Staving Off Foreclosure: Taking it to the Streets

As evident in the newspaper headlines – and maybe on your street – foreclosed homes seem to be everywhere these days. Circumstances for these foreclosures vary greatly, but many times it is due to the type of loan. For certain types of loans with adjustable rates, the homebuyer may find that they can not afford the payment when the rate adjusts (to a higher rate). One solution is to sell the home, but with today’s sluggish market the homeowner may not be able to sell their home quickly enough to escape foreclosure. This New York Times article describes one group in Baltimore’s Belair-Edison neighborhood that has taken to the streets, literally, to help prevent foreclosures. This group has been able to help homeowners retain their homes by renegotiating the terms of the mortgage with their lenders.

In Northeast Ohio, Neighborhood Housing Services of Greater Cleveland and many other organizations have set up programs to help those who may be having trouble making their house payments. Please click here to access their web site, and pass this information along to anyone that you know or suspect needs help.

$5,000: Grant Money Available

Grant money is available through various lenders from the Federal Home Loan Bank. These funds, which are distributed annually, can be used to assist buyers with down payment and/or closing costs on the purchase of their home. The income limits are $48,160 maximum for a 1-2 person household, and $55,384 for a 3+ person household. This is a great opportunity for homebuyers, and available for a limited time.

Contact Jim Finucan at First Place Bank for more information.

Ohio Rises

This article on Ohio.com cites a study that ranks Ohio as the 2nd second largest medical device producer in the Midwest. It also says that Ohio surpasses well regarded research centers such as North Carolina and Georgia. Ohio’s economy has been transitioning for many years now, and it has not been easy. It is encouraging to see that the state is making headway into growing industries and that maybe one day we will be able to rid ourselves of the rustbelt moniker.

Read the article here: http://www.ohio.com/news/top_stories/16588626.html

The Next Slum?

This article on The Atlantic.com suggests that some of the problems we are seeing in American suburbs may have come to light with the current foreclosure crisis, but may be rooted in changing demographics and attitudes towards how we live. An oversupply of large lot single family homes, increase in childless households, rising gasoline and natural gas prices, downsizing baby boomers and the increased desire to be able to walk to retail and entertainment is leading to a weakened suburban home market. The article is careful to suggest that all suburbs are not created equal and that the problems will not affect everyone across the board. Suburbs with town centers or thriving retail districts and public transit may benefit from this trend and also those with lifestyle centers that combine retail, office and residential. Central cities are also benefiting from the trend as evidenced by the increase of residential development in our urban centers across the country.

Read the article here.

Rest Belt No More? Focus on Midtown

Maybe the title given to our region, and specifically Ohio, doesn’t fit anymore. Ohio has won the Governor’s Cup Award presented by Site Selection Magazine for the second year in a row. What does this mean? The Governors Cup is awarded to the state with the most new and expanded corporate facilities. The facilities include manufacturing, offices, headquarters, distribution centers, research and development and mixed use. This is no small accomplishment when you look at our competitors in California, Texas, Florida who are bigger than Ohio and other southern states such as North Carolina and Georgia which are supposed to be so business friendly. Way to go Ohio!

Read the story: http://www.siteselection.com/


The Midtown neighborhood is one local area where business innovation is clearly evident. In partnership with the Manufacturing Advocacy and Growth Network (MAGNET), Midtown Cleveland Inc. was recently awarded a $20,000 grant by the Cuyahoga County Dept. of Development to develop a business plan for the Midtown Innovation Zone. Midtown is just one of three locations given this designation.

According to Midtown Cleveland, development totaled more than $23 million in 2007 in this neighborhood. Some of these developments include an expanded Asia Plaza at 2999 Payne Ave., the Baker Electric Building at 7100 Euclid Ave. (now a hub for tech and medical firms), and the Victory Building at 7012 Euclid Ave. (slated to become loft apartments).

More information available at www.midtowncleveland.org.

First Time Homebuyers: Why it Makes Sense to Buy

Despite the downturn in the housing market, it may still make sense for you to buy a home, especially if you are a first-time homebuyer. Here’s one reason why.

In addition to the fact that rates are still historically low, the Ohio Housing Finance Agency (OHFA) offers a special program that helps first-time homebuyers to get a mortgage. This program makes buying a home more affordable for qualifying homebuyers by offering 30-year, fixed-rate mortgage loans at a competitive interest rate.

The current interest rates are 5.5% for loans without down payment assistance, 5.90% for loans with 2% down payment assistance, and 7.5% for a loan with a 4% second mortgage.

In other words, if you are looking to buy a home and meet the income qualifications of the program, then you could not only find a good deal on a house – you can also save thousands of dollars by getting a better interest rate.

The OHFA program is also available with a conventional, 0% down payment. First time buyers are defined as anyone not owning or occupying their principal residence within the last three years. Target areas include most of the city of Cleveland. The income limits for buyers within the target areas for a 1 or 2 person family are $72,240, and for a 3 or more person family, the limits are $84,280. The income limits in the nontarget areas for a 1 or 2 person family are $60,200, and for a 3 or more person family they are $69,230.

For more information about the OHFA program, visit their website at
www.ohiohome.org.