Ohio Foreclosure Prevention Program

For 2009, Ohio ranked 12th among all states in foreclosure rate, a drop of 10.53% from the year before. Nationally, 2009 was the worse year for foreclosures in US history, with 2.8 million property owners receiving a foreclosure notice.

Ohio’s anti-foreclosure initiative is called Save the Dream. It was created by the state’s Foreclosure Prevention Task Force, a public-private partnership with the full support of multiple state departments, from the Governor’s Office to the Supreme Court of Ohio. On the private side Save the Dream involves 1,300 attorneys volunteering from the bar association, legal aid and a slew of housing counseling agencies. More than $7.5 million in grants are being funneled through the Ohio Department of Development and Ohio Finance Agency for counseling. Another $5 million in rescue loans and grants have been provided to Ohioans in distress. The state has reached an agreement with nine major servicers to commit to making every attempt possible to prevent mortgage default and foreclosure.

The program offers this advice for distressed borrower:

• Contact your servicer at the first sign that your mortgage might be too much for you. If the foreclosure process has started, call today.
• Seek counseling from an agency approved by the U.S. Department of Housing and Urban Development to discuss your choices.

The Ohio Supreme Court has initiated a process of foreclosure mediation between the borrower and mortgage servicer to be held in all common-plea courts. Hundreds of attorneys across the state have signed up to work as pro bono mediators. The law now requires servicers to meet with borrowers in mediation if no other resolution can be reached.

The state is proactive in steering its citizens away from mortgage rescue scams, offering the same advice presented on MortgageOutreach.org.

The program also cautions against being victimized by predatory lenders if you’re turning to refinancing as an option. Predatory lenders offer mortgages that primarily benefit the lender, not the borrower. The program urges dealing only with licensed mortgage lenders, brokers and loan officers operating under federal and/or state regulators. To determine if your broker or lender is licensed by the State of Ohio, contact the  Ohio Division of Financial Institutions.

Additionally, the state urges Ohioans to contact Ohio State Legal Services or the Ohio State Bar Association to find an attorney if needed.

If you are unable to reach your servicer or local state program, or if you would like additional assistance in this process contact Mortgage Outreach at 1-866-408-0420. Mortgage Outreach works directly with many servicers to help find solutions for borrowers that are struggling to keep up with their payments.