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The
Foreclosure Prevention Task Force was established in March 2007 to provide a unified and
coordinated statewide response to the dramatic increase in foreclosures in Ohio.
The task force issued its
report in September 2007 with 27 recommendations on how Ohio could stem
the foreclosure crisis. The task force’s number one recommendation was for a public
awareness campaign and borrower outreach events to encourage homeowners to contact
their mortgage servicer if they are having trouble making their mortgage payment
or are facing a reset of an adjustable rate mortgage.
This recommendation led to the creation of the Save the Dream Ohio (SDO) campaign,
which was
introduced in March 2008. The campaign is a multi-media foreclosure prevention
initiative aimed at helping Ohioans take action to save the dream of homeownership.
In addition to the continued commitment to the SDO campaign, the State
of Ohio has worked to address every recommendation in the task force report.
In 2008, upon the recommendation of the Foreclosure Prevention Task Force,
the Ohio Department of Development’s
Office of Housing and Community Partnerships awarded $2 million from the
Ohio Housing Trust Fund to
23 HUD-approved housing counseling agencies across the state.
Launched in March 2008, the SDO hotline is
an easily accessible, centralized resource for foreclosure information and referrals.
Initially operated by the Ohio Department of Development’s Office of Community Services
and the Attorney General’s
Office Help Center, the hotline operations were consolidated into one call
center housed within the Attorney General’s office in October 2008. The SDO hotline currently receives 800 to 900 calls per week from homeowners seeking
foreclosure information and/or assistance.
In 2007, the
Save Our Homes Task Force was created to centralize county-by-county efforts
in the fight against foreclosure. Save Our Homes, led by the Attorney General’s
Office, is comprised of county coalitions made up of government, nonprofit, faith-based
organizations, businesses and citizens who work to connect homeowners with federal,
state and local prevention services. Each Save Our Homes coalition uniquely serves
its communities by hosting foreclosure workshops, trade fairs, call-in programs
and other activities to meet individual needs.
The goal of providing legal assistance to as many homeowners as possible was conceived
as a public-private partnership by an organizing leadership team. Responding to
recommendations made by the Foreclosure Prevention Task Force, the Supreme Court
administrative staff under the leadership of Chief Justice Thomas J. Moyer joined
with other public and private sector legal groups in 2007 to form the
Foreclosure Legal Assistance Group of Ohio, abbreviated as FLAG-Ohio.
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The pro bono initiative began in February 2008.
In response to a letter mailed to all of the state’s registered attorneys and follow-up
outreach efforts by the OSBA, the Columbus Bar Association and other metropolitan
bars, commitments have been received from more than 1,375 attorneys to provide pro
bono legal services to qualifying homeowners in their area in need.
As an SDO partner, the Ohio Supreme
Court developed a program
mediation model that courts can adapt to meet their local needs and
resources. Less than a year after announcing the availability of the model for Ohio
courts to use in home foreclosure cases, all 88 counties in Ohio offer foreclosure
mediation as an option. Developed in response to Ohio’s rising mortgage crisis by
the Supreme Court’s Dispute Resolution Section, this first-of-its-kind model in
the nation provided local courts with step-by-step directions to launch foreclosure
mediation programs.
OHFA collaborated with the ODOD Office of
Housing and Community Partnerships for the 2007 launch of the Ohio Home Rescue
Fund Program. This program provides critical financial assistance for homeowners
struggling to make their mortgage payments due to unforeseen, temporary life circumstances.
Distressed homeowners receive an interest-free second mortgage with the payments
deferred until the borrower sells or refinances the home. By the end of 2008, more
than 220 families had been helped to maintain their homes. Over $5 million has been
allocated to this initiative, with OHFA providing $3.1 million in funding and an
additional $2 million from ODOD.
As a result of the enactment of
House Resolution 3221 by Congress, the U.S. Department of Housing and Urban
Development (HUD) awarded more than $3.9 billion of
Neighborhood Stabilization Program (NSP) funds to states and communities
across the country to address the nation’s abandoned and foreclosed homes crisis.
In total, the State of Ohio and its jurisdictions received more than $258.1 million
of NSP funds, with HUD awarding $141.2 million directly to 22 cities and counties
and $116.8 million to the State of Ohio for distribution to cities, counties, and
regions.
While SDO has helped connect thousands of Ohioans with practical foreclosure
prevention resources and information, the foreclosure crisis is still pervasive.
Loan modifications can help some homeowners, but many others are facing larger problems
such as job loss, medical bills, divorce and other crises that make paying their
mortgage a daily struggle.
Now is the time for the Save the Dream Ohio senior leadership team to chart the course
for the next steps in foreclosure prevention for the State of Ohio. The challenges
facing the state are complex and require a unified response across state and local
government.
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