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» VISIT US ONLINE @ DSNEWS.COM 85 North Dakota RANK: 46 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate MAY 2014 0.59% 0.60% 2.7% YEAR AGO 0.52% 0.81% 2.9% YEAR-OVER-YEAR CHANGE 11.7% -26.2% -0.2% Top County PEMBINA COUNTY 90+ Day Foreclosure Delinquency Rate Rate MAY 2014 1.69% 1.51% YEAR AGO 0.67% 1.86% YEAR-OVER-YEAR CHANGE 151.7% -18.6% Top Core-Based Statistical Area JAMESTOWN, ND 90+ Day Foreclosure Delinquency Rate Rate MAY 2014 0.64% 0.71% YEAR AGO 0.50% 1.20% YEAR-OVER-YEAR CHANGE 28.6% -40.9% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary May 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Ohio RANK: 15 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate MAY 2014 2.61% 2.16% 5.5% YEAR AGO 2.79% 3.24% 7.4% YEAR-OVER-YEAR CHANGE -6.6% -33.3% -1.9% Top County ASHTABULA COUNTY 90+ Day Foreclosure Delinquency Rate Rate MAY 2014 3.78% 4.10% YEAR AGO 3.25% 5.55% YEAR-OVER-YEAR CHANGE 16.1% -26.1% Top Core-Based Statistical Area ASHTABULA, OH 90+ Day Foreclosure Delinquency Rate Rate MAY 2014 3.78% 4.10% YEAR AGO 3.25% 5.55% YEAR-OVER-YEAR CHANGE 16.1% -26.1% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary May 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. South Dakota RANK: 43 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate MAY 2014 0.96% 0.68% 3.8% YEAR AGO 0.76% 1.07% 3.9% YEAR-OVER-YEAR CHANGE 25.4% -36.5% -0.1% Top County MCCOOK COUNTY 90+ Day Foreclosure Delinquency Rate Rate MAY 2014 1.58% 3.55% YEAR AGO 1.78% 3.35% YEAR-OVER-YEAR CHANGE -11.1% 5.9% Top Core-Based Statistical Area VERMILLION, SD 90+ Day Foreclosure Delinquency Rate Rate MAY 2014 0.91% 1.32% YEAR AGO 0.88% 0.92% YEAR-OVER-YEAR CHANGE 2.7% 43.1% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary May 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. FROM THE BENCH Dangers for a Performing Mortgage in Foreclosures- Alternative Options As attorneys and servicers, our focus trends to the common default scenarios and the ability to prosecute those cases efficiently and effectively. However, occasionally different interested parties, such as County Treasurers or Condominium Associations or Housing Associations will file a foreclosure action on a property that has a performing mortgage. In a judicial state like Ohio, named defendants are required to answer the lawsuit filed by a third party in order to preserve its interest. Failure to do so results in the default of the interest and release of the mortgage at a judicial sale. Again, the mortgage does NOT survive without a responsive pleading. As an answer is required, a few key ques- tions arise. Does the investor want to bid and take title even though the mortgage is performing? Do you want to satisfy the cause of the default? Or, does the investor want to mortgage to survive the foreclosure process? e latter is an intriguing option that changes the nature of the minimum bid and rights of a subsequent purchaser. e "Ohio Revised Code" allows real es- tate subject to judicial sale to be sold subject to a prior lien: "…except that in all cases where a junior mortgage or other junior lien is sought to be enforced against real estate by an order, judgment, or decree of court, subject to a prior lien thereon, and such prior lien, and the claims or obligations secured thereby, are un- affected by such order, judgment, or decree." 2 As such, any successful purchaser would take the property subject to the prior lien (first mortgage, etc.) and, although not person- ally liable for the debt, be required to ensure the debt fulfilled. Failure to pay would allow the secured party to commence a foreclosure against the property. While the appraisal process remains the same, the minimum bid is altered to reflect the obligation remaining on the performing mortgage. "…the court making such order, judgment, or decree, may determine the minimum amount for which such real estate may be sold, such minimum amount to be not less than two thirds of the difference between the value of the real estate appraised as provided in such section, and the amount remaining unpaid on the claims or obliga- tions secured by such prior lien." 3 Ultimately the decision on how to proceed will affect the prosecuting lien holder's ability to sell the property and/or proceed with its action. Filing an answer requesting the sale be subject to your interest may result in the con- tinuing performance of the mortgage—which is a good result 1 See Ohio Civil Rule 55; 2 See ORC 2329.20; 3 See ORC 2329.20 The average home price in South Dakota as of June 2014. Source: National Association of Realtors STAT INSIGHT $126,133

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