Cleveland Law Library Weblog

Cuyahoga County CP Court Posts Documents re: Proposed Foreclosure Mediation Program

On March 24, 2008, the Cuyahoga County Common Pleas Court posted documentation regarding a proposed Foreclosure Mediation Program. The plan outlines steps which should be taken once a foreclosure complaint has been filed. Step 4 allows for a borrower to request mediation and requires the lender to complete a questionnaire. The Mediation Department would then review both documents at Step 5  and determine whether the case should be mediated or returned for further foreclosure proceedings. The remaining steps outline the process of holding prepatory meetings, the mediation itself, filing of the mediation report, and ongoing assessment and community outreach efforts. Judge Eileen T. Gallagher is accepting comments on the proposal through April 7, 2008. Click here to read our prior post about the Ohio Supreme Court's issuance of an Ohio Model Foreclosure Mediation Program.

Save The Dream-Stop Ohio Foreclosures

To try and stem the rising tide of foreclosures in Ohio, the Ohio Supreme Court and state agencies and organizations from around the state have created another tool for Ohio's Foreclosure Prevention project called Save The Dream. Although Save the Dream is only 2 weeks old itself, on April 1st, Ohio Supreme Court Chief Justice Thomas Moyer joined Governor Strickland, Attorney General Marc Dann, Treaurer Richard Cordray, Commerce Director Kimberly Zurz, Ohio State Bar Association President Robert Ware, and legal aid leaders in announcing a new initiative which promises to connect qualified homeowners with over 1,000 legal aid and volunteer attorneys who will provide free legal services. This new assistance plan fulfills specific recommendations of the Governor's Foreclosure Prevention Task Force.  Lawyers who want to volunteer their services are encouraged to visit the Ohio State Bar Association's website. The Clevealnd Metropolitan Bar Association hosted Justice Moyer and others for a Press Conference on the 1st. The website for the STD project provides foreclosure information and resources, information on alternatives to foreclosure, scams and predatory lending, the  foreclosure process, informational videos, and places to go for legal assistance.

Ohio Model Foreclosure Mediation Program Available

The Ohio Supreme Court recently made available a new model mediation program for foreclosure cases. According to the Court's Press Release, the new program is "in direct response to Ohio's rising mortgage crisis." The program includes "best practices, related documents, forms and other resources" that the courts can use or modify. Courts that wish to implement the program can obtain free assistance from the Ohio Supreme Court. The program could help in Cuyahoga County, which is among the top 5 Ohio counties experiencing a rise in foreclosures. Incidentally, Cuyahoga County Common Pleas Court is hiring a Foreclosure Mediator.

Ohio AG Issues Report on Mortgage Foreclosure Crisis

The Ohio Attorney General has issued a Report on the state's mortgage foreclosure crisis. According to a Press Release, the Report is critical of the entities that are loaning money under sub-prime lending practices. Click here to read the Report itself, which concludes that borrowers are not getting enough help from lenders, those who do get help are receiving loan modifications, borrowers either default long before their ARM rates increase or self-help their situations by catching up on their rising debts, and refinancing is disappearing as an alternative to foreclosure.

Cleveland Suing 21 Companies Over Foreclosures

The City of Cleveland is suing 21 investment companies over the rise in foreclosures and abandoned homes around the City. The case docket and list of parties can be found by searching Case No. CV-08-646970 on the Cuyahoga County Common Pleas Court's docket. In an interesting twist, the City has brought suit for damages under its nuisance law, claiming that the companies interfered with the public's "rights and interests." Click here to read the Mayor's full press release, identifying the Mayor's motivation and listing all of the named defendants.  Click here to read an article on the suit from Crain's Cleveland Business.

Pro Bono Help Needed to Stop Foreclosures

Because Ohio foreclosures are up 40% compared to 4 years ago, Ohio Supreme Court Chief Justice Thomas Moyer has asked all lawyers in the state of Ohio to provide pro bono legal service to help residents facing foreclosure. According to the Plain Dealer, Moyer's plea came following after meetings he attended with Attorney General Marc Dann, state and county officials, and members of state legal aid organizations. The state hotline for people who believe they have been the victim of foreclosure fraud or predatory lending practices is 877-244-6446.

Alleged Mortgage Fraud in Solon, Ohio

Last week, Cuyahoga County Prosecutor Bill Mason announced indictments involving 26 people who were allegedly involved in a scheme to cheat lenders of $2.6 million dollars. The defendants include a cab driver and a machinist who allegedly acted as "straw buyers" and inflated their incomes in order to borrow heavily to buy expensive homes in Solon, Ohio. The Prosecutor's office has posted a detailed summary of each of the 4 home sales that were involved. Click here to read the Plain Dealer's story on the cases.

Report Issued by Ohio Foreclosure Panel

It is no secret that Ohio has one of the highest foreclosure rates in the country. Hopefully, a recent report issued by the Foreclosure Prevention Task Force will provide some recommendations to solve this growing problem. The Report is available on the Internet and contains 27 recommendations, including those which suggest that mortgage lenders should be more flexible when drafting refinancing agreements and the state should inject funds to help credit counselling services. Governor Strickland established the Foreclosure Prevention Task Force in March of this year and charged it with the job to "provide a unified response to improve prevention methods and manage foreclosure issues in the state." He also asked the Task Force to create a model combining prevention and intervention strategies. Click here for an article on the Report and foreclosure rates in Ohio and nation-wide. Click here for another article that summarizes the report in more detail and provides information on the Report's dissenters. The Cincinnati Enquirer has also issued an article about the next steps for Ohio's legislature.

AG Marc Dann Sues Over Alleged Foreclosure Scams

Ohio Attorney General Marc Dann has brought lawsuits all over the state against 6 companies alleged to have engaged in foreclosure scams. The complaints allege that the companies, which include Richard Rinnix dba Pinnix Business Services of Shaker Heights and Carl Lavensky dba Home Restoration Services of Cleveland, contacted residents facing foreclosure and promised to arrest the process for a fee. The residents claim that the companies failed to stop the foreclosure process, and their homes nevertheless were foreclosed. Dann has sued for violations of the Ohio Consumer Sales Practices Act, the Telephone Solicitation Sales Act, the Home Solicitation Sales Act, the Credit Services Organization Act, and the Debt Adjustors Act. The Attorney General has offered tips on avoiding foreclosure scams.Click here for a Columbus news article on the suits.

Governor Redefines Property Rights on Cleveland's Lakefront

In connection with a Lake County Common Pleas case involving the Ohio Environmental Council, Ohio Lakefront Property Group, the Ohio Department of Natural Resources and others over property rights along the lakefront, Governor Strickland has issued a new policy statement that clarifies the dividing line between private and public property. Stating that he will recognize property lines contained within real property deeds, Stickland changed long-standing policy which divided private and public property on a historical high-water mark. Click here to read an article from the Dayton Daily News about the announcement.