Ohio Tries To Reduce Foreclosures On Mortgages
According to the report of Mortgage Bankers Association, Ohio is the leading U.S State with highest overall rate of foreclosures during the first three months of 2006 and is closely followed by Indiana and Michigan. According to Joel Ghitman, who is the director of Ohio Housing Finance Agency, this is an alarming situation. There has been a sharp increase in the rate of home loan defaulters who are unable to meet their monthly mortgage payments and are at the risk of losing their homes.
This problem is mainly persistent with borrowers who have taken a subprime loan at adjustable interest rates. Weakening economy of the Ohio state has been billed as the most important reason for the rise of defaulters. Many people who have lost their jobs are unable to pay back their monthly payments. Many of the lenders and brokers in Ohio are coordinating with struggling consumers in finding out solutions. In this context, Ohio Housing Finance Agency, with its vast network of 185 lending partners, has introduced Opportunity Loan Refinance Program for the purpose of helping borrowers in restructuring their mortgage payments and refinancing their mortgages. According to this program, loans would be offered for a period of 20 or 30 years term at fixed interest rates.
According to Joel Ghitman, this is one of the most prestigious programs of the agency in the state. He feels that if properly educated, many suffering borrowers can be benefited through this process. The agency expects to extend help to around 1000 families. For the purpose of refinancing mortgages, the agency will rely on issuance of taxable bonds to the customers.
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