Mortgage, foreclosure Gongwer October 31, 2013 HB 223 FORECLOSURE PROCESS (Grossman, C., Curtin, M.) To expedite the foreclosure and transfer of unoccupied, blighted parcels and certain abandoned properties and to make other changes relative to residential foreclosure actions. (CONTINUED-SUBSTITUTE; 1st Hearing-Sponsor-Possible substitute) Rep. Grossman told the panel the bill seeks to expedite and improve the foreclosure process involving blighted and nuisance properties. Abandoned properties, she said, can be like a cancer on a neighborhood, driving down property values and forcing people to move. Ms. Grossman noted that abandoned properties are an issue across Ohio, but said they tend to be a bigger problem in metropolitan areas. She said the current foreclosure process for those properties takes too long, and is too complicated. Among other things, she said the bill more clearly defines residential mortgage loans and improves a lenders ability to secure property after foreclosures. She said the measure also eliminates the minimum bid threshold for impacted properties if a first auction fails to produce the current required minimum bid. She said some abandoned properties are in such bad shape, there is no way an auction will generate a bid that reaches the minimum level. Ms. Grossman clarified that the bill only applies to abandoned properties, and excludes manufactured homes. Rep. Curtin said the bill is based on a framework offered by Columbus City Attorney Rick Pfeiffer and addresses two of five core recommendations made by the Cleveland Federal Reserve System. He said eliminating the minimum bid requirement is a more market-friendly approach where bidders can determine the value of a property. Mr. Curtin added that the bill sunsets at the end of 2019 to give lawmakers an opportunity to determine how the changes have worked.
Posted on: Thu, 31 Oct 2013 13:05:52 +0000
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