Policy Matters today released the issue brief, “Ohio foreclosures still at crisis level,” available at policymattersohio.org/ohio-foreclosures-jan2012.
New housing foreclosures remain at historically high levels in Ohio, and seem to be stabilizing around peak levels of 80,000. In short, Ohio homeowners are drenched, with one in three “under water,” owing more on their homes than current market value. One in six mortgage holders is delinquent or in foreclosure in our state.
“Housing foreclosures and negative equity are preventing our economy from recovering,” said David Rothstein, report author and project director for asset building at Policy Matters. “Without substantial program changes, we will continue to see vacant houses, sinking property values, and communities in peril.”
President Barack Obama was in town Wednesday, in part to meet with Cleveland-area families facing foreclosure. As our issue brief shows, foreclosures are affecting families in every community, not just urban centers. The number of new filings grew in 2010 in 30 of Ohio’s 88 counties; 24 of those counties had populations below 100,000.
News reports indicate that President Obama will announce today at Shaker Heights High School that he is appointing former Ohio Attorney General Richard Cordray to head the Consumer Finance Protection Bureau.
“The Bureau needs a strong director to enable it to work effectively, and Mr. Cordray’s work on behalf of consumers shows that he can do the job,” said Rothstein. “This is good news for Ohioans, as it will strengthen much-needed consumer protections.”
Note: This article was reposted with permission from Policy Matters Ohio, a non-profit policy research organization founded in January 2000 to broaden the debate about economic policy in Ohio. They work to create a more fair, prosperous, sustainable and inclusive Ohio. To read more from Policy Matter Ohio, click here.
