May 21, 2009 - 10:15 am
News Feed: Ohio

Ohio House OKs foreclosure prevention

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That is how Rep. Mike Foley, a Democrat from Cleveland, summed up why Ohio needs a six-month moratorium on foreclosures, which would apply as long as borrowers continue to make at least half of their monthly payment. His bill also would create a $750 fee on foreclosure filings to help fund foreclosure-prevention efforts and set up new licensing standards for loan servicers.

Most Republicans objected to House Bill 3, arguing that it would do more harm than good.

But the bill passed 54-43, with three Republicans joining all Democrats in support.

Foley said the moratorium would give borrowers more time to remedy their financial situations and perhaps to work out new loan terms.

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