Former Mayor Expresses Grave Concern For Foreclosure Crisis

December 27th, 2007

In a statement the former mayor of Cleveland, George Voinovich expressed his grave anguished concern for the ongoing foreclosure crisis in US. He is a senator from Ohio (R-Cleveland) and a former Governor.

He is especially concerned about the repercussions of the foreclosure crisis. Cleveland is his hometown and it is one of the worst affected zones. In his own locality three houses have been abandoned in front of his eyes – the owners have walked away leaving the properties to the mercy of vandals.

He had pitched in with others to revitalize the region with new sidewalks and saw to the repairs and maintenance works. For house construction he initiated a special tax abatement incentive. Now foreclosure clouds darken these same regions. One such locality is Slavic Village. It has the dubious distinction of ranking first in the foreclosure race. So on a very personal level he understands and realizes the sting of the foreclosure tornado that is sweeping through Ohio.

According to latest reports released by Mortgage Banker’s Association the foreclosure crisis is at its worst with Ohio being one of the hardest hit by it. It stands first with 3.72% of the loans slipping into foreclosures. The new law will allow three-year exception to the matter of debt forgiveness on house loans. There is also a clause that allows house owners to deduct mortgage insurance payments from taxable income.

An overwhelming majority by the House passed the second law, Expanding American Homeownership Act. By it Federal Housing Administration loan limits have been increased so that those facing foreclosures or resetting of interest rates will be easily able to refinance and move into safer harbours. The minor differences between the House and Senate bills will be ironed out and sent for the President’s signature in December.

The bill will give a fillip to the real estate market by bringing down the down payment condition from 3% to 1.5%. Consequently millions of Americans for the first time will get an opportunity to have a house of their own. This law also envisages a new counseling programme that will benefit those in the low and middle-income bracket.

Both pieces of legislation will be tools in the hand of the individual to preserve the sanctity and security of the home and the neighbourhood. There are still things to be done but a beginning has been made.