A hefty $75 million slice of Ohio’s mortgage settlement will go toward demolishing vacant homes in a state hit hard by the housing crisis.

Ohio Attorney General Mike DeWine announced the plan Thursday, shortly after the $26 billion settlement came down nationwide. Ohio will receive an estimated $335 million.

Much of that will contribute to loan modifications and foreclosed borrowers, but DeWine’s office will get the remaining $97 million.

DeWine said he will use $75 million to create a grant program for vacant home demolition, which he said drag down the rest of the market and “create a toxic breeding ground for crime.” About 100,000 properties need to be demolished, according to what DeWine’s office calls a conservative estimate.

About $20 million will fund a grant program for non-profit foreclosure assistance, while the AG’s office will hold onto another $2 million to back investigations into foreclosure and debt relief scams.

Ohio saw a 6.9% 90-day-plus delinquency rate on mortgage payments in December, according to CoreLogic (CLGX).

ascoggin@housingwire.com

About the Author

Most Popular Articles

Housing market flashing recession signal

The housing market is signaling there will be an economic recession by the 2020 election, according to Benn Steil, director of international economics at the Council on Foreign Relations.

Oct 11, 2019 By

Latest Articles

Foreclosure activity drops to lowest level since 2005

Foreclosure activity sank in the third quarter of 2019, dropping to the lowest level in nearly 15 years, according to the latest report from ATTOM Data Solutions. Foreclosure activity in the third quarter fell 19% from a year ago to the lowest level since the second quarter of 2005, a 13-year low.

Oct 16, 2019 By