DAYTON — Montgomery County Recorder Willis E. Blackshear believes he found a new way to tackle predatory mortgage lending, a huge problem for local homeowners.

New mortgage documents must be filed with the county recorder's office, and Blackshear wants an attorney to review them all to look for signs of predatory lending, such as large balloon payments due several years into the loan or dramatic increases in loan rates.

The recorder's office would then contact homeowners with mortgages flagged as predatory to make sure they are aware of the potential problem.

"Most folks are so excited about buying a new home they don't read the terms of their mortgage until they get into trouble," Blackshear said. "If we can make them aware of the problem before it happens, then maybe we can assist them to work with local lending institutions to refinance their loans."

Blackshear observed firsthand the devastation predatory loans can cause as the head of the tax delinquency department in the Montgomery County Treasurer's Office, where he worked for 20 years.

After nearly a decade of soaring home foreclosures in Montgomery County, 2006 became a record year for filings in common pleas court. By mid-November, foreclosures topped 4,385 and were 48 percent of the court's civil caseload.

"This is something that needs real attention. We've got to do something," Blackshear said. "This is so sad, and it's creating problems in neighborhoods."

Under Blackshear's plan, the recorder's office would hire a lawyer for the job or, ideally, pay stipends to University of Dayton law students to review mortgage documents. The Montgomery County Commission would have to fund the project before it could move forward.

"Predatory lending is a countywide problem, and I believe government should be proactive in solving it," Blackshear said.

Blackshear, who took over the recorder's office after former recorder Judy Dodge was elected to the county commission in November, plans to meet with the Cuyahoga County recorder on Friday to discuss the plan's potential. He hopes to launch the initiative this summer.

Contact this reporter at (937) 225-2362

or josmith@DaytonDailyNews.com.