Problems in the real estate market continue in the Metro Toledo area. The number of foreclosures in the area continue to increase, despite the efforts of the federal government. The Toledo Blade reports in its April 8, 2010 edition that 1 out of every 12 (8.05%) mortgage holders is 90 or more days delinquent. The percentage of delinquencies is up from 5.76% for the same month last year and compares to Ohio (7.66%) and the Nation (8.78%).
The Obama Administration has retooled their efforts to deal with this ongoing problem. An editorial in the NY Times published on April 4, 2010 outlines the new program.
In my practice, my clients have had very limited success with the previous federal government antiforeclosure programs. In my opinion, these programs have not worked because the banks are still calling the shots. The programs have not had any mechanism to compel the banks to rework the delinquent loans. Congress had the opportunity to give Bankruptcy Court Judges in Chapter 13 cases the authority to rework the terms of residential mortgage loans. Unfortunately, the Congress failed to pass the bill last year.
Michael P. Dansack, Jr.