What have you always wondered about the economy? Tell Us

Ohio helps homeowners avoid foreclosure

Steve Tripoli Apr 2, 2007
HTML EMBED:
COPY

Ohio helps homeowners avoid foreclosure

Steve Tripoli Apr 2, 2007
HTML EMBED:
COPY

TEXT OF STORY

SCOTT JAGOW: The state of Ohio isn’t waiting around for its people to lose their homes in foreclosure. Today, it launches a new program that’ll give some homeowners with unaffordable mortgages a second chance. State-backed bonds will provide a pool of refinancing money. Marketplace’s Steve Tripoli reports.


STEVE TRIPOLI: With the nation’s highest rate of homes in foreclosure, the worry in Ohio goes beyond individual losses.

Rita Parise of the Ohio Housing Finance Agency says communities across the state have high numbers of vacant homes already.

RITA PARISE: What’s going to happen to those homes? What’s going to become of those buildings? Are they just going to sit there or are they going to become places that are magnets for crime?

A cycle of community unraveling is feared.

Parise says Ohio’s high rate of risky subprime mortgages played a role.

PARISE: There is no question, in addition to having a very challenged economy, when you overlay that with very risky lending practices, that you increase the opportunities for failure.

The agency has set aside $100 million for these refinancing bonds, but Parise says officials are open to going higher.

Homeowners can apply starting today through the finance agency’s statewide lending partners.

I’m Steve Tripoli for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.