The current high rate of foreclosure is both a chief policy concern and a key priority at the Federal Reserve Bank of Cleveland. Subprime lending has occurred at a higher rate in low- and moderate-income communities, a fact that merits attention because subprime mortgages are more likely to end in foreclosure.

For borrowers, foreclosures can result in a loss of home equity, impaired credit, and more limited access to stable housing and employment. Vacant and abandoned properties must be restored to productive use in order to stabilize neighborhoods and to re-establish housing markets.

The Cleveland Fed joins the Federal Reserve System in addressing the mortgage and foreclosure crisis through a variety of measures, including revisions to the Home Ownership and Equity Protection Act regulations. This online resource center offers resources and tools for consumers for mitigating the effects of foreclosures.

Cleveland Fed Foreclosure Prevention Workshops

Worried about Losing Your Home? Get Help Now! At these one-day workshops, you can:

• Meet one-on-one with your lender and/or a housing counselor to discuss a workout plan for your mortgage. Please be sure to bring information on your income, expenses, and mortgage with you
• Learn about local financial education resources
• Attend presentations on repairing your credit, budgeting, homeownership, and foreclosure scams that can take you from bad to worse.

Workshops are FREE and OPEN TO THE PUBLIC! For more information, call 800.433.1035

Ohio’s Foreclosure Prevention Save a Dream Effort

Ohio’s Foreclosure Prevention Task Force helps Ohio families avoid foreclosure. One point task force members heard repeatedly from both lenders and counseling agencies was that if consumers seek help early then they have a much greater chance of avoiding foreclosure.

Savethedream.ohio.gov provides information and highlights programs you can use to help save the dream of homeownership. Here you can learn about available resources, the value of working with local housing counselors, and the importance of contacting your mortgage servicer.

Governor wants you to have all the information you need on this important issue to prevent foreclosures in Ohio.

Ohio State Legal Services Association

OSLSA is a nonprofit, publicly funded, legal services program that provides foreclosure representation to low-income Ohioans in 30 Ohio counties.

OSLSA acts as general counsel to Ohio’s poor. It is committed to seeking legal recourse necessary to stop foreclosures of our clients.

Are you having trouble keeping up with your mortgage payments or have you received a notice from your lender asking you to contact them?

• Contact your lender immediately
• Contact a HUD-approved Housing Counseling Agency
• Call toll FREE (800) 569-4287 or TTY (800) 877-8339 for the hearing impaired.

OHFA Refinance Program

The Ohio Housing Finance Agency (OHFA), the state’s affordable housing entity, will unveil a refinancing program designed to help homeowners facing foreclosure in the State of Ohio.

“We are aware of the detrimental effect of unaffordable monthly mortgage payments on the people of the State of Ohio,” said Doug Garver, executive director. “The Agency has worked diligently with our partners to develop a refinancing program that will address this issue. After helping over 100,000 families purchase their first residence, OHFA is determined to help other families continue to afford the place they call home.”

The refinance program offers 30-year, fixed-rate loans designed to help borrowers burdened by a change in circumstance, such as a divorce or change in employment, or by a lending product that no longer meets their needs, such as interest-only mortgages or adjustable rate mortgage loans which have entered or will soon enter the adjustable stage.

To assist families with closing costs, the refinance program also offers a 20-year, fixed-rate second mortgage option at an amount up to four percent of the appraised value of the home. The second mortgage may be used for other similar financing charges such as payoff of the first mortgage, including late fees or attorney fees. Interest rates on this option will be two percent above the rate of the first mortgage.

OHFA’s network of over 185 lending partners throughout the state will be able to offer the refinance program in all 88 counties. Unlike OHFA’s First-Time Homebuyer Program, the refinancing program does not impose limits on the loan amount. However, participants must have a household income that does not exceed 125 percent of the area median gross income in order to qualify. These limits vary by county and range from approximately $73,000 to $84,000 with an average of $74,600. Income limits and a list of participating lenders is available at www.ohiohome.org or toll-free 888.362.6432

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