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Help out there for those facing foreclosure

By CARY ASHBY - Reflector Staff Writer | Friday February 26 2010, 11:24pm

There were 414 foreclosures filed last year in Huron County Common Pleas Court.

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That accounts for 61 percent of the total cases filed in 2009; there has been a 273 percent increase in the amount of foreclosures filed since 1999.

Since 2004, there has been an 85 percent increase. Five years ago, 224 foreclosures were filed. Statistics provided by Huron County Clerk of Courts Susan Hazel indicate there were 414 last year and 43 as of the end of January.

"That's certainly a concern," Hazel said.

But there is some hope.

"The good thing is many of those cases are being mediated. ... Being mediated means they're being worked through with the court and the parties," Hazel said.

There are two types of foreclosures. One is filed by banks for non-payment of one's mortgage.

"That's the No. 1 reason. ... Anything can cause that," Huron County Treasurer Kathleen Schaffer said. "Obviously, job loss is one (cause)."

The other is type of foreclosure is for non-payment of one's real estate taxes.

Huron County Assistant Prosecutor Dina Shenker has handled foreclosures for Prosecutor Russell Leffler's office since she was hired in March 2006. She said she only pursues cases when people are at least $5,000 behind on their taxes.

"That's a bare minimum," she stressed.

Shenker, who most often sees an average of five years of delinquent payments, said people in some of her cases are behind "in excess of $10,000." She said she wants the public to know it takes more than missing one or two mortgage payments to be prosecuted.

"We're still playing catch-up with the delinquencies (from before 2006) in Huron County," she said.

Patterns, repaying

Schaffer, the county treasurer since March 2007, was asked if there were any geographical patterns to recent foreclosures.

"I've seen quite a few from the Willard area. ... I'd say a third of the foreclosures are from Willard and the southern end of the county," she said.

The clerk of courts office doesn't track foreclosures by location.

"That might be something we'll have to do down the road," Hazel said.

The treasurer's office has received 30 foreclosure requests from the prosecutor's office since mid-2009.

"I think it's a lot," Schaffer said.

Many of the people involved in the cases Shenker sees are offered a 10-pay repayment contract. That means if the person signs the contract, their interest and penalties will freeze while the person is responsible for their current tax payment plus 10 percent of the delinquency.

"So in 10 payments their delinquency will be paid off," Shenker said.

"A great majority do that. We give them a chance to get out of their delinquency before we foreclose on them."

Shenker and Schaffer both said they have been able stop a lot of people from facing foreclosure because they've taken advantage of the repayment plan.

"We set up payment plans all the time," Schaffer said.

Causes, avoiding foreclosure

When asked about what causes foreclosures, Shenker said she doesn't know because by the time she receives the paperwork in the prosecutor's office, the person is "very delinquent."

"You never know what the initial cause may or may not be," she added.

However, some of the contributing circumstances are job loss, medical bills and financial hardship.

Historically, Hazel said, people would pay their mortgages first, even if they're in the middle of a financially difficult time.

"Now it appears they're choosing to not pay their mortgage," she said. "They need to talk to their lender to see if something can't be agreed upon."

Hazel stressed that people facing possible foreclosure need to stay in their houses because if the residence is vacant, there might be insurance liabilities. The clerk of courts said companies might not want to insure homes if no one is living there.

"(Residents are) going to take care of their home and have insurance coverage if they're in the home," Hazel said.

Another way to avoid foreclosure is to make sure one's "legal loose ends are being tied up," she said.

"The lender's attorneys aren't going to be looking out for the lender," Hazel added.

Realtor Kim More, who is certified in foreclosure options, said foreclosures should be the last thing people in trouble should consider.

"Some people think foreclosure or short sales (are) the only options," More said.

"Foreclosure isn't the only option. Nobody wants to lose their home. But I think there are these programs out there that can help. I think people should have the opportunity to keep their homes if they can. A loan modification is a lot cheaper than a refinance and you can't refinance without a job," she said.

"Banks would much rather work with a loan modification or a short sale. They lose too much money on foreclosures," More added.

Despite the steep rise in foreclosures, Hazel remains passionate about Huron County.

"I still think Huron County is a great place to live and a great place to raise a family, so hopefully we're going to get through all this," Hazel said.

Market stabilizing

The Ohio housing market continues to display signs of stabilizing, as it continues to rebound from the challenges it confronted throughout 2009, with sales activity in January nearly matching the month's results from a year ago, according to statistics provided by the state's Multiple Listing Services.

"Certainly the fact that our level of sales activity was relatively unchanged from a year ago is outstanding news and provides optimism for our prospects in 2010," said Doug McCloud, president of the Ohio Association of Realtors. "Equally encouraging is the fact that the average sales price posted its fourth consecutive monthly gain. Having prices stabilize is tremendous news for current and future homeowners and, we hope, an indication that the market is poised for a return to normalcy.

"The economic challenges that affected Ohio and the nation since late in 2008 have certainly not dissipated entirely, but what we've seen transpire in the final quarter of 2009 with robust sales and prices seems to have carried forward as we start the new year," McCloud continued. "One thing has become apparent...that the desire to make the American Dream of homeownership a reality remains strong throughout Ohio."

Sales in January 2010 reached 5,278, a 3 percent decrease from the 5,441 sales posted during the month in 2009. The average sales price jumped to $121,245, a 13.3 percent increase from the January 2009 mark of $107,034.

Total dollar volume in the market reached nearly $640 million in January, a 9.9 percent increase from the $582 million posted during the month a year ago.

"We remain bullish on the marketplace as interest rates remain at historic lows, prices have stabilized and begun to trend upward, sellers are realistic in their expectations and consumers understand that long-term, owning a home is a tremendous investment," McCloud said. "Combine that with the fact that the home tax credit for first-time buyers was extended through April and even expanded to include long- time buyers and it's no surprise that the industry is so upbeat about the market's prospects in the coming months."

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