Ohio Foreclosure Rates Among the Worst in the U.S.

August 03, 2012 (Press-News.org) Ohio Foreclosure Rates Among the Worst in the U.S.

With foreclosure rates around the country creeping upward in recent months, distressed homeowners in Ohio have been hit harder than most. According to a recent report from foreclosure tracking firm RealtyTrac, Ohio ranked seventh in the nation with a total of 10,359 foreclosures in May 2012. This translates to one in every 495 Ohio homes entering foreclosure during May, compared to the national average of one in every 639 homes during the same period.

Although the national foreclosure rate fell slightly from May 2011, Ohio saw an annual increase of nearly 24 percent over May 2011. This jump is partially due to the backlog that developed when several major mortgage lenders suspended foreclosure activities during the "robo-signing" controversy in 2011. After lenders reached a $25 billion settlement with government officials in early 2012, they began processing the backlog of foreclosures delayed by the investigations, causing a nationwide uptick in foreclosure rates.

In Ohio, where state law requires court oversight of foreclosures, working through the foreclosure backlog has been a relatively slow process. As a result, while foreclosure rates have begun to improve again in some states, foreclosures remain high in Ohio. For distressed homeowners hoping to save their homes from foreclosure in Ohio, the delay can provide a valuable opportunity to take action and save their homes.

Stopping Foreclosure With Chapter 13 Bankruptcy

In many cases, people facing foreclosure due to financial hardship can keep their homes and get out of debt by filing for Chapter 13 bankruptcy, which is often known as reorganization bankruptcy. Unlike Chapter 7 liquidation bankruptcy, Chapter 13 bankruptcy does not require borrowers to surrender their assets in order to have their debts discharged. Instead, during Chapter 13 bankruptcy, a person's debts are reorganized and paid off over 3 to 5 years according to a court-approved repayment plan. At the end of the repayment period, the remaining eligible debts are discharged.

For people facing foreclosure, one of the biggest advantages of bankruptcy is a court order called an "automatic stay," which requires creditors to stop all collections actions against the person filing for bankruptcy -- including foreclosure. When combined with a Chapter 13 repayment plan, the automatic stay can be a powerful tool to help people stop foreclosure and stay in their homes. For more information about stopping foreclosure with Chapter 13 bankruptcy, contact a knowledgeable bankruptcy attorney in your area.

Article provided by Marlatt Law Office
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