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DannLaw Update on Covid-19 CARES Act passed by Congress and signed by the President

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Marc Dann - Marc Dann Consumer Fraud & Foreclosure Defense AttorneyI’ve been involved in politics and government for over 40 years and I can say  definitively that I have not seen legislation that offers as much direct and immediate relief to distressed consumers, borrowers, small business owners and tenants as the Covid-19 stimulus package, known as the CARES Act that Congress passed on Friday, March 27.  You can read an analysis of the bill here. You can read the legislation in its entirety here.

While I’m generally pleased with the CARES Act, I do have two concerns:

First, I believe government, mortgage loan servicers and banks may make significant mistakes and cause undue delays as they implement the legislation, and, second, I worry that many mortgage, consumer, and student loan borrowers may not receive the assistance they will need to weather the Covid-19 emergency.

Here’s the bad news…

The Acts’ protections only apply to federally-backed mortgage loans.

If  you are among the more than 50% of homeowners whose mortgage is “federally related” i.e. owned by Fannie Mae, Freddie Mac or insured by the FHA, VA and the Department of Agriculture help, which I’ll describe later, is on the way. But many borrowers, including those who have recently been in default in recent years, are not eligible for relief because their loans are not owned by the listed entities. That means it’s very important to find out who owns your loan. We can help you find out or you can send a “Request for Information to your servicer. Many loans that were formerly owned by Fannie Mae and Freddie Mac or insured by the FHA have been resold. In many cases hedge funds that are not obligated to offer the forbearance of payments included in the bill now hold own the loans.

The Act does not address Private Student Loans.

If your loan is not owned by the U.S. Department of Education then you are not eligible for the 6-month, consequence-free payment holiday included in the Act. While some courts in some counties have placed stays on some collection activity, lawsuits and other collection actions involving private student loans may proceed.

The Act’s eviction protections for renters apply to a very small category of landlords

Landlords who have loans from Fannie Mae or Freddie Mac and who seek mortgage assistance are prohibited from evicting tenants. Unfortunately, the vast majority of landlords do not fall into this category.

It is important to note that the members of Congress did not carve out these exceptions because they don’t care about the people they impact. The exceptions exist because the federal government generally lacks the power to control the private creditors involved.   

Now for the good news—and there’s lots of it…

Mortgages:

Mortgage Servicers for Federally Backed Mortgages must provide a 60-day suspension of payment obligations to borrowers who claim they are unable to apy because they have been impacted they Covid-19 crisis.

Mortgage Servicers for Federally Backed Mortgages are required to agree to forbearance of up to 12 months or longer without adding additional fees, penalties or interest other than that contemplated by the original note. It is important to note, however, that the Act does not prohibit negative credit reporting during the forbearance period.

Servicers of Federally Backed Mortgages are prohibited from moving forward to foreclose or evicting anyone from now until May 17, 2020.

Student Loans:

All Payments on Federal student loans will be suspended for six months. More significantly, no interest, penalties, or fees will accrue during this time period.  The non-payments will be treated as payments for the purpose of forgiveness, loan rehabilitation or public service loan forgiveness programs.  In addition, the Act contains a very consumer-friendly provision that requires lenders to report the borrower as paying currently to credit reporting agencies. Remember these provision DO NOT apply to Private Student Loans.

Unemployment Compensation:

The Act adds $600 per week in federal unemployment benefits to the amount paid by each state. For many workers this means unemployment checks will nearly equal their normal wage. You must still apply through your state’s unemployment system.

Small Business Owners:

Small business owners can apply to banks or other SBS-approved lenders for loans to cover eight to ten weeks of expenses including payroll, rent, health insurance, sick pay and other day to day costs. The loan is forgivable if the business keeps its employees on the payroll during the period. Banks will originate and service the loans and the Government will subsidize them through the SBA. While $355 billion has been appropriated, based on my discussions with clients, the money may run out so we suggest that small business owners apply right away.

Bankruptcy Changes:

The following changes to the Bankruptcy Code will be in effect for the next 12 months:

The stimulus checks Americans receive will not be considered income for purposes of filing a Bankruptcy.

For those already in a confirmed Chapter 13 Plan, the Bankruptcy Code has been amended to allow for Debtor(s) to file a Motion to Modify their Chapter 13 based on financial issues caused by COVID to extend the term of their plan for up to 84 months/seven years.

The definition of Debtor for purposes of filing Subchapter V of Chapter 11 also known as the Small Business Reorganization Act has been expanded to include all debtors, not just those defined as a small business:

The following change to the Bankruptcy Code is permanent:

The debt limit for cases eligible to file under the new Small Business Reorganization Act under Chapter 11 (a.k.a. SBRA or Subchapter V) has been increased to $7,500.000.00

See Previous updates on this crisis and its impact on consumers here

For more information contact intake@dannlaw.com or call 877-475-8100

Marc Dann

mdann@dannlaw.com

Important COVID-19 Crisis Update on Mortgages and Student Loans

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Marc Dann - Marc Dann Consumer Fraud & Foreclosure Defense AttorneyWe hope that you, your family and friends are safe and in good health. We, like most of you who live in New Jersey and Ohio have been ordered to stay home for a while. We want to assure you that we are here to help you despite the Shelter-in-Place and Stay at Home orders. You may reach us at any time by calling 877-475-8100, emailing us at intake@dannlaw.com, or calling Marc Dann’s cell phone: 330-651-3131.

Like us, you probably know one of the hundreds of thousands of people who have lost their jobs or been forced to close their small business over the past two weeks. And it’s even more likely that you or someone you know has seen your retirement savings take a major hit as stocks have lost trillions of dollars in value.

The airwaves, print media, and internet have been flooded with conflicting reports about state and federal proposals designed to help Americans deal with the financial challenges caused by the Covid-19 crisis. Some proposals have been enacted, some are awaiting congressional or state legislative approval, and others aren’t detailed enough to discuss at this time. We know it can all be confusing for people who simply want to earn a living, feed their families, and pay their bills.

No one knows how long the pandemic or the financial devastation associated with the measures taken to deal with it will last. With that in mind, we strongly advise that you Proceed with Caution when dealing with your mortgage servicer, student loan servicer, and other creditors. While FHA, Fannie Mae, and Freddie Mac have issued directives that make many mortgage loans eligible for 12 months of forbearance, delaying payments can throw your escrow out of balance, cause interest and escrow advances to be turned into interest-bearing principal when a loan is modified, or make accounting more complicated.

And while it is critically important for you to communicate with your creditors if you are having a problem paying your debts doing so is becoming increasingly difficult as the employees who answer the phones at banks and lenders begin working from home.

That’s why we want to emphasize that we are just a phone call away and available to help you make decisions that could impact your credit and your financial security for years to come. Please do not hesitate to contact us—your future may depend on it.

For right now: If you can pay your bills, including your mortgage and student loans, do so.  If you are unable to pay, communicate with your loan servicer or creditor in writing if you can. If you must speak with them by phone, record the conversation. Advise the creditor of your situation BUT DO NOT AGREE TO A REMEDY. As we noted above, Congress and state legislatures are still considering proposals that may create favorable ways for you to deal with your obligations. Don’t repeat the mistakes people made during the collapse of the housing market. Many of our clients agreed to modify their loans during the early stage of recession and were unable to take advantage of more favorable remedies that became available later.

With that warning in mind, here’s what we know for sure as of today:

Mortgages

  1. New Jersey Governor Murphy has ordered that no one can be removed from their home pursuant to an eviction or mortgage foreclosure proceeding during a 60 day period beginning March 19 and ending May 18. Governor Murphy has also asked financial institutions including banks and mortgage servicers to “implement a process” to work with homeowners although they are not mandated to do so. It is also important to note that this order also does not prevent banks and servicers from filing and otherwise pursuing foreclosure actions in the state. But if you have a mortgage insured by the FHA or owned by Fannie Mae and Freddie Mac, FHFA and HUD are suspending ALL foreclosures and evictions for at least 60 days.
  2. Each county in the state is taking a different approach regarding sheriff’s sales. For example, Bergen County has cancelled sales for March 27 and April 3 but has not indicated what will happen after April 3. Middlesex County is tentatively scheduled to resume sheriff’s sales on April 1. Meanwhile, Essex County, Passaic County, and Hudson County have suspended their sales until further notice. So, if your home is scheduled for a sheriff’s sale you should immediately double check with your county’s sheriff’s office and ask if it will proceed or be delayed.
  3. Ohio has not implemented a statewide rule regarding foreclosures, but sales have been stayed for 60 days in Cuyahoga, Hamilton and Franklin counties.  Most courts have either continued or stayed cases or converted all court appearances to video conferences. If you have a foreclosure pending please keep in close contact with your lawyer.
  4. Here are links to all of the entities that are offering forbearance. Remember FHA, Fannie and Freddie sold off many of the their loans so even if your loan at one time was owned by Fannie or Freddie or insured by FHA these provisions may not apply to you.

Fannie Mae: https://www.fanniemae.com/portal/media/corporate-news/2020/covid-homeowner-assistance-options-7000.html

Freddie Mac: http://www.freddiemac.com/about/covid-19.html

FHA: https://www.hud.gov/program_offices/public_indian_housing/covid_19_resources

Federal Student Loans

  1. If you have a federal student loan, not a private loan, contact your loan servicer and request that you be allowed to suspend payments for 60 days. Interest will also be suspended for that time period. We again strongly recommend you communicate with your servicer in writing so that you have proof of what they promised you and you promised them. If you must communicate by phone, both Ohio and New Jersey are “one party consent” states which means you have the right to record your conversation with the service. We strongly urge you to do so.
  2. The Bad News on Federal Student Loans: Federal Student loan servicers may still garnish your wages, offset your social security payments, and take your upcoming tax return.
  3. You can find up to date information regarding federal student loans here.
  4. The Really Bad News on Private Student Loans If you have a private student loan you are out of luck at the moment. There are no programs or proposals to protect you if you are unable to make your payments. There is nothing to stop lenders from filing and pursuing lawsuits against debtors who are in arrears.

COVID-19 Update, March 20, 2020

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Marc Dann - Marc Dann Consumer Fraud & Foreclosure Defense AttorneyWe don’t mean to be a pest with these updates, but information about mortgage and consumer issues that may impact our clients, former clients and friends is flowing at a fast and furious pace.

Before outlining the evolving responses to the financial hardship caused by the emergency, I want to take a moment to discuss the long-term effects of this emergency. The fact is the job losses, foreclosures, repossessions, and other types of financial stress caused by the crisis will negatively impact the health of millions of Americans years after the threat of contracting Covid-19 fades.

I know this true from both personal and professional experience. On the personal side, my father committed suicide after losing most of his retirement savings when the tech bubble burst in 2000. From a professional perspective, I worked alongside thousands of clients, including many of you, who faced serious financial, personal, and health challenges in the wake of the 2008 collapse of the housing market. I’m proud that we were able to overcome those challenges and forge a path back to financial security.

But as we confront the possibility that one in five Americans will be out of work for an extended period of time, the potential failure of millions of businesses, and growing insecurity about shrinking retirement savings, we must acknowledge the need to take steps to prevent a pandemic of depression, suicide and addiction among our family, friends and neighbors.

When I look back at the courage and optimism that enabled our clients to triumph over adversity in the past, I am confident we all have the capacity to find humor and optimism in situations that appear dire and hopeless. I want you to know that we are here to help and that it will be our privilege to serve you in the weeks, months, and years ahead.

But remember, we can’t help if you don’t call.

It’s especially important for you to contact us now because some information you may be receiving via traditional or social media is inaccurate or incomplete. We are at work and available to answer questions or help at 877-475-8100 or intake@dannlaw.com. You are also welcome to call Marc’s cellphone: 330-651-3131

Information regarding Foreclosure Stays or Prohibitions

What is True:

Today the Federal Government announced that no foreclosures will proceed in the next 60 days on loans that are insured by the Federal Housing Administration (FHA) or that are owned by Freddie Mac or Fannie Mae. While that covers a lot of loans most people don’t know the name of the owner or insurer of their loan, they only know the name of the company that collects the payments or servicer of their loan.

Further complicating the implications of this order is the fact that in the last few years the FHA, Fannie and Freddie have sold off hundreds of thousands of loans that they formerly insured or owned and many of those homeowners might incorrectly think that this particular decision applies to their loans. If you don’t know who owns your loan and you are facing foreclosure in the next 60 days reach out to us or your loan servicer to find out for sure.

In addition, some Ohio Counties (including two of the largest Cuyahoga and Hamilton) and some states (including New Jersey) have passed laws or issued court orders staying foreclosure cases, sheriff’s sales and foreclosure related evictions for 60 days. These orders apply to all loans. Ohio Chief Justice Maureen O’Connor is scheduled to speak at the Governor’s news conference at 2 p.m. today and she may share further news for Ohioans facing foreclosure.

Also, Ohio Senator Sherrod Brown has introduced legislation under the Real Estate Settlement Procedures Act to prohibit all foreclosure activity nationwide, to allow up to a six-month forbearance (not forgiveness) followed by an extension of the loan and requiring servicers to evaluate the loan for a modification for those impacted. That law has not passed and has a long road ahead in the U.S. Congress.

If you have a pending foreclosure case anywhere, call us to verify the status of your individual case and discuss strategy for how to most effectively move forward toward a positive resolution for you and your family.

What is not true: 

No order or law that we are aware of (even those proposals discussed above) relieves mortgage loan borrowers, student loan borrowers or other consumer debtors from paying the debts or the payments that are due this month or in the future. Our advice about how to approach the situation if you can’t make payments is here. This patchwork of rules by state and local governments and courts will create an accounting nightmare as we recover from this crisis. Among other problems, a suspension of payments would throw escrow calculations off balance and cause increases in monthly payments down the road.  Pay close attention to your mortgage statements in the coming days and months and reach out to us for help or to your mortgage servicer in writing if you have questions or concerns.

Nothing in the law that we are aware of prohibits mortgage companies or other creditors from reporting missed payments, even those that may be allowed by law. Once again, Sherrod Brown has proposed a bill to put a moratorium on credit reporting but that bill is a long way from law.

The bottom line is: if you can pay your mortgage and other obligations try to do so. Many of our clients have very favorably modified loans with payments that are affordable. Those arrangements can be upended if escrow increases because of missed payments or the loan has to be modified again. Many others have worked hard after foreclosure or bankruptcy to raise their credit score. We all have to balance payment priorities at this time and we just wanted to make sure that you were as informed as possible.

Paid Sick Days are only for Some Workers

 What is True:

 A law has been passed to require companies to provide paid sick leave related to the COVID-19 virus to certain workers but millions of workers are exempted including those who work for companies with more than 500 employees and some companies with less than 50 employees. Here is a good summary of who gets it. Employers can recover costs later through tax credits.

More good news:

Fifth Third Bank will not foreclose, evict or repossess cars for 60 days. Read about it here.

No Utility Shutoffs in Ohio. Cleveland.com report. But remember you still owe the bill and at some point it is going to have to be paid.

An Update from DannLaw on Coronavirus and Emergency Legal Issues

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Marc Dann - Marc Dann Consumer Fraud & Foreclosure Defense AttorneyAn important message from Marc Dann:

We are open and reachable during normal business hours and beyond and you can reach me on my cell phone at 330-651-3131. Rest assured that I will either be at home or at the office because like you, I’m really not allowed to go anywhere else.  We will be happy to answer any questions you have about your existing case(s) as well as the many coronavirus-related legal issues our friends and clients are facing on an almost hourly basis. If you need to speak to one of our attorneys please use our toll-free line 877-475-8100. We answer 24 hours a day.

Here are several things to remember:

  1.  We can arrange for phone and video conferences for new and existing clients.
  2. You can make retainer payments online. If you are a client of our Ohio office click here: DannLaw Payment Link  Clients of our New Jersey office click here: DannLaw NJ Payment Link
  3. If you are experiencing additional financial hardship related to the COVID-19 emergency and need to make financial arrangements please contact us right away.
  4. We are constantly monitoring legal developments related to the emergency that are important to consumers, borrowers, homeowners, and small businesses. If you have questions or need information please contact us and we will try to find answers for you.
  5. If you are unable to make your mortgage payment or pay other consumer debts please contact us so we can discuss options and alternative strategies. We can’t help you unless and until you contact us.
  6. If you are in Chapter 13 Bankruptcy and are unable to make a Chapter 13 Payment, please contact us ASAP so we can discuss options and alternative strategies.  Working preemptively with the Chapter 13 Trustee and the Court regarding payments will help avoid unnecessary Motions to Dismiss.
  7. For our clients in Chapter 13 Bankruptcy and all other clients: the COVID-19 emergency has not changed deadlines for filing tax returns.

Here are some other important developments:

  1. Ohioans can now apply for and receive unemployment benefits immediately if they are laid off due to the emergency. Click here for information about how to apply online for unemployment benefits.
  2. SBA Loans should be available to Small Business Owners facing financial challenges from the current situation. Click here to learn more.
  3. Judge Brendan Sheehan in Cuyahoga County has issued a 60 day stay on foreclosure sales and on the prosecution of foreclosure cases. See the details here. Please note that all deadlines that apply to those in foreclosure or who are working to resolve disputes with their mortgage companies remain in effect. Rules and regulations have not been adjusted. Lawsuits that have been filed and served must be answered. Any matter that needs to be objected to or appealed would not be covered by this order.  This is good news but please keep in close touch with us about your existing case or any issues you might learn about relating to your mortgage. If you have questions, please email Attorney Whitney Kaster at wkaster@dannlaw.com. 
  4. While Cuyahoga County has stayed these cases, many other courts in Ohio have not. One of our Partners, Brian Flick in his role as Ohio Chairperson of the National Association of Consumer Attorneys wrote to Chief Justice Maureen O’Connor on March 16, 2020 asking that she issue guidance to local courts to stay all non-essential Debt Collection and Eviction Cases and to postpone all pending Sheriff’s sales until the State of Emergency Declaration is terminated. If you are in a County that has not adopted emergency procedures staying civil cases, please email bflick@dannlaw.com  He and NACA are committed to ensuring access and due process to all consumers during the pandemic.
  5. Both the Hamilton County Municipal Court and the Court of Common Pleas have issued a 30-day stay of all civil and criminal trials in the Courts (with limited exceptions).  See the details here. This is good news but please keep in close touch with us about an existing case or any issues you may learn of related to your case.  If you have questions, please email Brian Flick at bflick@dannlaw.com.
  6. The New Jersey Legislature has enacted statewide mortgage relief including forbearance of payments and a stay on foreclosure proceedings. Here is what we know about it. The same disclaimer applies here:  Please note that all deadlines that apply to those in foreclosure or who are working to resolve disputes with their mortgage companies remain in effect. Rules and regulations have not been adjusted. Lawsuits that have been filed and served must be answered. Any matter that needs to be objected to or appealed is not covered by this order. Javier Merino stands ready to answer all of your New Jersey Consumer Law Questions jmerino@dannlaw.com
  7. My earlier post on how to protect yourself if you experience financial hardship is here.
  8. The Ohio State Bar has advice on what your employer may and may not do.
  9. The Veterans Administration has directed servicers to not report to credit agencies or assess late fees to borrowers who are late as a result of the virus.For more information on that contact bbehrens@dannlaw.com

 

As always we stand ready to help our friends, neighbors and clients as this crisis unfolds. Never hesitate to call 877-475-8100 or email us at intake@dannlaw.com or mdann@dannlaw.com.

Lessons learned in the last recession could help working families deal with the coronavirus crisis

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Marc Dann - Marc Dann Consumer Fraud & Foreclosure Defense AttorneyWhen I woke up this morning to another stream of stories about the Coronavirus, I wasn’t worried about the impact the growing crisis was having on big banks or the stock market—as has been proved time and again, they’ll recover or be bailed out, or both.

Instead, I was concerned about the people reporters obsessed with Wall Street losses ignore:  people like the guy who was counting on catching up on his Christmas credit card charges by selling hot dogs at the NCAA tournament at Rocket Mortgage Fieldhouse, the Cleveland cop banking on overtime earned by working the St.Patricks Day parade to pay his daughter’s college tuition, and the self-employed vendors who eke out a living selling jewelry and crafts at kiosks during the Cleveland International Film Festival. I’m worried about them because there’s no bailout in the offing for the millions of retail clerks, waitresses, Uber drivers, and other hourly workers who lose billions of dollars in wages as the rest of us follow orders to engage in “social distancing.”

Along with living paycheck to paycheck, many of the workers I’ve described have no or inadequate health insurance. They don’t have paid sick leave. And many are saddled with crushing student loan debt, mortgage payments that consume nearly half their gross income, or are renters who will be evicted quickly if they miss their monthly rent payments.

At DannLaw, our experience helping consumers and homeowners recover from the Great Recession gives us a unique perspective and valuable insight on how people can avoid financial disaster as the coronavirus crisis spreads and what government should do to support working families.

Here is our best advice for individuals and families:

  1. Don’t put your head in the sand. As soon as you know you may not be able to pay one, some or all your bills contact your creditors, explain your situation, and ask for forbearance or other adjustments to your account. It is important for you to communicate with mortgage servicers, credit card companies, landlords and other creditors via letter or email. Make sure to keep copies of all correspondence because it will serve as a  permanent record of what you promise them and what they promise you.
  2. Closely review automatic payments being charged to your credit cards or bank accounts. Avoid costly bank fees and overdraft overcharges by canceling payments you aren’t sure you can make. One overdraft can cause a cascade of bounced checks resulting in hundreds of dollars in NSF charges and late fees that could have been avoided
  3. Don’t try to borrow your way out of the situation. You’re going to see lots of solicitations from “debt consolidation” companies and payday lenders. While these loans may provide short-term relief, their steep interest rates will cause long-term problems that will jeopardize your financial future. Working with existing creditors is a much more sensible and safe approach.
  4. Do not ignore anything delivered to you in person or by regular or certified mail from a court. If you do not respond to a summons or hearing notice you will soon be subject to wage garnishments, bank account attachments or judgment liens. Call a lawyer if you are sued even if you think you can’t afford one because there are often legal defenses to collection actions, evictions and foreclosures. Our firm and many others will provide free phone or in-person consultations. If an attorney finds that fee-shifting or counterclaims exist in your situation they may represent you on a contingency fee basis.
  5. Keep an eye on your credit report. Credit Karma and other free services will notify you immediately if a creditor reports you as delinquent or puts a claim in collection. You may be able to mitigate damage to your credit score by communicating with the creditor or placing an explanation of your situation in your credit report. Contact a lawyer right away if you find that someone is entering inaccurate information in your report. You may be entitled to protection and compensation under Federal Law.
  6. Avoid withdrawing funds from your retirement accounts. Withdrawals will cause tax consequences that you may regret the following year and they are often the only assets people have that are exempt from collection efforts.

Now let’s turn to what government can do to support and protect hourly and self-employed workers:

  1. Suspend the obligation to pay government student loans. Offer immediate forbearance with no accruing interest. This will provide immediate relief to borrowers who are not working or whose income has been reduced. In addition, it will boost the economy by giving people who are still working additional disposable income.  The Secretary of Education and the President could issue forbearance with the stroke of a pen.
  2. Place a moratorium on negative credit reporting for the duration of the pandemic and for a six-month period after the crisis ends. This will enable borrowers who were not in default before the crisis to maintain their positive credit rating.
  3. Suspend tuition payments to state community colleges and universities. Dorm closings are costing Ohio families millions of dollars. Suspending tuitions payments during the crisis will give many parents and self-supporting students the opportunity to stabilize their finances during the crisis. Once the emergency ends payments could be spread out over the years a student remains enrolled or be extended until after graduation.
  4. Allow Fannie Mae Freddie Mac, FHA and VA to suspend their rules governing how often and how many times a mortgage modification may be granted. This move, coupled with forbearance upon proof of reduction or elimination of unemployment will help working people hold onto their homes during this difficult time.
  5. Allow student loans and home mortgages to be modified in bankruptcy. This reform is long overdue and will provide both creditors and debtors with an equitable way to determine how much a borrower can pay while maintaining stable housing and jobs.
  6. Expand unemployment insurance to include sick days related to the outbreak and waive the one week waiting period for the duration of the crisis.

We hope our insight and advice is helpful to consumers and will spur positive action among policymakers at the state and federal level.

Be well and remember, wash your hands—often.

New report confirms serious problems with Board of Revisions seizures, homeowners and local governments have lost millions in value and revenue

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Elliot Feltner lost thousands of dollars in value when the Cuyahoga County Board of Revision seized his property.

The Ohio Center for Investigative Journalism just published an article that documents the severe problems afflicting Ohio’s Board of Revision (BOR) foreclosure process. According to the story, published in the Center’s “Eye On Ohio” investigative reporting series, the BOR foreclosures have cost local governments, homeowners, and banks at least $91 million over the past 13 years. The process, created by the Ohio General Assembly in 2006, enables BORs to cease properties without going to court. In most cases, the properties are then deeded over to county land banks.

DannLaw founder and former Ohio Attorney General Marc Dann who has filed suit on behalf of a number of property owners victimized by the process, says the law, not the members of the BORs utilizing it are at fault. “BOR members are working hard to improve their communities, but the law they’re using is unconstitutional,” he said. “People across the state, banks, and local governments are losing millions. This simply can’t be allowed to continue.”

One of Dann’s clients, Elliot Feltner, is profiled in the story. After dealing with a number of personal tragedies, including the death of this father-in-law and wife, Mr. Feltner learned that a number of tax liens had been filed against the auto body shop he inherited after they passed away. He didn’t have the money to pay the back taxes so he put the building on the market and was going to use the proceeds from the sale to pay off the liens. There was only one problem: he didn’t own the building. To his complete surprise, the BOR had foreclosed on the property, which was valued at more than $140,000, and given it to a private company. If Mr. Feltner had been able to sell the building local governmental entities, including the county and the local school district, would have received nearly $70,000 in taxes and interest. Instead, they and Mr. Feltner got nothing.

DannLaw sued Cuyahoga County’s Board of Revision on Mr. Feltner’s behalf. The Ohio Supreme Court is expected to hand down a ruling soon.

Unfortunately, what happened to Mr. Feltner is far from an isolated incident. Research by DannLaw and the reporters who wrote the “Eye on Ohio” story revealed that thousands of Ohioans have been victimized by the BOR process. You can read the report here.

If you or someone you know has lost a residential or business property to a BOR foreclosure, we urge you to call DannLaw at 216-373-0539 to arrange a no-cost consultation today. We are eager to evaluate your situation and, if appropriate, take legal action to help you secure justice and just compensation for your loss.