Cleveland Federal Reserve Bank Examines Benefits Of Fast-Track Foreclosure

more+
less-
more+
less-

On March 6, the Federal Reserve Bank of Cleveland published a staff commentary that examines how the implementation of a fast-track foreclosure process in Ohio and Pennsylvania would affect the housing markets in those states. The researchers explain that the current foreclosure laws in Ohio and Pennsylvania create “deadweight losses” for those state’s economies, i.e. costs without corresponding benefits, associated with vacant, foreclosed homes. Specifically, the researchers estimated for those two states: (i) the number of foreclosures that sit vacant; (ii) the amount of deadweight loss associated with vacant homes; and (iii) annual savings under a fast-tracking framework that eliminates deadweight losses. Their findings suggest that fast-tracking foreclosures would “shave between 8 and 43 days off the average duration” of vacant homes in Ohio, and between 9 and 20 days in Pennsylvania, eliminating an estimated $24 to $129 million of deadweight loss in Ohio, and $24 to $54 million in Pennsylvania.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×