FORECLOSURES CRISIS WORSENS AMIDST SENATE INACTION

 
 
            Last year marked the 14th straight year that Hamilton County has seen an increase in the rate of home foreclosures. In May of last year, the Ohio House of Representatives passed meaningful foreclosure prevention legislation (House Bill 3) to help people stay in their homes and stabilize our struggling neighborhoods. House Bill 3 has been languishing in the Ohio Senate since that time. Interested party meetings have halted and conversations with the Senate have stalled. 
 

            Residents in Hamilton County face foreclosure for a variety of reasons including job loss, catastrophic illness, and predatory lending. Admittedly, not all of these individuals can be saved from foreclosure. However, we can work to save those who are able to pay towards their mortgages by modifying their loans and restructuring their payments. House Bill 3 does not call for changing the value of the loan, but rather, advocates that the loan payments be made affordable each month so that the borrower can stay in their home. When a person can stay in their home, the community is spared the prospect of vacant, blighted properties which lower property values.
 
            House Bill 3 includes a conditional 6 month moratorium on foreclosures to allow homeowners vital time to get back on their feet and back on a payment schedule. The bill builds on the high success rate of foreclosure counseling and provides funds to expand these programs. By highlighting foreclosure mediation services, we balance the need for flexibility in mortgage payments with the contractual obligations to the banking community. This bill is not about free passes or handouts; homeowners must work with lenders to continue mortgage payments in order to avoid foreclosure. The Foreclosure Prevention Act provides a glimmer of hope and a means of survival for those who are willing to work to stay in their homes. Just as we ask lenders and homeowners to work together to find a win/win solution to this problem, I stand ready to work in a bipartisan way with the Senate to address the foreclosure crisis.