Foreclosure program to aid residents
By MICHAEL SCHULERHOME FORECLOSURES are on the rise in the nation and the Ohio Valley isn't immune to the crisis.
Statistics from the Ohio Supreme Court show that there was a record high of more than 83,000 new foreclosure filings in Ohio in 2007. Jefferson County had 255 of those cases, while Belmont County had 202 filings. There were 72 foreclosure cases filed in Harrison County.
Those numbers are expected to rise in 2008.
Now, homeowners in Ohio have a new tool that can help them through the difficult process and possibly even help them keep their homes.
An initiative called "Save the Dream" was started in Ohio this year that consolidates numerous state resources and programs related to foreclosure into one, unified program. All legal aid services in the state are participating in the program, along with nearly 1,100 attorneys across the state of Ohio who have volunteered their services for "Save the Dream," which is free of charge for those who meet the income and other eligibility requirements.
Basic income eligibility is 250-percent of the federal poverty guidelines or about $54,000 annual income for a family of four.
"We want to get the word out that there is help available for homeowners," said Robert Johns, managing attorney of the Steubenville office of Southeastern Ohio Legal Services. "We're working to try and save peoples' homes by looking at possible defenses the homeowners may have and workout agreements with lenders that will help them stay in their homes."
Homeowners don't have to wait until a foreclosure is filed to get the help, in fact most homeowners who are having difficulty and think they could face foreclosure are encouraged to call for assistance before it reaches that point.
"There are resources for those who are not in foreclosure yet and those people get referred to housing counselors and to other organizations where they can work it out agreements with lenders before foreclosure is filed," Johns said. "So it makes sense for them not to wait until they get served with court papers but to take action sooner rather than later."
He also said homeowners can contact a bank's loss mitigation department to try and avoid foreclosure.
"People don't want to delay in taking action because it gives them a much better chance at resolving the situation before foreclosure is file," Johns said. "But even after foreclosure is filed many times there are ways to work things out and there are legal defenses."
While legal defenses are available for homeowners, including those who are victims of predatory lending, Johns also said most lenders will work with homeowners.
"Most of the time, with the cases that we see, we are trying to work something out with the lenders," Johns said. "The lenders are open to that. They are facing a lot of pressure because the foreclosure crisis is nationwide. There is a lot pressure for lenders to work with borrowers who have a legitimate chance to save a home. So the banks and lenders are open to working with borrowers. It doesn't need to be adversarial."
Homeowners who are in foreclosure or are trying to avoid foreclosure can call "Save the Dream" at 1-888-404-4674 or go to the program's Web site at www.savethedream.ohio.gov.
They can also contact their local legal aid serve in Ohio toll free at 1-866-LAW-OHIO (1-866-529-6446). Residents of Jefferson, Harrison and Belmont counties, homeowners will be connected to the Steubenville office of Southeastern Ohio Legal Services. Monroe County residents will be connected to the Marietta office of SEOLS.
Schuler can be reached at shoe@timesleaderonline.com.
