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By Rick Armon
Beacon Journal staff writer
POSTED: 05:38 p.m. EDT, Jul 01, 2009
Foreclosure lawsuits are on the rise again in Summit County.
After two years of declines, the number of lawsuits filed in Common Pleas Court climbed in the first six months of this year.
Banks and mortgage lenders filed 2,249 suits compared with 2,088 during the same period last year. April had the second most ever for a single month at 452.
Experts blamed the surge on the economy and on several mortgage lenders ending lawsuit moratoriums this year.
They also predicted the increase will continue, especially with the county unemployment rate at 9.7 percent and a new wave of adjustable-rate mortgages coming due for interest hikes.
''If utilities go up, we have a real problem,'' said Mary Schoenfeld, a mortgage banker with American Eagle Mortgage in Akron and chairwoman of the Summit County Consumer Affairs board of directors.
Summit has been the envy of many Ohio counties because lawsuits had been dropping here while increasing elsewhere. Lawsuits don't always lead to someone losing a home, but are a strong indicator of economic and housing troubles in a community.
Even during the local decline, experts had warned that many lenders were holding off on filing suits because of public pressure and they were overwhelmed with homeowners defaulting on loans.
For example, mortgage giants Freddie Mac and Fannie Mae have ended lawsuit moratoriums. Together, the companies own or guarantee almost 31 million home loans worth about $5.5 trillion or about half of all U.S home mortgages.
The U.S. government has failed to help homeowners most in need, despite giving billions in federal aid to banks, Schoenfeld said.
''I truly don't believe in my heart that any of the programs enacted in Washington — whether under the Bush administration or Obama administration — has assisted those people who are in dire need of assistance,'' she said.
Many lenders have been more willing to work with homeowners to avoid foreclosure, especially if borrowers are employed, experts said.
A major problem, though, is that about 50 percent of homeowners don't respond to the lawsuits filed against them, Common Pleas Judge Elinore Marsh Stormer said.
Sometimes, people abandon the home, leaving a vacant property and a potential target for vandalism or other crime, she added.
That provides no opportunity for the courts to help with its mediation program, Stormer said. Sixty percent of the foreclosure cases referred for mediation are settled, she said.
''People have to answer the complaint,'' she said. ''We'll take an answer anyway because there is perhaps a solution.''
RealtyTrac, a California company that monitors default notices, auction sale notices and bank repossessions, has identified Ohio as having one of the highest foreclosure rates in the nation. One out of every 445 Ohio households received a foreclosure filing in May, the company has said.
Foreclosures remain a problem in the state, said Jennifer Flatter, a legislative liaison for the Ohio Department of Commerce, which oversees the state's ''Save the Dream'' foreclosure prevention program.
Unlike a year ago, more people are seeking help because of job loss or employment changes, she said.
''We're going to continue to see the foreclosure problem for a little while,'' Flatter said.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com. The Associated Press contributed to this article.
Foreclosure lawsuits are on the rise again in Summit County.
After two years of declines, the number of lawsuits filed in Common Pleas Court climbed in the first six months of this year.
Banks and mortgage lenders filed 2,249 suits compared with 2,088 during the same period last year. April had the second most ever for a single month at 452.
Experts blamed the surge on the economy and on several mortgage lenders ending lawsuit moratoriums this year.
They also predicted the increase will continue, especially with the county unemployment rate at 9.7 percent and a new wave of adjustable-rate mortgages coming due for interest hikes.
''If utilities go up, we have a real problem,'' said Mary Schoenfeld, a mortgage banker with American Eagle Mortgage in Akron and chairwoman of the Summit County Consumer Affairs board of directors.
Summit has been the envy of many Ohio counties because lawsuits had been dropping here while increasing elsewhere. Lawsuits don't always lead to someone losing a home, but are a strong indicator of economic and housing troubles in a community.
Even during the local decline, experts had warned that many lenders were holding off on filing suits because of public pressure and they were overwhelmed with homeowners defaulting on loans.
For example, mortgage giants Freddie Mac and Fannie Mae have ended lawsuit moratoriums. Together, the companies own or guarantee almost 31 million home loans worth about $5.5 trillion or about half of all U.S home mortgages.
The U.S. government has failed to help homeowners most in need, despite giving billions in federal aid to banks, Schoenfeld said.
''I truly don't believe in my heart that any of the programs enacted in Washington — whether under the Bush administration or Obama administration — has assisted those people who are in dire need of assistance,'' she said.
Many lenders have been more willing to work with homeowners to avoid foreclosure, especially if borrowers are employed, experts said.
A major problem, though, is that about 50 percent of homeowners don't respond to the lawsuits filed against them, Common Pleas Judge Elinore Marsh Stormer said.
Sometimes, people abandon the home, leaving a vacant property and a potential target for vandalism or other crime, she added.
That provides no opportunity for the courts to help with its mediation program, Stormer said. Sixty percent of the foreclosure cases referred for mediation are settled, she said.
''People have to answer the complaint,'' she said. ''We'll take an answer anyway because there is perhaps a solution.''
RealtyTrac, a California company that monitors default notices, auction sale notices and bank repossessions, has identified Ohio as having one of the highest foreclosure rates in the nation. One out of every 445 Ohio households received a foreclosure filing in May, the company has said.
Foreclosures remain a problem in the state, said Jennifer Flatter, a legislative liaison for the Ohio Department of Commerce, which oversees the state's ''Save the Dream'' foreclosure prevention program.
Unlike a year ago, more people are seeking help because of job loss or employment changes, she said.
''We're going to continue to see the foreclosure problem for a little while,'' Flatter said.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com. The Associated Press contributed to this article.
Comments
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Anti-Politically Correct & Anti-GOP, OH
Posted 05:57 PM, 07/01/2009
Everyone laid off during the BUSH administration ran out of unemployment benefits. No surprise there.
Posted 06:07 PM, 07/01/2009
Low cost housing now available in Akron Ohio.
Akron, OH
Posted 06:30 PM, 07/01/2009
@SPD And soon enough those who became and will continue to become unemployed during the MESSIAH's administration will also run out of unemployment.
Oh wait.. I forgot.. he is saving jobs! yeah right...
canton, oh
Posted 07:14 PM, 07/01/2009
the VAST majority of people loosing their homes is due too stupidity.....plain and simple, bought houses they couldn't afford, signed interest only payment mortgages, ARM's, and then were shocked when the true bill came a calling.....
Posted 09:14 PM, 07/01/2009
@Working American "due too stupidity" ... One out of every 445 households received a foreclosure filing in May. Guess that means there are a lot of stupid people living in Ohio. Including Working American who doesn't know when to use the words ... to, two and too ... to make a point!
leon, wv
Posted 09:36 PM, 07/01/2009
fghfgh
leon, wv
Posted 09:39 PM, 07/01/2009
banks are crooks just like all the crooks on high street downtown let me tell ya something b c left all the good jobs left akron and barberton i tell ya what id rip out every piece of copper the bath tub the cabinets the wall the glass think about it its not against the law to break your own stuff lol
leon, wv
Posted 09:41 PM, 07/01/2009
akron did it to themselves the drug and fast living turned akron in to sodam and gamora
canton, oh
Posted 04:45 AM, 07/02/2009
class73 --- my context for the use of "too" is correct, "too" is meant to imply "very" or "excessive" .....and yes, there are a lot of stupid people out there.....why would anyone with just a morsel of common sense sign a "interest only mortgage" or a ARM (when the bank has the right too raise the interest every 6 months with NO end in sight).....that my friend, should be in the dictionary under the word....STUPID!!!!
Posted 07:22 AM, 07/08/2009
Check out http://obamamortgage2009.blogspot.com or obamamortgage2009.blogspot.com There needs to be a program for the elderly but not quite to retirement age for mortgage modification when the have lost their job during this particular recession. I made a decent wage because I put my time into a company and now have no job. I am looking at $10 - to $12 hr jobs after working all my life. You can't make a mortgage payment on that kind of money. I will eventually lose my home.
