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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 > Entry
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.
Permalink | Comments (23) | Post your comment | Categories: City of Dayton, Editorials, Ohio government, Ohio politics, Predatory lending, Scott Elliott
Comments
By Skeptic
December 13, 2009 1:42 AM | Link to this
Yes, indeed. The secret problem no one talks about is when the banks drive a home into foreclosure and then walk away at the last hour. The homeowner is forced out and the bank does nothing to save the home and it becomes a blight on neighborhoods. This damages everyone. Why are the banks allowed to do that? Serious reform is needed on every level.
By Kurt
December 13, 2009 8:01 AM | Link to this
Just another example of social enginnering by the democrats with the community reinvestment act,allowing deadbeats to buy homes.They knew they were lying when they filled out the loan application, if they cant fulfill the contract they freely agreed to, than they can live under an overpass in a pup tent.
By Ralph
December 13, 2009 8:40 AM | Link to this
Everybody is blaming banks but take a good look at your statement. In my case about 50% of my bill is TAXES! Your mortgage company doesn’t have the authority to negotiate lower rates but you do - Every time you vote for another bloody levy!
By Ralph
December 13, 2009 8:41 AM | Link to this
Everybody is blaming banks but take a good look at your statement. In my case about 50% of my bill is TAXES! Your mortgage company doesn’t have the authority to negotiate lower rates but you do - Every time you vote for another bloody levy!
By Ralph
December 13, 2009 8:41 AM | Link to this
Everybody is blaming banks but take a good look at your statement. In my case about 50% of my bill is TAXES! Your mortgage company doesn’t have the authority to negotiate lower rates but you do - Every time you vote for another bloody levy!
By Jim
December 13, 2009 8:55 AM | Link to this
With a Republican controlled State Senate, this is never going to happen. Their only concern is helping the wealthy and big business. Skeptic is correct. These banks are upside down too, so they walk away and blight the city. Drive around in the inner city and count the number of boarded up houses.
By Obama = Acorn
December 13, 2009 9:24 AM | Link to this
I feel like I should do a strategic default on my mortgage and live in the house for as long as I can just like a Democrat. but I always come back to: Big government = Small freedom
By fraud by deception
December 13, 2009 9:31 AM | Link to this
We need to start blaming the predatory borrower, who was embolden by Barney Frank and the other democrats. On the loan app is a clause that a borrower signs where he/she swears everything is true on the app. If they lied - they should got to jail. I call that fraud by deception.
By BH
December 13, 2009 10:32 AM | Link to this
IF YOU MAKE STUPID DECISIONS YOU HAVE TO PAY THE PRICE.
By what??
December 13, 2009 11:49 AM | Link to this
The legislation requires a $500 filing fee per foreclosure paid by the lender. This money will go to legal aid, the fair housing crew, and other housing advocacy groups. It was reported in the DDN that these groups had a meeting last week. Is it coincidental that an editorial favorig this economic windfall for these groups appears now?
By Jim
December 13, 2009 12:19 PM | Link to this
Fraud, Predatory borrowing? How can you be a predatory borrower? And Obama, Democrats are the only ones who default on their mortgages? Really? Your sweeping generalization shows how narrow minded and bigoted you are.
By Bill
December 13, 2009 1:21 PM | Link to this
The Predatory lending scam was exposed by County officials in the early 2000’s. Problem was nobody listened because the economy was rolling. The bigger issue the thieving borrowers who asked for and received way more money than their house was worth. The “fake equity” was then spend on plasma tv’s, cars, and a bunch of other consumerism items. Once the rates caught up with the BORROWER on his upside down loan, the great majority just walked away forcing their property into foreclosure. The cycle continued so many times Montgomery County looks like a war zone. After all that, add in the fact BARNEY FRANK(NHAND) legislated the banks had to loan money to people who couldn’t afford a dog house. This mess was born of greed, continues because of greed.
By Mehitabel
December 13, 2009 1:45 PM | Link to this
Bill is correct what happened in the 2000’s-but neglects to mention that it was the Republicans in power at the time that fought Mont.Co’s efforts to curb predatory lending. Also incorrect about Frank—this all started with GHW Bush—FOLLOW THE MONEY from the end of Reagan. Look what was spent by the Fed for homeownership and compare it to what they spend for small business. This is what Reaganomics wrought.
By davidss2
December 13, 2009 3:11 PM | Link to this
Sorry mehitable the democrats all pushed, dodd, frank, waters, to keep pouring money out to unqualified buyers who would never, never be able to pay a loan off in good times, let alone is a slowdown. even when Bush tried to change the rules in 06 they stomped their feet about “free mortgages” for the “little people.” Good try at revisionist history. Democrats always want to buy votes with OPM (other people’s money). That’s what they do. Socialism doesn’t work.
By Bill
December 13, 2009 6:50 PM | Link to this
When the foreclosure rate was going through the roof in Montgomery County during the early and mid 2000’s the silence was deafening from watchdog and consumer advocacy groups. The number one cuplprits were the realtors, mortgage brokers, and most of all, the BORROWERS who knew they could not afford the house they were purchasing. This was most prevelant in “starter” housing stock in the City of Dayton. The politicians who benefitted from this fiasco, both parties, are incapable of changing a thing. The city and surrounding areas will never rebound without a major influx of jobs and home buyers. Sad to say but this area has seen its better days.
By fraud by deception
December 14, 2009 12:36 PM | Link to this
Jim, ever heard of ACRON - Who’s narrow minded and bigoted now!
By Rich
December 15, 2009 10:14 AM | Link to this
How about OUR government giving THE PEOPLE the money instead of THE BIG businesses?? we would all have plenty and all the banks problems,all of the Car industries problems and every one elses problems would have gone away already and this economy and the United States would not have a problem it all would have cured everything if OUR government would have helped us THE PEOPLE WHOM elected them into office. Time has come for all of us to speak up and save this country end of story it is us Americans letting it all slip away not one person. I voted for Obama on the hopes he was THE honest person and would help us the American people out of the biggest mess we have ever been in and he is trying but it is Congress that gives all OUR money and our kids money away to big business instead of us and we are the ones suffering and going to keep suffering because this country is so dam greedy and only helps those that have money not the little guy that makes up most of the taxes etc. Time to give something REAL to the people of this country and put a stop to giving it to big business if we had what you gave these companies we would of spent a lot of it and this country would already be out from the hole it is in. Think of others before your Big Business friends do the right thing. open a phone line with tax payer money and lets have a vote on where money should go and go with the majority lets turn this country around and let the people choose like it was meant to be.
By davidss2
December 15, 2009 1:28 PM | Link to this
“I voted for Obama on the hopes he was THE honest person and would help us the American people out of the biggest mess we have ever been in”——-Now that’s a laugh in itself if you watched any, any of the media about his friends and associates that he tried to hard to keep from being exposed!!!!!++++++++++++++++++++++++ “and he is trying but it is Congress that gives all OUR money and our kids money away to big business instead of us and we are the ones suffering and going to keep suffering because this country is so dam greedy”———The congress is the democrats that people like you elected. $850 billion and most was pork to their friends and financial contributors!!!!!!! ++++++++++++++++++++++++++++++ “and only helps those that have money not the little guy that makes up most of the taxes etc.”===============Another misconception. People working and running small businesses pay most of the taxes. The relatively low income people pay Nothing. Nothing. Are you familiar with the welfare program concept of Earned Income Tax Credit for small earners getting OPM (other people’s money) back as a tax refund!!!! Lots of ways to manipulate that to get double rebates; check with any of the tax preparers whose advertisements will start soon after the frist of the year.
By dclay
December 16, 2009 12:15 PM | Link to this
Some of the above remarks are missing the mark. We are well past the point at which the people who knowingly bought houses they couldn’t afford have defaulted. We are now witnessing the effects off growing unemployment. Foreclosures are inevitable when people lose income through no fault of their own. Furthermore, the last thing banks want to do is own property. I have personally been in touch with a homeowner association, and was told that banks would do anything to prevent foreclosure. The problem is, most loan modification programs only delay the inevitable. Without a job or sufficient income, borrowers can’t make payments on any kind of loan modification. Employment is the key—-as long as unemployment keeps rising, foreclosures are sure to follow.
By dclay
December 16, 2009 12:17 PM | Link to this
Some of the above remarks are missing the mark. We are well past the point at which the people who knowingly bought houses they couldn’t afford have defaulted. We are now witnessing the effects off growing unemployment. Foreclosures are inevitable when people lose income through no fault of their own. Furthermore, the last thing banks want to do is own property. I have personally been in touch with a homeowner association, and was told that banks would do anything to prevent foreclosure. The problem is, most loan modification programs only delay the inevitable. Without a job or sufficient income, borrowers can’t make payments on any kind of loan modification. Employment is the key—-as long as unemployment keeps rising, foreclosures are sure to follow.
By MortageBubble07
December 16, 2009 10:48 PM | Link to this
hey guys, Like many Americans I purchased a home in 2007 and have lost a ton of value. In addition my pay has been decreased causing me much financial distress. I used a great modification guide online which I found at www.modifyingmadeeasy.com to help guide me through this process with my lender. I was able to get a 5 yr fixed with year 1 at 1%, year 2 at 2%, year 3 at 3%, year 4 at 4%, and year 5 at 5%. I found the guide easy to read and understand. I would recommend to all. Best of Luck
By MortageBubble07
December 16, 2009 10:50 PM | Link to this
hey guys, Like many Americans I purchased a home in 2007 and have lost a ton of value. In addition my pay has been decreased causing me much financial distress. I used a great modification guide online which I found at www.modifyingmadeeasy.com to help guide me through this process with my lender. I was able to get a 5 yr fixed with year 1 at 1%, year 2 at 2%, year 3 at 3%, year 4 at 4%, and year 5 at 5%. I found the guide easy to read and understand. I would recommend to all. Best of Luck
By MortageBubble07
December 16, 2009 10:51 PM | Link to this
hey guys, Like many Americans I purchased a home in 2007 and have lost a ton of value. In addition my pay has been decreased causing me much financial distress. I used a great modification guide online which I found at www.modifyingmadeeasy.com to help guide me through this process with my lender. I was able to get a 5 yr fixed with year 1 at 1%, year 2 at 2%, year 3 at 3%, year 4 at 4%, and year 5 at 5%. I found the guide easy to read and understand. I would recommend to all. Best of Luck