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 7th 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.