Friday, June 8, 2007 3:38 AM

By Alan Johnson

THE COLUMBUS DISPATCH

 

 

Lender lawsuits

 

Ten companies have been sued (in the counties indicated) by Attorney General Marc Dann in the first crackdown on mortgage lenders under the state's predatory lending law:

 

Ace Mortgage Funding LLC, Cincinnati (filed in Hamilton County)

 

Premiere Service Mortgage, West Chester (filed in Butler County)

 

Island Financial LLC, Twinsburg (filed in Franklin County)

 

Sage Credit Compan LLC, Irvine, Calif. (filed in Franklin County)

 

Wall Street Mortgage Bankers, East Rockaway, N.Y. (filed in Franklin County)

 

All-Line Appraisals, Phoenix (filed in Franklin County)

 

Apex Mortgage Services LLC, Columbus (filed in Belmont County)

 

American Home Brokerage Corp., Garden Grove, Calif. (filed in Franklin County)

 

Robert C. Roach, the Valley Mortgage Group, Austintown (filed in Belmont County)

 

First Ohio Banc & Lending, Independence (filed in Belmont County)

Source: Ohio attorney general

 

Accusing 10 mortgage lenders of "unconscionable acts," Ohio Attorney General Marc Dann yesterday sued the companies he said violated the state's 5-month-old predatory-lending law.

 

...

 

More at:

http://dispatch.com/dispatch/content/local_news/stories/2007/06/08/BADMORT.ART_ART_06-08-07_A1_FN6V0I8.html

 

From Business First of Columbus, 6/13/07:

 

 

Report: Ohio had 5th highest foreclosure rate in May

Business First of Columbus - 9:48 AM EDT Wednesday, June 13, 2007

 

Ohio had the fifth highest foreclosure rate among the states last month, as the national rate ballooned 90 percent compared with May 2006, RealtyTrac Inc. said.

 

With 13,214 foreclosure filings last month, RealtyTrac said the state had one foreclosure for every 362 households.

 

Ohio also had the third highest number of foreclosure filings for the third straight month. California had the most, with 39,659, followed by Florida, with 21,704 filings.

 

...

 

More at:

http://www.bizjournals.com/columbus/stories/2007/06/11/daily14.html?from_rss=1

 

From the 6/14/07 Dispatch:

 

 

GRAPHIC: Declining numbers

 

Ohio quickly losing mortgage lenders

New law, soft housing market the causes, experts say

Thursday, June 14, 2007 3:43 AM

By Mike Pramik

THE COLUMBUS DISPATCH

 

The number of licensed mortgage brokers and loan officers in Ohio has declined sharply since an anti-predatory-lending law went into effect in January.

 

Last year, the Ohio General Assembly passed the Homebuyers' Protection Act to safeguard consumers against unscrupulous operators in the mortgage industry.

 

The Ohio Department of Commerce said that since Jan. 1, the number of licensed loan officers in Ohio has dropped 18 percent to 7,302 and the number of mortgage brokerages has fallen 22 percent to 1,749.

 

...

 

More at:

http://www.dispatch.com/dispatch/content/business/stories/2007/06/14/Mortgage_officers.ART_ART_06-14-07_C10_3O70VTA.html?type=rss&cat=7

 

From the 6/15/07 Dispatch:

 

 

Ohio still spinning in foreclosure fury

Despite slight improvement, state is No. 6 in delinquent loans, report shows

Friday, June 15, 2007 3:30 AM

By Denise Trowbridge

THE COLUMBUS DISPATCH

 

Troubles caused by subprime mortgage loans are still a sore spot in Ohio.

 

The state had 19.9 percent of its subprime adjustable-rate loans, the type typically made to borrowers with poor or no credit, go 90 days past due or into foreclosure during the first quarter of this year. That compared with 10.1 percent nationwide. About 2 percent of prime, fixed-rate mortgages were delinquent, almost triple the national average.

 

And even though late payments on many types of mortgage loans have declined slightly this year, Ohio ranked No. 1 in the nation in percentage of houses in foreclosure and No. 6 for delinquent loans, according to a recent survey by the Mortgage Bankers Association.

 

...

 

More at:

http://www.dispatch.com/dispatch/content/business/stories/2007/06/15/subprimeforeclosure.ART_ART_06-15-07_C12_8871AA9.html?type=rss&cat=7

Link contains photos. From the 6/19/07 Enquirer:

 

 

GRAPHIC: Suburban housing woes rising

 

Foreclosures keep climbing

Southwest Ohio cases jump 10 percent in first 4 months

BY JAMES MCNAIR | [email protected]

 

As borrowers default on greater numbers of mortgage loans, banks are filing record numbers of foreclosure cases.

 

According to new data from the Ohio Supreme Court, new foreclosure filings in Southwest Ohio in the first four months of 2007 rose 10 percent from the same period last year. As of March 31, Ohio was still leading the nation in the percentage of homes in foreclosure - 3.54 percent. Locally, the increase was most pronounced in Warren County, where foreclosures jumped 23.3 percent to 424 through April 30. Foreclosure filings grew 16 percent to 929 cases in Butler County, even before April data were fully compiled last week. Foreclosures rose 13.5 percent to 361 cases in Clermont County.

 

Perhaps the big surprise is that Hamilton County, with its large numbers of old homes and low-income borrowers, experienced a mere 4.4 percent increase in new foreclosure filings in the first four months of 2007.

 

...

 

More at:

http://news.enquirer.com/apps/pbcs.dll/article?AID=/AB/20070619/BIZ01/706190323/

 

From the 6/21/07 Cleveland Free Times:

 

 

PHOTO: ESOp's Barbara Anderson - A binder documents a neighborhood's fight.

PHOTO: Abandoned Homes in slavic village - Weeds take over.

 

News Lead

Credit Where It's Due

Subprime Loans Can Expand The American Dream. And They Can Devastate Neighborhoods.

By Charu Gupta.

 

First In A Series

 

Five years ago, Barbara Anderson didn't know what predatory lending was. As her elderly neighbors vanished from Slavic Village one by one, she chalked it up to hard luck.

 

But in time the pattern became impossible to miss. Homes were abandoned and boarded up with too much speed and frequency. Few were ever reoccupied, unless you counted the drug-boy squatters and the urban scavengers who stripped away the copper pipes and aluminum siding. Then the trucks started rolling through - day, night, didn't matter - dumping dirt and debris into empty lots, as if no one had ever lived nearby or ever would.

 

Anderson bought a home security system. She stayed indoors, kept her grandchildren inside too. It was no way to live, she remembers telling a friend. Residents were losing control of their neighborhood. They wanted to restore their part of the world, but how? They wanted to understand why so many of their former neighbors had been forced to flee.

 

...

 

More at:

http://www.freetimes.com/stories/15/7/credit-where-its-due

 

I thought it would be good to start a thread based soley on the growing foreclosure problem in both Ohio and the US. Unfortunately as most are aware, Ohio is at or near the top in a lot of these areas.

 

Here is chart showing the top zip codes in Ohio for foreclosures, I sorted the list by city and by total number of foreclosures, the full list is available at: (way to go Cincy in staying off the list!)

 


500 Top foreclosure zip codes

Where the most foreclosures have been filed.

June 19 2007: 3:56 PM EDT

 

NEW YORK (CNNMoney.com) -- The most foreclosure activity is clustered in two area; old Rust-Belt areas and new Sun-Belt ones.

...

 

More at:

http://money.cnn.com/2007/06/19/real_estate/500_top_foreclosure_zip_codes/index.htm

 

Charts:

http://www.pbase.com/csdameron/image/80922248.jpg

 

http://www.pbase.com/csdameron/image/80922312.jpg

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