Cleveland Law Library Weblog

Brookings Institution Issues Paper on Ohio's Foreclosure Crisis

The Brookings Institution has issued a paper entitled "Addressing Ohio's Foreclosure Crisis: Taking the Next Steps." The full text of this paper is available online and offers details on seven (7) action steps for Ohio state government, including getting borrowers more information about their options, creating land banking, and stabalizing neighborhoods. According to Kevin Leeson from the Cuyahoga County Planning Commission Weblog, Greater Ohio issued a draft of these recommendations in April.

Local Law Firm Sues Over Use of Its Name on the Internet

A large law firm based in Cleveland has sued BlockShopper.com (a source for online real estate news) for alleged trademark infringement over use of the law firm's name when two (2) firm lawyers bought expensive condos in Chicago, Illinois. According to a news article from Cleveland.com, the law firm does not want any connection to be made between its firm and the news source, whether by an online mention or a hyperlink to the firm's website. BlockShopper.com counters that it has the right to post public information under the 1st Amendment to the Constitution. Interestingly, the article indicates that Cuyahoga County real estate information will soon be available on the news source's web site. Both the Cuyahoga County Recorder and Auditor already provide detailed, real property information online.

CWRU Study Blames Subprime Loans for Cuyahoga Foreclosures

The Center on Urban Poverty and Community Development at Case Western Reserve University has just issued a study in which the results definitively link subprime loans to a large portion of the foreclosures in Cuyahoga County. Crain's reports that the study emphasizes how African Americans and the neighborhoods in which they live have been the worst hit and that 84% of the foreclosures in 2005 and 2006 were due to "high-cost subprime" loans. A summary of the study can be found at the Center's website, and the full report can be found on a Case blog site.

Cleveland Asks Cuyahoga CP Court to Stop Foreclosures

In a Council resolution passed yesterday, the City of Cleveland has asked the Cuyahoga County Common Pleas Court to stop all new and existing foreclosure actions where the debtors are still living in their homes. The CP Court recently posted documentation about implementing a local foreclosure mediation program that the Ohio Supreme and state agencies and organizations from around the state created (Save the Dream). Newsnet5.com reports that the City would like to buy some time to allow the Court to implement existing foreclosure programs and work with the City to institute additional programs to try and help debtors avoid foreclosure and keep their homes. According to the City Council website news page, 12 members of Council had already signed the resolution before last night's meeting. In 2006, the City started its 4-part program to try and resolve the foreclosure crisis and problems with abandoned homes, calling it Break the Cycle of Abandonment.

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.