by Marci Piltz
Record-Courier Reporter
The Portage County Bar Association recently discussed a new plan for combating the growing mortgage crisis.
To illustrate how the crisis has affected Portage County, Common Pleas Judge John Enlow pointed out that in 1995, the county saw 145 foreclosure cases. In 2000, that number rose to 346.
In 2006, it reached 725 and in 2007, 769 cases were foreclosures.
"It constitutes almost half of our civil docket," Enlow said. "It's a major problem here in Portage County."
"We have a crisis throughout the country, state and certainly the county," said Robert Berger, president of the group. "We want to give the citizens the opportunity to save their homes. If we can save a home, there is no better service to our community than that."
Berger pointed out how the growing problem affects not only those facing foreclosure, but also surrounding homeowners.
"Vacant homes are a blight to neighborhoods where they exist," Berger said.
"Not only is an unoccupied home a symbol of the loss of an American dream, but they cause added financial expense and stress to community law enforcement, taxes, utilities and safety."
Enlow explained that after Ohio Supreme Court Justice Thomas Moyer challenged the bar and courts to aid in the mortgage crisis, he got together to brainstorm ideas with Common Pleas Judge Laurie Pittman, retired judges Joseph Kainrad and Perry Dickinson, and magistrates Berger and Kent Graham.
THE SESSION resulted in a proposal that will require defendants in foreclosure cases to receive the option of free mediation with the mortgage holders.
The bar association's role, Enlow said, would be in providing volunteers to represent those defendants only for the mediation.
"I don't think the system will work with pro se defendants coming in for mediation; they need to be represented," Enlow said.
"We can then attempt to resolve the case, either through refinancing or with lenders forgiving some payments."
Enlow said the process is meant to be fair for all parties, and that's why a time limit of 10 days from the date of receiving a foreclosure notice was placed on the mediation request.
"The banks now appear to be much more amenable to settle than they were in the past," Enlow said. "Now they're getting a bunch of vacant houses and appear to be willing to negotiate more with the debtor to resolve this situation."
Enlow said sub-prime mortgages and the trend of mortgages to be held by holding companies is a large part of the problem. He hopes the new mediation program will be the start of a solution in Portage County.
"I don't know if it will work, but at least we can try," he said.
E-mail: mpiltz@recordpub.com
Telephone: 330-296-9657