Michael Schramm

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Beyond REO Properties Transferred at Extremely
Distressed Prices, Cuyhoga County 2005-2008

• Michael Schramm
• Center on Urban Poverty and Community Development
• Mandel School of Applied Social Sciences
• Case Western Reserve University
• schramm_at_case.edu
• http//neocando.case.edu
• http//povertycenter.case.edu

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Diversions from the Pathway to Foreclosure
Racial and geographic characteristics put certain
borrowers at HIGH RISK

• Foreclosure prevention

Borrower
Subprime Loan
Default

• Financial literacy
• Access to local banks
• Safe and sound products

• Targeted outreach

Foreclosure Filing

• Foreclosure intervention or mediation

Sheriff's Sale
REO
?
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Foreclosure Filings, Cuyahoga County
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Trend in Completed Foreclosures
Prepared by Center on Urban Poverty and
Community Development, Mandel School of Applied
Social Sciences, Case Western Reserve University.
Source NEO CANDO (http//neocando.case.edu),
Cuyahoga County Auditor
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Proportion of Sheriffs Deeds by Grantee
Category, 2000 vs. 2007
Prepared by Center on Urban Poverty and
Community Development, Mandel School of Applied
Social Sciences, Case Western Reserve University.
Source NEO CANDO (http//neocando.case.edu),
Cuyahoga County Auditor
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Sales Price Relative to Estimated Market Value
(in 2007 dollars), City of Cleveland
Year Sheriffs Sale
Prepared by Center on Urban Poverty and
Community Development, Mandel School of Applied
Social Sciences, Case Western Reserve University.
Source NEO CANDO (http//neocando.case.edu),
Cuyahoga County Auditor
Prepared by Center on Urban Poverty and
Community Development, Mandel School of Applied
Social Sciences, Case Western Reserve University.
Source NEO CANDO (http//neocando.case.edu),
Cuyahoga County Auditor
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Misc stuff on extremely distressed prices

• NPI lawsuit against Deutsche and Wells (declare
  public nuisance, abate nuisance, declare business
  practice a public nuisance)
• Toxic titles Banks walking away from
  foreclosures before taking to sale (decree of
  foreclosure granted by court, however no sale
  scheduled)

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Ways data are being used in community

• Foreclosure prevention/early warning Mortgages
  from Recorder flagged with High Cost and HUD
  subprime list lenders and First American Title
  adjustable rate data scrubbed against sheriff
  sales/water shutoffs
• Foreclosure intervention Foreclosure filings
  that have not yet gone to Sheriff sale (served
  through NEO CANDO)
• Foreclosure reclamation Sheriff sales that go
  to Banks/REO departments (served through NEO
  CANDO)
• Most of the data are now updated weekly

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Who is using these resources

• Cleveland Housing Court
• Cleveland Tenants Organization
• Community development corporations
• Foreclosure counseling agencies (ESOP, CHN, NHS)
• Neighborhood Progresss Strategic Investment
  Initiative (SII) (Opportunity Housing Foreclosure
  Pilot)

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Combining data usefully

• Data sources are disparate
• Parcel number is key
• However, more info is needed!
• Parcels can have multiple sheriff sales,
  foreclosure filings, loans, etc
• Originator, Plaintiff, Purchaser at sale are not
  the same entity
• Need to use dates and ownership periods to
  determine which foreclosure/sheriff sale goes
  with which loan
• County websites only allow search on a property
  or name, cannot do complex data queries