Council passes foreclosure moratorium resolution

At the February 23, 2009 Council Meeting, Cleveland City Council passed a resolution urging the Ohio Senate and House of Representatives to support District 14 State Representative Mike Foley’s initiative for an emergency six month moratorium on foreclosures in Ohio , allowing for new foreclosure rules to be sought out and put into effect by lawmakers.

The Council resolution, co-sponsored by Council Members Jay Westbrook, Ward 18; Tony Brancatelli, Ward 12; Sabra Pierce Scott; Ward 8; and several of their colleagues, is consistent with Cleveland City Council’s Breaking the Cycle of Abandonment Initiative, which targets the foreclosure crisis through a four pronged approach: detection, prevention, maintenance and blight elimination and redevelopment.

The foreclosure moratorium is a vital step toward fighting foreclosures in Ohio , where 3.9 percent of mortgage holders are in foreclosure and 8.31 percent are behind on their payments.  The State of Ohio ranks above the national average for foreclosure and rank 7^th in the nation for foreclosure in 2008.  The moratorium is the initial step in a comprehensive approach to foreclosure prevention that will allow for the defense bar, courts and servicers to prepare for new rules, create a statewide foreclosure database and put additional ramifications to the foreclosure process in place.