Substitute House Bill 303 Summary

• Creates the D.O.L.L.A.R. Deed Program as a loss mitigation alternative for borrowers in default on mortgages, allowing them to transfer property to lenders through a deed in lieu of foreclosure.

• Requires the Ohio Housing Finance Agency to adopt rules establishing model forms for program applications, the deed in lieu of foreclosure, and a lease with option to purchase agreement.

• Applicants must submit an application and home affordable modification program affidavit to the lender's loss mitigation department; qualification requires occupancy of the residence and debt-to-income ratios below those set for the home affordable modification program.

• Upon approval, borrowers convey all right, title, and interest in the property to the lender via an absolute deed in lieu of foreclosure while receiving a lease with option to purchase agreement for a term of up to two years or until federal housing administration approval, whichever is shorter.

• Monthly rent equals one-twelfth of annualized real property taxes, homeowner's insurance at market rates, and any homeowner's association or condominium dues; the lender's mortgage does not merge with the property and remains unextinguished.