Success of fast-track option for vacant foreclosures depends on how it’s implemented: Cleveland Fed

Ohio law has been amended to allow for speedier foreclosures of so-called zombie properties, and Forefront asks Cleveland Fed community development experts if the new option will benefit neighborhoods. Their answer? It depends.

“Speeding foreclosures [of vacant property] lowers the vacant, abandoned property cost to communities and financial institutions,” says Paul Kaboth, vice president of the Cleveland Fed’s Community Development Department. According to Kaboth and his colleagues, the success of the new fast-track option depends on how it’s implemented.

Read A Faster Foreclosure Option for Vacant, Abandoned Properties

Federal Reserve Bank of Cleveland

The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that along with the Board of Governors in Washington DC comprise the Federal Reserve System. Part of the US central bank, the Cleveland Fed participates in the formulation of our nation’s monetary policy, supervises banking organizations, provides payment and other services to financial institutions and to the US Treasury, and performs many activities that support Federal Reserve operations System-wide. In addition, the Bank supports the well-being of communities across the Fourth Federal Reserve District through a wide array of research, outreach, and educational activities.

The Cleveland Fed, with branches in Cincinnati and Pittsburgh, serves an area that comprises Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia.

Media contact

Doug Campbell, doug.campbell@clev.frb.org, 513.455.4479