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).