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Ellen Belcher is the Dayton Daily News opinion pages editor. She writes about state government, education, the environment, higher education and all things Dayton.
Martin Gottlieb is an editorial writer and columnist for the Dayton Daily News opinion pages. He focuses on the political process itself and does such national issues as war, the economy, taxes and Social Security, as well as a hodge-podge of local and state issues.Home > Blogs > A Matter of Opinion > Archives > 2009 > December > 13
Sunday, December 13, 2009
Editorial: Homeowners need help now
Ohio cannot afford to sit still while foreclosures wreck its already teetering economy, and neither can Montgomery County.
The Ohio Senate, which has been slow to act, must take up the issue. Two reform measures passed by the House last spring have been practically ignored ever since.
Meanwhile, Montgomery County — among the hardest hit places in the state — cannot continue to remain behind other large urban counties, which are using court-ordered mediation to try to dent the swelling pile of foreclosure filings.
A report Friday from a company called RealtyTrac showed foreclosures finally dropping here. And yet, look at some other statistics.
Statewide, just over the course of 2009, the percentage of the almost 1.5 million home loans in Ohio that are delinquent has jumped to 15.3 from 13, according to the Mortgage Bankers Association.
That is a huge bump in a short period. One out of every 6.5 homeowners with a mortgage is at least 30 days behind on payments or already in foreclosure.
Lots of good ideas have been proposed for how to help. The two House bills would create a six-month moratorium on new foreclosures and require 60 days notice to tenants when the homes they rent go into foreclosure.
Sen. Shannon Jones, R-Springboro, also is pushing a bill that would require mediation through courts for owner-occupied homes in foreclosure.
The best ideas from the various proposals should be wrapped up in one bill. The key components must include:
— Regulation of companies that manage loans, requiring them to be more responsive to consumers. Too many homeowners facing foreclosure who want to try to work out their problems with the companies can’t get any help. In many other states, these companies are required to do better.
The rules also should prevent them from piling on late fees and other expenses to run up the debts of those facing foreclosure, making the hole they’ve fallen into ever deeper.
— Funding for foreclosure- prevention counseling, paid for by a new fee on foreclosures. Among the most difficult problems is helping consumers and courts figure out the best courses of action for loans that are in trouble.
Some cannot be saved. Others should be fast-tracked to mediation; organizations around the state that employ counselors in this role have found it a good strategy. The state can rely on groups with proven track records of success to provide these services.
— Basic tenant protections. Renters deserve early notification that their landlords are in foreclosure so they can weigh their options. The rules also should allow tenants to stay in their homes at least on a month-to-month basis after the property changes hands.
Beyond changes to state law, local jurisdictions must do their part, and so far Montgomery County has fallen short.
It should model the program in Franklin County through which judges order mediation for home loans that are salvageable. These programs are showing promise in other parts of the state.
Montgomery County, which has been studying the idea, hopes to have a similar program in place in early 2010.
A big problem in this crisis is that homeowners have no leverage. If they are in trouble, and the companies that manage their loans refuse to help, there is not much they can do to fight for their homes.
Everything possible must be done to encourage lenders to modify loans whenever the homeowner is willing and able to make reasonable payments. This is good for the consumer, for the community and also for the banks.
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