Build On This!

Senate Bill 204, introduced this week by Senator Robert Spada (R - 24th Dist.), intends to provide an expedited foreclosure procedure for lands that have had delinquent tax charges for a specified number of years and that are not occupied. The bill comes from a series of discussions between local and county leaders regarding the court clog problems associated with foreclosure actions. Recently in August, the Cuyahoga County Commissioners held an open meeting on this problem. A report was later issued that proposed short term and long term reform strategies, including recommendations similar to those proposed in Senate Bill 204. The report can be downloaded here.

Using the foreclosure process, municipalities can sometimes obtain vacant land for development projects from individuals who have seriously delinquent tax bills. Vacant land that would otherwise go unused, and is often an eye-sore for the community, can be acquired through the tax foreclosure process.

The Cleveland Plain Dealer reports that the Ohio House has passed a bill that would permit abandoned or blighted homes or businesses to be foreclosed upon in 90 to 180 days, as opposed to the current average of two years. The bill would allow county treasurers to process foreclosures of vacant, tax-delinquent properties through the Board of Revision, rather than the courts, which are frequently back-logged with foreclosure cases. Sixteen other states have enacted similar legislation. Some critics, however, contend that the bill would impact the due process rights of the property owners. The bill now heads to the Ohio Senate.

The Cleveland Plain Dealer reports that there has been a surge in federal foreclosure filings this year. In 2003, only eight foreclosure cases were filed in federal court. This year, the number has grown to more than 350, due to the continued log-jam of foreclosures in state court. It is reported that the federal foreclosures are typically resolved in just three to six months, which is far quicker than most state court foreclosures. In order to file a foreclosure in federal court, the debt must total at least $75,000 and the parties must be from two different states.