First Place urges troubled borrowers to skip foreclosure

WARREN — First Place Bank will continue to push borrowers who can’t pay their mortgages to turn over their deeds to the bank.

Officials prefer to take home titles quickly rather than go through lengthy foreclosure procedures, said Steven Lewis, president and chief executive of the bank’s holding company, First Place Financial Corp.

In a conference call with analysts today, Lewis said properties that go through foreclosure often deteriorate because no one is living in them and they are not producing any revenue for the Warren-based bank.

In order to receive title more quickly, bank officials are aggressively pushing for the cooperation of homeowners, he said.

The bank can allow borrowers to stay in the homes a little longer and waive its right to seek legal action against them, Lewis said. When mortgages are worth more than the market value of a home, the bank can seek a judgment to cover the difference.

Lewis said the borrowers usually can’t pay the judgment but the amount can stay on their credit history.

For more information, see Thursday’s Vindicator and Vindy.com.