Last night, Cleveland City Council passed a resolution to place a moratorium on foreclosure cases filed in the Cuyahoga County Court of Common Pleas.   Calling the resolution a step toward “Breaking the Cycle of Foreclosure and Abandonment,” the Cleveland City Council resolution urges the Cuyahoga County Court of Common Pleas to initiate an emergency stay on all active and newly filed foreclosures cases.  The stay would only be placed on cases involving occupied residences and would not affect those cases involving abandoned or vacant properties. 

In its press release, the City Council cited two studies, which they claim shows the “harmful impact” of foreclosures on Cleveland neighborhoods.  One study by Case Western Reserve University (Cleveland, Ohio) shows a 70% loss of market value in foreclosed residential property.  Cleveland City Council also cited the success of Cuyahoga County’s 211 counseling program to avoid foreclosure.  

The resolution is not an ordinance, but urges the Cuyahoga Court of Common Pleas to initiate the foreclosure moratorium.  A copy of the resolution will be delivered to the Presiding Judge of Cuyahoga Court of Common Pleas and the Chief Magistrate handling the foreclosure docket.  The court is in the process of establishing additional programs to reach out to homeowners facing foreclosures.   Cleveland is located in Cuyahoga County, Ohio.  However, Cuyahoga County is comprised of more than 50 cities and townships, in addition to the City of Cleveland.

If you have any questions on this information, please contact Jennifer M. Monty, Esq. an associate focused on litigation & defense within the Real Estate Default Group located in the Cleveland office of Weltman, Weinberg & Reis Co., L.P.A. Jennifer can be reached at (216) 685-1136 or via e-mail at jmonty@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 information, company facts and attorney profiles. (c)2008