a fast track foreclosure process would be lift neighborhood property values and reduce the backlog of notices in state court systems.
Chicago, IL (PRWEB) March 16, 2014
Peoples Home Equity was intrigued by the support of the Federal Reserve Bank of Ohio to push for a faster foreclosure process in America, and especially in Ohio.
A release issued by Ohio.com on March 8th, states that the Federal Reserve Bank of Ohio believes “mortgage lenders could save between $24 million and $129 million a year if Ohio fast-tracked foreclosures that involve vacant properties”. Peoples Home Equity, a mortgage lender with many locations in the Midwest was intrigued by this news.
The Federal Reserve Bank thinks a fast track foreclosure process would be lift neighborhood property values and reduce the backlog of notices in state court systems.
However, there has been strict criticism to this idea. Thomas Fitzpatrick IV, an economist for the Federal Reserve Bank of Cleveland says “The whole thing is tricky…both sides of the issue seem to agree when the home is empty, there’s no reason for it to sit in foreclosure.” He continues “But where there’s a lot more debate is exactly in how you identify when a property is empty, how it gets fast-tracked, what parts of it get fast-tracked.”
Peoples Home Equity highlights the fact that foreclosure rates across the country are declining. Indeed they are, Peoples Home Equity reported on February 2nd, that the national foreclosure rate declined for the 26th consecutive month in December 2013. However, the time it takes for the foreclosure process to complete itself is not declining. The lender finds Fitzpatick’s idea of having a single hearing foreclosure process interesting. Fitzpaterick’s idea is that if the homeowner does not respond or arrive to his or her foreclosure hearing, then the property should be immediately transferred to the lender so that it may be listing for sale much sooner than usual.
In recovering housing market that is beginning to see growth stalling due to lower inventories, a foreclosure tracker could be just what the market needs now, thinks Peoples Home Equity. Such new legislation would be beneficial in Ohio, an especially Florida, the state with the highest number of outstanding properties in delinquency at 11.2% in December 2013.
The pressure is on for states to continue to help resolve the housing crisis which lenders appreciate.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: (855)-897-0300