News:  Surprise Resolution That Is Suspending Foreclosures

What happens when foreclosures start adversely affecting the financial stability of counties throughout the nation?  Here’s one possible solution.

In what might be a sign of things to come, Ohio’s Cuyahoga County will suspend foreclosures on tax-delinquent, owner-occupied residential homes for six months from December 2009, according to an announcement from the county’s treasurer. 

Through the moratorium, county officials say they want to give borrowers more time to catch up on delinquent taxes.

According to the announcement, the suspension will keep more homes off of a real estate market already weighted down by foreclosures, especially in Cleveland, Ohio, situated in Cuyahoga County along Lake Erie’s shores. 

“Things are not getting better, they’re getting worse,” said Jim Rokakis, the county’s treasurer.  “Vacant, foreclosed properties not only impact the homeowner, they harm entire neighborhoods and communities.”

In fact, financial analysts who many felt were irresponsbly comparing our dire economy to that of the period of the Great Depression may not have been far off course.

The Cuyahogo County treasurer’s office reported likening the situation they now find themselves in is akin to the 1930s.  In other words, this is their Dust Bowl. 

Mr. Rokakis goes on to say:  “It is my hope that this measure will cause fewer homes to become vacant and alleviate some of the human misery being caused by the economy and the collapse of the market.”

Moratoriums on foreclosure activity have become more and more prominent among lenders as the volume of homeowners behind on their mortgage has continued to grow. 

Many have suggested including reports from the St. Louis Refinancing Group news team that such ‘foreclosure freezes’ merely postpone the inevitable.

But Cuyahoga County’s tax-lien foreclosure moratorium is the first such effort by a county to halt foreclosures for borrowers not paying property taxes and albeit should be commended for taking such proactive steps in trying to help their constituents.

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