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Midsummer measures for home buyers and new investors.

It’s midsummer in Ohio, a name which in the local language meant beautiful river’. The June festivals have all come to a close. The Ohio Housing Finance Agency has never been busier or more preoccupied with what has now become a priority; keeping Ohio residents in their homes as a solution to the severe pressure of rising bank foreclosures this state has experienced over the last ten years, filings numbers increasing sharply in 2006. Urban counties in particular now figure as the major suppliers to properties listed in the Ohio foreclosure listings. Delaware county has recorded filings increase of 50% in the last 3 years; Franklin, Pickaway and Cuyahoga counties have increasing problems, its a statewide issue.

The trend nationally applies in this mid western state; a significant number of properties making the filings count do not get to the Sheriff’s sale, as owners manage to refinance or sell at distressed prices aided by the Ohio Department of Development policies and unwilling to face foreclosure.

Its a buyers market for those who have prequalified prime financing and a line of credit available because of the significant equity they have built up in their home or other collateral property. There are several ways a prospective buyer can raise the cash needed at auction to support the winning bid; the line of credit and home equity loan (second mortgage) being the best cost choices, there are hard money loans, and other private investor sources including raising a pool of cash from family and friends, a source of bridging finance that should not be overlooked.

Best to remember that in Ohio State the foreclosure laws prohibit the sale at auction of a property for less than 2/3 of the independent appraisal required at the sale. As with all foreclosure auctions you will also be bidding against the lender.

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