| Lucas County Foreclosures
The Fair Housing Center has compiled data
on foreclosure
filings initiated in Lucas County from 1998 through 2003.
The data reveals a startling and disturbing pattern.
Foreclosure filings have more than tripled in the County during
this time period with lenders filing record numbers of foreclosures.
For years 1998 through 2002, the data
collected by the Center included cursory information such as the date of
the filing, location of the property and plaintiff and defendant
information. The 2003 data
is more comprehensive and includes detailed loan information, where
available, such as amount of loan, interest rate, fees, and loan note
terms, conditions and provisions.
As the maps indicate, the number of
foreclosure filings in Lucas County has risen dramatically during the
time period that the data was collected. In 1998, there were 621 foreclosure filings.
By 2000 that figure had nearly doubled to 1,139.
By 2003, the number of foreclosure filings more than tripled to
2, 091.
Moreover, the maps illustrate that the
foreclosure filings are largely confined to the City of Toledo.
In the City of Toledo, the foreclosures are bundled in central
city and near central city communities as well as the east side of the
City. The foreclosures are
concentrated in communities where CDBG and other investment funds from
groups like the Northwest Ohio Development Agency and LISC have poured
millions of reinvestment dollars to revitalize and redevelop the areas.
These are areas with older housing stock and below average
homeownership rates.
According to the Mortgage Bankers
Association, Ohio leads the nation in foreclosure filings.
According to the group, Ohio’s rate of foreclosure was .86%.
Indiana, according to the Association, is second with a rate of
.76%. Ohio, Indiana and
Michigan all have foreclosure rates that are higher than the national
average.
While major cities like Montgomery County
(Dayton), Cuyahoga County (Cleveland), Franklin County (Columbus) and
Lucas County (Toledo) lead the state in foreclosures, this epidemic is
not limited to urban areas. Over
the past 10 years, foreclosure filings have at least doubled in 81 of
the state’s 88 counties. The
number of foreclosure filings quadrupled in 53 counties over the past 10
years.
Montgomery County ranks first in the
state for foreclosure filings based on population.
Lucas County had the largest change in foreclosure filings from
2001-2004 with an increase of 53% in filings during this time period.
The numbers of foreclosures are
staggering. The following
table illustrates the top 10 counties for foreclosure filings in 2004.
|
County
|
Number
of Foreclosures Filed
|
| Cuyahoga
|
9,751
|
| Franklin
|
5,940
|
| Hamilton
|
4,528
|
| Montgomery
|
4,002
|
| Lucas
|
2,766
|
| Summit
|
3,358
|
| Stark
|
2,129
|
|
Butler
|
1,952
|
| Lorain
|
1,510
|
| Mahoning
|
1,367
|
Consumer advocates such as the Coalition
for Responsible Lending attribute the dramatic increase in foreclosure
filings to comparable increases in the level of subprime lending.
Subprime lenders tend to be less regulated than their prime
counterparts. While most prime loans are sold to heavily regulated entities
like Fannie Mae, Freddie Mac and Ginnie Mae, subprime loans are
capitalized by the stock market. Indeed,
many subprime loans are securitized with junk bonds.
In a survey of Sheriff Departments
conducted by Policy Matters last year, 16 ranked job loss or weak
economy first among factors contributing to the increase in
foreclosures. However,
nearly twice as many Sheriff Departments – 31 – stated that
predatory lending or deceptive, high-cost loans was the main reason for
the rapid increase in foreclosure filings in the state of Ohio.
While subprime lending cannot in and of
itself be equated with predatory lending, the overwhelming majority of
complaints the Fair Housing Center sees lie in the subprime market.
Although the subprime market is experiencing exponential growth,
the majority of borrowers in the subprime market could quality for prime
loans with no or little help. Six
percent of the subprime market is comprised of “A” borrowers; 41% is
comprised of “Alt A” borrowers and 24% is comprised of “A-“
borrowers.
An additional contributor to the increase
in foreclosures includes Ohio’s weakened economy.
The state has lost thousands of high-paying manufacturing jobs.
While the state has seen some job growth, this growth tends to be
in service sectors that pay lower wages.
Moreover, enough jobs have not been added to the economy to match
the number of jobs that have been lost.
Lack of financial acumen on the part of
the consuming public has also contributed to the foreclosure problem. A
growing number of lending products with a wide range of terms and
conditions, require a borrower to be more informed than ever before
about the loan process. Consumers
have more lending options than ever.
Choosing between fixed, adjustable, reversed amortizing, balloon,
interest only and a slew of other exotic choices can be very confusing.
Homebuyers need more assistance in understanding the pros and
cons of multiple loan types to make truly informed decisions.
The Fair Housing Center’s response to
this challenge has been to start a predatory lending remediation
program, Restoring
the Dream, to help homeowners retain their homes and reduce
their mortgage payments. The
Center is also working with the Ohio Coalition for Responsible Lending
to advocate state lawmakers to pass laws with meaningful protections
from unscrupulous lenders and predatory loan practices.
Also, the Center, Northwest Ohio
Development Agency and other community organizations work diligently to
provide high quality consumer education to help borrowers understand the
lending maze.
Restoring the Dream
Restoring the Dream is a predatory
lending remediation program designed to help homeowners who are
experiencing problems with abusive loan provisions.
The Fair Housing Center, Northwest Ohio Development Agency
(NODA), and Fannie Mae® have created a partnership to help consumers
keep their homes. The
program is designed to provide alternative financing to borrowers who
may have become victims of abusive mortgage lending practices.
The partnership will be able to provide a
variety of important services:
- Analyzing
mortgage loans to determine if there are indications of predatory
and/or illegal lending practices
- Work with current mortgage holders to
negotiate loan balances or eliminate fees and excessive charges.
- Provide loan refinances with
participating lenders and NODA. Participating lenders provide the first mortgage.
NODA provides the second mortgage is needed. First
mortgages are purchased by Fannie Mae®.
- Provide loan and financial counseling
Lender Partners
- Charter One Bank
-
Fifth Third Bank
- Huntington Bank
- National City Bank
- Northern Ohio Investment Corporation
- Skybank
- State Farm Bank
View Lucas
County Foreclosure Maps, 1998 - 2003
|
