FindLaw KnowledgeBasePublished: 2012-04-10
The first six months of 2011 showed a reduction in home foreclosures across the United States in comparison to 2010. However, during the month of June, Ohio’s foreclosure filings increased by 3.5 percent from the previous month. While Ohio followed the national trend of a reduction in foreclosure filings in the first half of the year, the rest of the country — unlike Ohio — is still showing a decrease in filings.
According to RealtyTrac, every geographic area of Ohio has been impacted by “foreclosure, short sale, and price reduction trauma.” Of the cities hardest hit, Columbus is perhaps the most dire, with over 4,000 homes being foreclosed upon.
The increase in Ohio’s foreclosures, however, may be more of a sign that Ohio banks aren’t as far behind as those in other states across the country. RealtyTrac’s CEO blames processing delays for the reduction in foreclosures nationwide, believing that "processing and procedural delays are pushing foreclosures further and further out."
RealtyTrac estimates as many as one million foreclosures should have taken place in 2011, but are being delayed by the slow processes of the banks who own the houses. These foreclosures will likely occur in 2012, which experts believe may further depress a housing market that is already suffering.
So while it has appeared that foreclosures are going down in every state except Ohio, the reduction may only be an illusion, and when processing in the other states catches up to where it is supposed to be, the numbers of foreclosure nationwide will likely balloon up again.
During July, for every 608 housing units in Ohio, one received a foreclosure filing. Cuyohoga has the highest number of foreclosed homes on the market, standing at 1,039. More affluent areas are even feeling the heat, as Dublin — one of the more high-end neighborhoods — has 164 foreclosures available.
While banks appear to be solving some of the processing delay issues in Ohio, the rest of the country may be in for an even larger foreclosure crisis than anticipated when the banks in other states finally process the backlog.