Ohio State Representative, Michael Foley, has proposed a bill to create a six-month moratorium on foreclosures of occupied properties in Ohio. The bill would authorize state court judges to impose a “cramdown” similar to those being discussed in the pending federal bankruptcy legislation, to reduce the mortgage indebtedness to the current appraised value of the property. The bill would also allow defendants to continue occupying their properties after foreclosure by paying rent. Furthermore, the bill would increase the filing fee in foreclosure cases by $1500, to create funds to assist distressed homeowners.
The Ohio Bankers League has spoken out forcefully against the bill. We have been advised that the Ohio Mortgage Bankers Association is meeting with Rep. Foley, to advance its position in response to the bill as well.
By coincidence, in New York, where a moratorium has also been considered, a State Senator named Brian Foley is scheduling hearings regarding that state’s foreclosure procedures.
We will keep you advised of further developments.
For copies of articles reporting these developments, go here.
If you have any questions on this information, please contact Mr. Larry R. Rothenberg, Esq. Larry Rothenberg is the partner-in-charge of the Cleveland real estate and foreclosure department of Weltman, Weinberg & Reis Co., L.P.A. He is the author of the Ohio Jurisdictional Section contained within the treatise, “The Law of Distressed Real Estate”, published by The West Group. The firm handles foreclosures and related litigation throughout Ohio, Kentucky, Indiana, Illinois, Pennsylvania and Michigan. Larry can be reached at (216) 685-1135 or via e-mail at lrothenberg@weltman.com.
Client Advisory is published by Weltman, Weinberg & Reis Co., L.P.A., an organization providing comprehensive creditor representation. The information contained in this advisory is a summary of legal information and is not intended to constitute legal advice on specific matters or create an attorney-client relationship. Contact any of our offices or visit our website at www.realestatedefaultgroup.com for more real estate related information, company facts and attorney profiles. (c)2009