Yesterday, Ohio Governor Ted Strickland established the Foreclosure Prevention Task Force, a group that will "provide a unified response to improve prevention methods and manage foreclosure issues in the state." I'm not really sure what all that means, but golly, it sure sounds dandy.

“I am directing my administration to take action to help reduce and prevent foreclosures,” Strickland said. “This Foreclosure Prevention Task Force brings together representatives from all affected entities to address this important issue.” The governor, in a partnership with the Ohio Department of Development, the Ohio Department of Commerce and the Ohio Housing Finance Agency, has charged the Foreclosure Prevention Task Force with creating the appropriate model of foreclosure prevention, intervention and strategies to assist distressed mortgages. ... The task force members will work on outreach and education for home-buyers and those facing foreclosure, proactive intervention to help homeowners facing imminent foreclosure, and financial resources and strategies to work out distressed mortgages to keep people in their homes. In addition, OHFA will offer a refinancing program beginning April 1 that will make available an affordable, fixed-rate financing alternative to homeowners whose current loan is inappropriate for their financial circumstances. This program will be backed by the sale of taxable bonds.

That seems like a good plan. I have to wonder if they have included any representatives from the title industry in their plans. It seems that a big part of the problems is that most of these homeowners don't understand the terms of the loans they have signed, or worse yet, they just didn't care. A consumer education program is definitely a good idea, but I think that the consumers need a better explanation of the loan docs at their closings.

I can see the advantages of requiring the representation of an attorney, as some states do. It is not the place of a title agent, or "signing agent," to give legal advise and it seems that is what is desperately needed in these complex transactions. Adding more disclosures surely doesn't work - its just more paperwork that the borrowers don't understand. They need someone there representing their interests to help guide them through the process.

In any event, I am glad to see that foreclosure issues are on the agenda of the new governor and his staff. Ohio has one of the highest foreclosure rates in the country and without a plan to deal with the crisis, it will certainly have a devastating impact on our economy.

About the author:

Robert A. Franco has been in the title industry for nearly 15 years in the state of Ohio. The owner of VersaTitle, a full service abstracting and title company, and the founder and president of Source of Title, a Web site devoted to providing media and marketing services to the title industry, Franco has dedicated much of his professional career to furthering the role and significance of title examiners in the title insurance industry.