COLUMBUS, Ohio -- Ohio is part of a joint federal-state settlement of $25 billion with five of the nation's largest mortgage servicers over foreclosure abuses, fraud, and unacceptable mortgage practices. The Buckeye State's estimated share of the settlement is $335 million.
"This settlement will provide much-needed relief to Ohio homeowners and communities and help our state to recover from the destruction left behind from the mortgage financing crisis," said Mike DeWine, state attorney general, in a statement.
DeWine is scheduled to visit Youngstown today to discuss how his office will use the funds it received from the settlement.
The Ohio Attorney General's Office will receive an estimated $97 million to help with foreclosure prevention, getting rid of blighted properties, assisting families who have experienced or are on the brink of foreclosure, and investigating and prosecuting mortgage scam artists.
The settlement is with mortgage servicers Ally, Bank of America, Citi, JPMorganChase and Wells Fargo. Borrowers should contact these mortgage servicers to obtain more information about specific loan modification programs and whether they qualify under the terms of this agreement, DeWine said.
Ohio's estimated share of the settlement can be broken down into four major areas, his office said:
- Ohio borrowers will receive an estimated $102 million in benefits from loan term modifications and other direct relief.
- Ohio borrowers who lost their home to foreclosure from Jan. 1, 2008, through Dec. 11, 2011, and suffered servicing abuse would qualify for part of an estimated total of $44 million in cash payments.
- The value of refinanced loans to Ohio's "underwater" borrowers would be an estimated total of $90 million.
Ohio was particularly hard hit by the foreclosure crisis, and many communities are struggling with abandoned properties that detract from the value of existing housing.
New foreclosure filings in Ohio totaled 85,483 in 2010, with one foreclosure filing in 2010 for every 59 housing units, DeWine noted. Many Ohioans are also "under water," with nearly one in three mortgage holders owing more on their mortgage than their home's value.
Published by The Business Journal, Youngstown, Ohio.
