Ohio Receives $1.3 Million for Foreclosure Mitigation
Friday, September 12, 2008
In an attempt to help struggling homeowners and stem the rising tide of foreclosures in Ohio, the Federal Home Loan Bank (FHLB) of Cincinnati is doling out $1.3 million in grants to neighborhood housing groups and local banks as part of its “Preserving the American Dream” program.
One out of every 375 Ohio homeowners received a foreclosure filing in July, according to the most recent data from RealtyTrac. On a year-over-year basis, bank repossessions in the state were up by 33 percent. RealtyTrac ranked Ohio as having the fifth highest foreclosure rate in the nation, based on July's figures.
“The last thing a bank wants to do is foreclose,” Jeff Reynolds, VP of housing and community investment with the Cincinnati FHLB, told Ohio's Akron Beacon Journal. “It devastates the family. It hurts the community, and it hurts the lenders.”
The grant funding will provide mortgage counseling and foreclosure mitigation to Ohio families in danger of losing their homes. Homeowners who received loans through the FHLB's member banks will be able to receive up to $3,500 for assistance with these services. Local housing groups, such as the East Akron Neighborhood Corp. in Akron and Neighborhood Development Services in Ravenna, as well as five other community organizations, will identify eligible homeowners and oversee the localized initiatives.
The local banks participating include: The Bankers Guarantee Title & Trust Co., Fifth Third Bank, FirstMerit Bank, Home Savings Bank, Home Savings and Loan Co. of Youngstown, Huntington National Bank, KeyBank, National City Bank, North Akron Savings Bank, Third Federal Savings & Loan Association of Cleveland, and U.S. Bank.
One out of every 375 Ohio homeowners received a foreclosure filing in July, according to the most recent data from RealtyTrac. On a year-over-year basis, bank repossessions in the state were up by 33 percent. RealtyTrac ranked Ohio as having the fifth highest foreclosure rate in the nation, based on July's figures.
“The last thing a bank wants to do is foreclose,” Jeff Reynolds, VP of housing and community investment with the Cincinnati FHLB, told Ohio's Akron Beacon Journal. “It devastates the family. It hurts the community, and it hurts the lenders.”
The grant funding will provide mortgage counseling and foreclosure mitigation to Ohio families in danger of losing their homes. Homeowners who received loans through the FHLB's member banks will be able to receive up to $3,500 for assistance with these services. Local housing groups, such as the East Akron Neighborhood Corp. in Akron and Neighborhood Development Services in Ravenna, as well as five other community organizations, will identify eligible homeowners and oversee the localized initiatives.
The local banks participating include: The Bankers Guarantee Title & Trust Co., Fifth Third Bank, FirstMerit Bank, Home Savings Bank, Home Savings and Loan Co. of Youngstown, Huntington National Bank, KeyBank, National City Bank, North Akron Savings Bank, Third Federal Savings & Loan Association of Cleveland, and U.S. Bank.
