By: Dave Cliffe, Esq.
Despite stabilizing home prices and efforts to keep struggling debtors in their homes through modifications and other loss mitigation, the number of distressed homes in Ohio on the market continues to accumulate, albeit at a slower pace. While the national median value of a home declined in the first quarter of 2010 by 0.7%, median home prices in Ohio showed a marked recovery. In Akron, for example, median home prices nearly doubled to $95,000 from $50,100 for the first quarter of 2009. Prior to the recession, Akron experienced a median home price of $119,000 in 2007.
Economists, however, forecast continuing high inventories of foreclosed homes into the foreseeable future. Over two million American households are currently in foreclosure and one in eight homeowners seriously delinquent on their payments have already had their loan modified at least once. In greater Cincinnati, three houses were foreclosed in 2009 for every five houses sold, and six percent of homeowners were more than 90 days behind on their loan at the start of 2010. While most credit unions in Ohio enjoy lower default rates than their regional counterparts, loan modifications, deeds in lieu, short sales and other loss mitigation techniques will continue to grow in an effort to staunch the volume of nonperforming loans short of filing foreclosures.
If you have any questions concerning this matter, please contact Mr. Dave Cliffe, Esq. Dave is an associate in the Real Estate Default Group located in the Cincinnati office of Weltman, Weinberg & Reis Co., LPA. He can be reached at 513.333.4054 or via email at firstname.lastname@example.org.
Sources: The Wall Street Journal; Cincinnati Enquirer