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Understanding Ohio Foreclosure

In a recent report from the Associated Press it stated that Ohio has now currently got the highest foreclosure rates in the whole of the USA. A foreclosure rate is a good indication of just how well a state's economy is doing. Certainly if you look at Ohio their economy is not exactly thriving at this present time. But just why have Ohio foreclosure rates dramatically risen compared to other states in the US?

Today the state of Ohio is faced with high unemployment and interest rates and so many of its homeowners are facing tough times trying to cope with their mortgage obligations. This is even more apparent with those borrowers who opted for adjustable rate rather than fixed rate mortgages. Plus apart from these problems borrowers are now faced with having to over come high credit card rates as well.

In order to help control the situation the Ohio Government are planning to pass new laws this year which are aimed at tightening regulations with regard to sub prime loans. This will then in turn allows borrowers to sue those lenders who have carried out fraudulent actions against them. Also a lot of lenders are now slashing their prices in order to decrease the number of foreclosures that are now occurring. There are some lenders who are now conducting public auctions as well as entering into listing contracts with various brokers to help sell their foreclosures in the future.

Certainly in other recent reports the number of foreclosures filed in the state of Ohio have more than doubled. Also the last step in foreclosing on homes as increased by 200% since the middle of the 1990's. In fact the rate of foreclosures in Ohio is now almost double the national average and these figures may well continue to rise.

In fact what has been discovered is that most of the home foreclosures occurring in Ohio are being traced back to sub prime loans. These are high interest rate mortgages being offered by lenders to those people who have an impaired credit rating. Certainly between 1997 and 2001 the number of Ohio foreclosures being made on sub prime loans more than quadrupled during this period compared to more traditional or prime loans. When further analysis was carried out of the 3 Ohio counties then it was found that people who had a sub prime mortgage were 3 times more likely to end up in a foreclosure situation compared to those with either prime or traditional loans.

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