Today the Ohio House unanimously passed legislation, sponsored by State Representatives Jonathan Dever (R-Madeira) and Robert McColley (R-Napoleon), creating the D.O.L.L.A.R. Deed program (Deed Over, Lender Leaseback, Agreed Refinance). House Bill 303 will provide homeowners the option to remain in their homes as a tenant instead of facing foreclosure.
The legislation creates a cost effective and efficient way of avoiding a foreclosure. Under HB 303, a homeowner and lender can enter into an agreement for the owner to remain in their home, avoiding the costs of foreclosure. The homeowner would deed title back to the lender, and in return, the lender will lease the property back to the homeowner in exchange for a right to refinance the original loan. This enables the owner to stay in their homes, keep the children in the local schools, maintain local government funding on properties at the highest risk of abandonment and blight.
“This legislation is a small step in helping to keep the American dream of homeownership alive for thousands of Ohioans,” said Rep. Dever. “As our communities struggle to preserve continuity, this legislation will be a tool to keep our neighborhoods together, kids in school, and bolster our economy.”
Lenders are not required to offer the D.O.L.L.A.R. Deed under the bill. The Ohio Housing Finance Agency will assist in establishing the program.
"Ultimately, this bill allows for another resolution between parties who are looking for a win-win outcome,” said McColley. “If it makes sense for a homeowner and lender to work together, all parties could benefit in the long run."
House Bill 303 now goes to the Ohio Senate for further consideration.