Loan Mods Agreements by asf55964

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									      Foreclosure Prevention and Intervention In Cleveland
               Frank Ford, Sr. Vice President for Research and Development
                            Neighborhood Progress, Inc. (NPI)
                            COHHIO Conference Presentation
                                       April 21, 2009

1. The Foreclosure Landscape in Cleveland and Cuyahoga County


2. What’s Working Well
      Cuyahoga County Foreclosure Prevention Program – documented success by a 2- year
          evaluation (Cleveland State University)
              o 52% Success rate – 1 out of 2 who get counseling get their foreclosure stopped
                       ESOP’s agreements with 12 lenders
                       DTAC Funds
                       State Rescue Funds


3. What’s Not Working
      14,000 foreclosures are filed annually, but only 4,000 borrowers are making
          appointments
      Thus only 2,000 of 14,000 foreclosures are stopped
      We need to get better at moving people into our system, and/or
      We need stronger measures to induce lenders to do loan modification


4. What’s New and Innovative
      Case Western Reserve University – NEO CANDO data – identify “at-risk” borrowers

          County-Wide Initiative
              o Letters to at-risk borrowers from Treasurer Jim Rokakis
              o Followed by local meetings
              o Initial success very encouraging

          Pilot Project in Target Neighborhoods
               o Target areas = approx. 10 square block areas
               o A 3-pronged neighborhood stabilization approach in the target areas:
                         Renovation of vacant homes
                         Demolition of vacant homes on the same streets
                         Foreclosure prevention on the same streets
               o Partners in this initiative include Neighborhood Progress, Inc. (NPI), Cleveland
                   Housing Network, local CDCs, CWRU, ESOP, Ohio Housing Finance Agency.


5. Recent Trends
       Post foreclosure - bulk sales (dumping) of vacant property to flippers and investors
       Lenders filing foreclosure…. getting judgment…. but not requesting Sheriff Sale
       Lenders putting loan mods on hold pending the implementation of the Obama Plan



                  Frank Ford (216) 830-2770 x 218 fif@neighborhoodprogress.org

								
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