Women are Hard Hit Victims of the Mortgage Crisis

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Everyone is hurting in this economy but some groups of people are affected more than others. One of these groups is women. Women have made tremendous financial and investment gains over the last few decades. For instance, single women now make up a greater percentage of homebuyers than single men. Despite these gains, women are also some of the most vulnerable when it comes to economic stability. Here at NHS of Baltimore, 77 percent are women. and of those 77 percent, the majority are single heads of household, homeowners.

Issues such as these were recently discussed at the Maryland Commission for Women's (MCW) 2009 Empowering Women in this Economy Symposium. The event, held earlier this month at Prince George’s Community College, included speakers such as U.S. Representative Donna Edwards and Maryland Commissioner of Financial Regulation, Sarah Bloom Raskin.

It is important to discuss womens' role in this economy because discrimination, both explicit and covert, places females at a disadvantage. Today women still earn far less money than men for the same types of work. Concerning the mortgage crisis, the National Council for Research on Women (NCRW) found that women are 32 percent more likely to receive sub-prime mortgages despite having slightly higher credit scores overall than men.

The national study, Battered by the Storm: How the Safety Net Is Failing Americans and How to Fix It, reveals even more shocking statistics. The study notes that while mothers have increased their presence in the workforce, similar gains have not been made in access to affordable child care. This is one reason why mothers, especially single mothers, are continually vulnerable when economic conditions are poor.

Another statistic from the research explains that 37 percent of families headed by single mothers were considered poor in 2008; it is estimated that the 2009 figures could be closer to 45 percent. Furthermore, the study found that African American and Latina women are among the groups most negatively impacted in economic crisis. More than encountering discrimination with loans, there are many ripple effects that women must face when it comes to economic stability. Furthermore, women are most often the primary care providers of children, and therefore healthcare and child care factors must be taken into account.

We cannot let the economic gains made by women in the last few decades dissipate because of the financial crisis. The National Council for Research on Women suggests writing to your representative about womens' issues or simply starting a discussion with friends and neighbors. In thinking about ways to combat and alleviate issues due to the economic crisis, we need to have solutions that are catered towards the interests and needs of women.

To learn more about gender disparity and discrimination in home mortgage lending click here.

Renters Risk Losing Homes in Foreclosure Too

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

At NHS of Baltimore, foreclosure prevention counselors have helped many individuals negotiate loan modifications with their lenders in order to mitigate the loss of a home. However, when it comes to foreclosure prevention, our services aid mainly homeowners, not renters. Yet according to the National Low Income Housing Coalition, an estimated forty percent of people losing their homes due to foreclosure are renters. In some cases, tenants may not even be aware of the risk until they are served an eviction notice.

I recently attended a Maryland Renters and Foreclosure Conference at the Federal Reserve Bank of Richmond in Baltimore. The event was also sponsored by the Public Justice Center, the Baltimore Homeownership Preservation Coalition (BHPC), and the Rental Housing Coalition. The conference emphasized that tenants have long been ignored in the mortgage crisis and only recently have their rights been protected through law.

Fortunately, just this past spring, new federal legislation was enacted to protect renters whose landlords are facing foreclosure. This federal law, Protecting Tenants at Foreclosure Act, aims to ensure renters are aware of a possible foreclosure and, if necessary, are given an eviction notice in a timely manner. One of the stipulations of the law states that if the tenant has more than ninety days left on their lease, they may have a right to stay in the property until the lease is expired. Keep in mind that many laws concerning renters’ rights still vary state-to-state and the new federal legislation does not supersede state laws.

If you are a renter in need of assistance call Baltimore Neighborhoods, Inc.’s (BNI) Tenant-Landlord Hotline at 410-243-6007 or the Maryland Department of Housing and Community Development’s (DHCD) information line at 877-775-0357. Another great resource is the Renters’ Rights brochure published by the Baltimore Homeownership Preservation Coalition and the Rental Housing Coalition.

Keeping Your Credit Score Healthy During the Holidays

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

As we come closer to the end of the holiday season, it is possible to get caught up in various credit traps associated with purchasing gifts and essentials for your family. What many people don’t realize, is just how hard it is to get out from under heaps of credit card debt and what that debt can do to your credit. Bad credit can come back to haunt you in a number of ways.

For instance, if you’re interested in purchasing a new home, one of the biggest factors a lender will consider is your credit score. No one wants a huge shock when they go to apply for a mortgage, only to find out their credit is not up to par. The most common credit mistake consumers make during the holidays is opening a new line of credit with a retail store. This accounts for 10% percent of your credit score. These offers are usually associated with the promise of a large percentage off your purchase. Unfortunately, this pitfall is one of the best marketing tools retailers use to boost revenue. Hence, the more you spend on your current and new cards, the more it can have a very negative impact on your credit rating.

With big gift-purchase balances on your cards, it can be difficult to make on-time payments. Most people do not realize, even a single late payment of 30 days can significantly affect your score. Payment history accounts for approximately 35% percent of your overall score. For instance, a credit score of 780 can be brought down 90-110 points. A score of 680 can go down 60-80 points.

Getting stuck with a 10% interest rate can be devastating within itself. Lenders are becoming more strict as to who they approve because of the rise in foreclosure. An interesting fact to take into consideration is the new FICO score needed to qualify for a home purchase. Two years ago, a 620 credit score was good enough to get you the best rate on a 30-year fixed mortgage. Nowadays, a 700 score range is necessary for the same mortgage rate; a huge jump over the course of two years. If you do not know your credit score, feel free to access, www.AnnualCreditReport.com for your free copy. Under federal law, everyone is entitled to a free copy of their credit report once a year from each of the three national credit-reporting agencies. It’s never too late to establish a good line of credit.

Federal Government Still Trying to Work Out Kinks in Home Affordable Mortgage Program

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

In response to the widespread mortgage crisis, the Obama administration established the Home Affordable Modification Program (HAMP) at the beginning of 2009. The program was created to help homeowners avoid going into foreclosure. If borrowers are eligible, lenders will work to negotiate the terms of the loan. For instance, the monthly payments may be decreased and the repayment period extended. So far, the program has surpassed its goal of aiding 500,000 homeowners who were at risk of losing their homes to foreclosure.

Once a loan modification is designed through HAMP, a homeowner must successfully pass through a trial period of the new terms before the modification can become permanent, which has sparked some criticism, as it is estimated that only around half of these modifications will become permanent. In a recent article, the New York Times investigates why so many loan modifications fail to become permanent. The article points out the possibility that a “permanent” modification may only last for five years.

Earlier this week, the government announced they were going to make changes to HAMP in light of the aforementioned criticisms. Examples of the HAMP revamp include extending the trial period, looking more closely at paperwork, and possibly even monetary sanctions for lenders who are not doing all they can towards granting the modification. Still, a foreclosuretruth.com blogger doubts these changes will improve the program. He wonders if the HAMP program will just dig a deeper hole, leading more homeowners into exotic mortgages beyond their means.

Despite the criticisms of HAMP, the program has made some important strides to ensure that homeowners who want to save their homes are given a good faith chance to do so. According to Rena Somar, Homeownership Advisor, NHS of Baltimore, HAMP has helped many of her clients get loan modifications when the lender may have otherwise cast a blind eye. However she says, “it is still too early to judge the overall success rate of the modifications because all of my clients who have received help from HAMP are still in the trail period”.

For more specifics on HAMP, including information on whether you are eligible to participate, click here.

Holiday Green Tips

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

Gov. Martin O’Malley wants everyone to join together during this holiday season by embracing a greener lifestyle. This is part of a state-wide effort to create healthier environments for the citizens of Maryland. Although it will take time and a concerted effort by all, here are a few tips the Governor and the State Department of Natural Resources(DNR)decided to share with the Baltimore community:

1. Trying to save money on your electric bill? The use of energy lights and timers, which use 90% less energy than conventional lights, can save you up to $50 a month on your energy bill.

2. Buying local. This not only supports your local farmers and businesses, it supports the environment by decreasing the amount of carbon and shipping emissions. Click here to view specials offered in Main Street communities in Maryland.

3. Wise travel. Taking public transportation or carpooling saves on transportation emissions. Sitting in traffic decreases your fuel efficiency by as much as 33 percent. Try to avoid congestion if at all possible. Try leaving for your destination at off-peak times. For example, after 8 p.m. or early morning hours before 6 a.m. Pack as light as possible. This will also save you on luggage fees.

4. Reduce your holiday waste. This time of year averages a 25% increase in waste products.The use of less and/or recycled packaging such as reusable fabric and old newspapers saves on waste.

5. Recycle your Christmas tree. Don't put it into the landfill. Most local governments have tree recycling programs. Click here to learn about recycling services available in Baltimore. Lastly, when you cut a tree, please plant a tree.

These are just a few helpful tips to help consumers on their way to becoming a greener, cleaner community.

Banks Tighten Fists on Personal Lending: loans still hard to get

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

The current economic climate has everyone wary of financial loans. Risky lending practices that enhanced the mortgage crisis have hurt lenders, borrowers, and the economy as a whole. Consequently, many lenders are changing their loan policies, especially concerning unsecured personal loans to individuals with a poor credit rating. An unsecured, or signature loan as it is also known, is one that is not backed by collateral. Often this means higher interest rates as well.

One financial institution that has changed their lending policies in the wake of today’s economy is Bank of America. As of October 31, 2009 Bank of America is no longer offering personal loans. Other large banks such as Wells Fargo and CitiBank continue to offer personal loans, however Subprime Blogger anticipates that other banks may follow in the footsteps of Bank of America. Other places to look for loans are smaller regional banks and credit unions.

As Bank of America has shown, many lenders are less willing to lend money to individuals with bad credit. Minimum credit score limits to get a loan have been on the rise and a lower credit score will likely mean higher interest rates on any loan. Thus it is increasingly important to keep your credit and other financials in shape. One way to improve your credit is to make small purchases using a credit card and pay them back right away.

Research other ways to raise your credit score and consider consolidating your debt to lower interest rates. NHS of Baltimore offers financial fitness classes free of charge, which discuss the importance of building your financial stability and offer advice on how to do so. And as always, NHS of Baltimore's counselors are available to answer any of your questions.

BGE Customers to Receive $100 Credit in February

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

Chilling winds, freezing rain, single digit temperatures- we are all familiar with they place on our heating bills during the winter months. Families struggle every year to find a way to lower their consistently higher utility costs, which most commonly peak in the month of February. Baltimore Gas and Electric (BGE) has decided to deliver a post-holiday gift to their customers- a $100 credit on their February bills!

You may ask, too good to be true? It turns out this credit is part of several conditions imposed by the State of Maryland and energy regulators. BGE’s parent company, Constellation Energy Group has recently been approved for a joint merger with Electricite de France (EDF), which closed its doors last month. After a status hearing earlier this week with the Maryland Public Service Commission, BGE mapped out all of their precautionary measures to protect their business in case the parent company runs into financial troubles. All residential customers as well as customers who have switched to another supplier are eligible for the credit. This credit is in response to increasingly higher bills paid by so many Marylanders.

Under the new long-term contracts, customers should be seeing a decrease in their bills in the coming months; as natural gas and electricity prices are dropping globally. BGE gas bills are expected to decrease by as much as 25% this winter. Electric bills should drop by as much as 15% by 2012 and the decline is expected to continue. Constellation’s merger with EDF will create a pool of $36 million for Constellation’s foundation, to help pay for the creation of a visitor’s center, and the EDF’s relocation to Maryland. The long-term fate of the various new projects from this merger is dependent upon the federal loan guarantee from the U.S. Department of Energy (DOE). This will be decided next year.

Credit Repair Scams are on the Rise

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

As the economic recession continues, more people are looking into better options to reduce their expenses, and repair their credit. Unknowingly, consumers are becoming victims of several scams plaguing our city. Two of the most popular include: Credit repair and Bankruptcy advice programs. The number of illegal companies promising help with these issues is on the rise. Their main advertisement tools are signs posted on utility poles, lawns, and vacant houses; perhaps to target people in deteriorating neighborhoods.

An attorney for The Community Law Center (CLC) pulled an ad from a pole showing how prevalent these scams are around the city. An intern at his office researched the phone number and company listed on the ad. It was traced to a real-estate agent with major credit problems. When phone inquiries were made, all they ever got was a voicemail message. Apparently, the resident agent listed was the head agent’s sister; with legal problems of her own. He swore she had nothing to do with the company. Ironically, when questioned about his staff, he stated he had two partners and a silent partner. He only volunteered to identify the two partners by last name.

It is illegal nationwide for any non-lawyer to give legal advice and/or handle money client under the guise of legal council; up-front fees for credit repair is also illegal. Although they can charge fees for preparing petitions, this fee can only amount to the equivalent of the cost of a typist. The real-estate agent talked about above claims he provides his services as a way to serve the community. He agreed to meet a representative from CLC, but subsequently changed his mind and offered a follow-up call instead.

When looking for any credit repair or debt management program, please make sure you research the company thoroughly before you decide to commit to services. Scammers are on the rise. Don't be a victim.

Make Saving a Priority During the Holidays

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

These days most people are feeling the pinch of the ongoing economic crisis. Debt from buying a home, going to school, or major credit card purchases are quite commonplace in America. In fact, our “debt economy” actually encourages people to borrow money and live in debt.

But all this debt can be even more intimidating when savings accounts dwindle, which is what is happening among the majority of Americans. A recent study documented on National Public Radio(NPR) found a large percentage of Americans are unable to come up with extra funds in case of emergencies, even if they were to ask relatives for help. In the challenging economic climate that we are living in today, saving money can be one of the most difficult but also one of the most important things we can do.

It is frustrating to think about putting away money into a savings account when many of us are just struggling to get by. Yet, problems such as car troubles or an unexpected sickness can cause serious financial issues, especially with no extra money to fall back on. Start out small and try to save a few dollars each week. Maybe sacrifice eating out or buying a coffee. Try walking to the store or work instead of driving.

The Baltimore Sun’s Consuming Interests blog is a good resource that gives the lowdown financial deals. A recent post noted hidden ways (http://weblogs.baltimoresun.com/business/consuminginterests/blog/2009/11/top_10_hidden_deals_10spot.html) to save money in Baltimore. For more information on ways to save here are 100 tips to saving. Check out The Simple Dollar for even more tips on how to stretch your budget and save money.

While saving money strategies can really be beneficial, don’t buy something just because it is on sale. Get the deals you need but don’t make purchaces that you really don’t need simply because you can get a deal. And be careful on Black Friday! Make a budget, include money for savings, and stick to it.

New Federal Incentives for Home Rehabs

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

The sheer number of available renovation-ready rowhomes is skyrocketing in Baltimore. This is in response to the growing number of foreclosures, bank-owned and distressed properties. The government offers a loan program, with an excellent interest rate, for people interested in investing in a large home renovation project. It is called the Federal Housing Administration’s (FHA) Section 203(k) program. Homebuyers are only required to contribute a 3.5% down payment.

The added incentive is a single mortgage is combined with renovation costs. This simplification process is attractive to first-time homebuyers, as well as investors. In the wake of the recession, it is easier to purchase a rehab home at a cheaper rate, then to purchase a brand new and/or custom-built home. Many could not afford to purchase a home if it was not for this program, and the $8,000 tax credit.

Realtors are providing their clients with all the information they can about the program. They are trying to get them pre-qualified as there is a rise in short-sell properties. A number of short-sells require moderate to major repairs. Most of the time, the sellers are unwilling to invest money in the repairs. With the deteriorating condition of vacant homes on the rise in Baltimore, the 203(k) program is getting a lot more attention.

Another similar program is the 203(k) streamlined program. This allows the borrower to add up to $35,000 in renovation costs to their current mortgages. The standard program does not have a loan amount limit. The general requirement for both programs is the overseeing of all the renovation work by a HUD-approved consultant. They are responsible for giving you an estimated cost of repairs needed. Health and safety issues are also their highest priority. Make sure you pick a reputable home contractor for your repairs, to maximize your expenditures.

As Anne Frank Once Put it, "No One Has Ever Become Poor By Giving"

By: Jessica Schmidt-Bonifant, Philanthropy Manager, NHS of Baltimore

“Think of giving not as a duty but as a privilege." That's how John Rockefeller viewed giving, and it certainty rings true in these challenging times. Many of us have felt the effects of the economy first hand whether our paychecks have been reduced, our investments depleted, or our home values decreased. We all have less and less disposable income to take care of the many needs piling up on our plates- especially this time of year when we have gifts to buy, food to make and traveling to do, on top of the appeal letters that arrive at our doorsteps. It is easy just to add the letter to the stack of recycling in the corner and think “Not this year, there is just too much”.

It is easy just to shove off the request and move on with our day, but as Mr. Rockefeller said giving is a privilege. Not everyone has the ability or capacity to make a donation, but if you do think about how lucky you are. You have the unique opportunity to make a difference; you have the chance to change someone’s life by making a contribution no matter how big or small. Obviously we aren’t all the Rockefellers, we can’t make million dollar pledges for organizations to build new offices or start new clinics, but our gifts still matter and that is important to remember.

Nonprofits cannot run on the desire to help people alone. We have all the right pieces, we have the dedicated staff, and we have the desire to work to change lives, but at the end of the day we need to keep the lights on, we need to call our clients and that is where your contribution matters. Whether you give directly to a program or to an annual fund your gift matters it lets us do our job and it lets us help those in need.

So in these challenging times take a moment to remember that if you are able to make a contribution you are lucky, you can change people’s lives for the better and at the end of the day what better gift is there then that. Click here to donate.

Don't Wait to Get Foreclosure Help

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

If you are falling behind on your mortgage payments, or anticipate that you will, consider discussing a loan modification with your lender or at least getting advice from a HUD certified counselor. Taking this route is much easier than waiting until it’s too late. Unfortunately, in America, some people equate foreclosure with personal failure and thus are ashamed of getting help.

Recently, I spoke with a Realtor who interacts with homeowners and potential homeowners, who felt the reason that homeowners often wait until its too late is an issue of pride. Yet we are in a time where the mortgage and foreclosure crisis is widespread and affecting so many people. Moreover, many experts anticipate that the rate of foreclosure is only going to get worse in the coming months.

NHS of Baltimore gets a staggering number of calls from individuals who have waited until the last minute to ask for help. Our Program Assistants receive phone calls from people nearly every day who are facing foreclosure and already have a sale date for their homes. Yet, if you have received a notice of foreclosure by certified mail, our HUD approved counselors still may be able to help you. In the state of Maryland, lenders are now required by law to afford homeowners 90 days from the official notice of foreclosure to rectify their mortgage before the sale takes place. However, once you have received a sale date for your home, it is less likely our counselors can help you. Rather, in this situation, a lawyer would be the preferred person to contact.

NHS of Baltimore refers people who need legal aid to the Maryland Volunteer Lawyer Services (MVLS). They can be reached at 410-547-6537. Another resource to check out is the Legal Grind where you can get legal advice for a small donation. Whether you are in a position where you need legal aid or just starting to fall behind on mortgage payments, do not be ashamed or scared to ask for help. For more resources on foreclosure prevention, check out the Baltimore Homeownership Preservation Coalition (BHPC) or the Maryland Hope Initiative.

Current and Future Homeowners Question the Homebuyer Tax Credit Extension

By: Salina Green, Outreach Coordinator, NHS of Baltimore

As soon as Congress decided to expand the $8,000 tax credit for first-time homebuyer (until April 30th, 2010), many people began questioning their eligibility. Current homeowners are seeking answers concerning the new tax credit law passed last week, which will put more money into their pockets. This new legislation allows current homeowners to take advantage of a tax credit up to $6,500 if they purchase a new home. All sales must be completed and closed out by June 30, 2010. Both the first-time and current homeowners’ tax credits come with strict stipulations that must be followed.

The new rules in place come after the IRS paid out an enormous sum of money because of fraudulent claims. Thousands of ineligible people received funds. Under the new law, a buyer must prove they purchased a home and provide prove of age; 18 is the minimum. Some of the new restrictions are as follows:

Anyone who purchases a home for more than $800,000 will not qualify for either tax credit.

To be eligible for full credit after November 6th, your income must fall below $125,000 for single filers and $225,000 for joint filers.The credit decreases in value for people making more than those amounts, phasing out completely after $145,000 for singles and $245,000 for couples.

Settlement statements must be attached to your tax returns as proof of purchase.

These are just some of the benefits established by the new legislation. It was created to allow people more time to gather the revenue necessary to purchase their first homes. Recent retirees can also benefit by downsizing to a cheaper home and still obtain a nice tax credit. There are special concessions in place for military member at home and abroad, who desire to participate in the programs.

American Casino Hits Theaters in Baltimore Nov. 12th: film explores the collapse of the mortgage industry

American Casino, a documentary about the collapse of the mortgage industry will be playing at the Senator Theater (5904 York RD. Baltimore, MD. 21212) from November 12, 2009- November 19,2009. Shot partly in Baltimore, several Baltimoreans were interviewed in this film that takes an in-depth look at the mortgage meltdown.

Click here to view the trailer.

U.S. Senate Ramps Up Effort to Stop Mortgage Fraud

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

Senator Barbara Mikulski of Maryland’s office announced last week that the Senate successfully passed the Fiscal Year 2010 Commerce, Justice, Science and Related Agencies (CJS) Appropriations Bill, which allots $437 million to the Justice Department to track down and prosecute perpetrators of mortgage and financial fraud.

“It’s time to foreclose on the bad guys and stop the foreclosures on homes,” Senator Mikulski said. “I like most Americans, am outraged by the predatory practices, deceptive marketing and lending schemes that have swept across the country, especially in Maryland.”

According to Mikulski’s office, Maryland saw a vast rise in mortgage scams in 2008, totaling more than 60,000. The new money apportioned by the Senate to combat such scams will allow the Federal Bureau of Investigation (FBI) to hire 50 new agents and 60 new accountants who are dedicated to identifying scammers and bring them to justice.

If you are a homeowner and you are delinquent on your mortgage or facing foreclosure, beware of anyone who promises to secure a loan modification for you, especially if they ask for money up front. In Maryland it is illegal for anyone to charge a fee up front for a loan modification, but more importantly, there are a plethora of local non-profits who will help you for FREE. While there is no guarantee that your home can be saved, NHS of Baltimore’s housing counselors say they have secured positive outcomes for our clients more often than not.

Avoiding the Flu This Season: home is the first line of defense

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

There are countless precautions you can take to stay healthy this flu season, starting in your own home. Surrounding yourself with a healthy environment can mean better health. Everyone knows the importance of washing your hands thoroughly but think about how many things your hands touch each day in your house. Disinfect your home to keep your family healthy this flu season. While sanitizing your home is not a guaranteed safeguard against getting sick, it can help. Click here to read about simple cleaning tips to make your home a healthier place to be.

Don’t forget to treat your body well too. There is no need to go out and buy expensive vitamins or remedies. Eating Vitamin C rich foods such as oranges and drinking tea with antioxidants are affordable ways to improve your immune system. Don’t feel pressured to buy a product just because it guarantees immunity. Read CNN’s H1N1 flu-to-do (and don’t do) list for more tips on staying healthy. You may be surprised that there are a lot of ways that we put ourselves at risk for the flu without even realizing it.

The key to protecting yourself from illness is not to worry to much or too little. Educate yourself on signs, symptoms, and remedies for sickness. For instance, there are simple ways to tell if you are coming down with the flu or just a cold.

For more information on how to keep yourself and your family healthy this flu season, check out the Educational Fitness Solution’s free webinar on November 11, 2009 from 9:00am to 10:00am est.

Holiday Budgeting: Get a Gift for Everyone on Your List Without Breaking the Bank

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

The Holiday season is soon upon us. Many of us are trying to figure out ways to spend less money and cut corners wherever we can. The first thought would be to buy fewer gifts. However, with a little creativity, you may still be able to shop for everyone on your list. Gift exchange is a viable option. The first line of business is to see if everyone in your group agrees to purchase one gift instead of multiple ones for the entire group.

Secondly, a price point should be set to avoid overspending and gift favoritism. Choose some sort of theme. This can easily turn into a party if you decide to explore this route. Make it fun. See if you can make a game out of the exchange; or even establish a stipulation of homemade-only as a way to challenge the gift-givers. Suggesting a little creative competition, helps everyone involved feel like they are a part of the giving experience. Everyone likes to see a happy face upon receiving an extraordinary gift.

We have all been victims of the “throw the name in the hat” choosing game. To avoid the unwanted, generic gifts such as fragrant soaps, candles, socks, etc, be sure to place some gift preferences and other pertinent information on your name card. And finally, suggest using a coordination system online to create wish lists for your group. This can cut out the paper trail and make sure everyone is organized and e-mails are received. Here are some site suggestions if you choose to go this route: www.elfster.com, www.secretsanta.com.

Remember, no one should have to go into debt over the holidays. There are plenty of ways to show you care other than tangible gift-giving. Help a neighbor out, offer your services to people in need of assistance. These are the gifts that keep on giving year-around.

Your Money Bus is Coming to Baltimore

"Your Money Bus" travels all across the county offering free financial advice to people of all ages, with the intention of helping to educate consumers on the need to reduce personal debt while increasing savings. The events "Your Money Bus" hosts are held in conjunction with city and civic organizations to reach out to consumers who have questions about their personal financial well-being. By partnering with agencies in the cities they visit, they are able to offer consumers access to some of the best resources the city has to offer for financial fitness education and counseling.

The "Your Money Bus" will be at 3 locations around the Baltimore area starting Wednesday Nov. 4, 2009 and ending Friday Nov. 6, 2009. NHS of Baltimore will have HUD certified counselors available to provide advice at the Thursday and Friday events.

Nov. 4th
6:30pm to 8:00pm - "Recession Relief" Town Hall Meeting at the Conference Center at Sheppard Pratt Auditorium (6501 North Charles Street, Towson MD 21204)

Nov. 5th
9:00am - Press Conference in the Baltimore City Hall Rotunda.
10:00am to 4:30pm - Free financial advice event at Baltimore City Hall (100 N. Holliday Street, Baltimore, MD 21202). Bring your financial questions and get them answered by a financial advisor.
12:30pm to 1:30 pm - Live Baltimore will host a free class titled, "Preparing For Home Ownership." The class will teach the basics of purchasing a home and how to qualify for a mortgage. If interested in attending this class, please click HERE to register.

Nov. 6th
11:00am to 1:00pm - Free financial advice event at the Hunt Valley Towne Centre (118 Shawan Road, Hunt Valley MD 21030

For more information on all three events, click here.

Tax Credit for First Time Homebuyers May Be Extended

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

The $8000 tax credit for first-time homebuyers is currently set to expire on November 30, 2009. However, Congress is considering extending that deadline until April 2010. Along with other government programs, such as Cash for Clunkers, the housing tax credit may have contributed to a recent 3.5% boost in the United States economy. More Americans have been purchasing homes due to the cash incentive. Unfortunately, some people been defrauding the tax credit program and using it in ways that were not intended; a couple hundred individuals under eighteen years of age, including a four-year-old, were able to receive the money in their names.

If the credit is to be extended, additional conditions and developments will be added to regulate and revise the distribution of funds. More documentation will be required on behalf of applicants in an effort to reduce abuse of the program. In addition to a time extension, the revisions of the tax credit would also make more individuals eligible to receive the money. Under the current program, yearly income for eligibility is capped at $75,000 for individuals and $150,000 for couples. The proposed revision would increase those numbers to $125,000 and $250,000, respectively. Considerations are also underway to extend the tax credit beyond just first-time homebuyers. Current homeowners looking to move may be able to receive up to $6,500 if they meet the monetary requirements and have resided in their current homes for at least five years.

Unsurprisingly, the issue of extending the homeowners’ tax credit has aroused several debates. Still, if the credit does not end up being extended, there are other sources to look towards for housing and down payment cost assistance. In Maryland, plenty of programs are in place to assist potential homeowners financially. Keep in mind that in order to be eligible for many of these grants, a certificate documenting homebuyer education is required. NHS of Baltimore offers homebuyer education classes, as well as one-on-one sessions with a housing counselor.

Furnace Replacement Program Will Help Low Income Families With Energy Efficiency

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

The Baltimore Community Foundation (BCF) announced last week that it will launch the Baltimore Gas and Electric (BGE) Heating System Fund beginning in November, which will provide newer, more energy efficient furnaces to low income families in Baltimore.Income eligibility will be determined by the requirements set by the Maryland Weatherization Assistance Program. BGE contributed $1 million to start the program in collaboration with BCF and hopes it will teach families "how to use their resources efficiently and significantly curb energy-wasting habits".

Making "green" options available to low income families and individuals is becoming increasingly important. According to research conducted by NHS of Baltimore, 56% of neighborhoods with median incomes at or below $30,000 have homes that were built prior to 1950. Older appliances are already less energy efficient but as they age, they become even less efficient, creating greater costs for the homeowner. Although switching to these new appliance saves the homeowner money in the long run, the up-front cost can be quite extensive, which many lower income families cannot afford.

Programs like BCF's furnace replacement program provide the opportunity these families to to make the change to more efficient household appliances. If you are interested in applying for the program, contact the Baltimore Housing Weatherization Program by calling 311 or 443-984-1066 weekdays between 8:30 am - 4:30 pm, or visit www.baltimorehousing.org. To read more details on the program, click here. Don't forget, the program begins in November.

New Initiative in Maryland Seeks to Stop More Foreclosures

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

There is some uplifting news during the current foreclosure crisis- Governor, Martin O’Malley’s administration is working on a new game plan that encourages mediation between homeowners facing foreclosure and their lenders. Assigning mandatory, independent mediators to oversee each foreclosure case will ensure fair negotiations between the lender and the homeowner. A number of states have already implemented this program with promising results. If the program passes in the state legislature, it will hopefully sway homeowners to seek additional help when they are faced with a foreclosure. Many do not seem to know about all the help available to them right in their backyards.

Foreclosures continue to rise in Maryland at a rate that far outpaces the national average. According to RealtyTrac, there is one foreclosure filing per every 157 households in Maryland; a rate that has jumped by 85.6% since this time last year. Market stabilization continues to be difficult and encouraging lenders to work with more homeowners to modify their loans is key. The greater concern is who would pick up the costs associated with hiring and retaining mediators from reputable organizations, for potentially large case loads. This is where the new grants come in. Enforcing stricter programs and laws that push lenders to explore a loan modification and prevent a foreclosure is the goal of the new federal initiatives.

NHS of Baltimore Welcomes Pat Hull Back to the Team as Education Manager

We would like to extend a warm hand to Patricia Hull as she returns to NHS of Baltimore. Her passion and dedication to preserving homeownership through counseling and education is a valuable asset to the organization.

How Residents Can Fight Foreclosures in Their Neighborhoods

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

I recently attended the NeighborWorks Community Leadership Institute (CLI) in Milwaukee, Wisconsin. The CLI brought together neighborhood residents and community leaders from all over the United States. The underlying theme was: “together, we can rebuild, renew, and sustain”. In other words, everyone can play a part in making their neighborhood a better place to live both now and in the future.

One of the workshops I attended during the weekend was entitled “Engaging Our Communities to Deal with Foreclosures”. The class did not focus so much on foreclosure prevention or loss mitigation, but rather what neighborhoods can do in the face of foreclosures that have already happened. While foreclosure prevention is extremely important, sometimes foreclosure is inevitable- and entire neighborhoods are affected.

In neighborhoods that are hard hit with foreclosures, property conditions and values decrease. These areas may be targeted with loss mitigation scams, social cohesion between neighbors can weaken, and residents’ confidence levels may erode. This list is not all-encompassing, as foreclosure can affect neighborhoods in numerous ways. By thinking about the impacts listed above, one begins to see how widespread the effects of foreclosure can be. Read more about the community impacts on Stable Communities.org.

Residents can play a key role in improving neighborhoods that have experienced foreclosure. Further, neighbors who combat the effects of foreclosure are also playing a part in preventing further foreclosure from happening. Educating others in your neighborhood about the foreclosure problem, organizing a neighborhood clean up, and marketing the neighborhood’s for sale properties are all roles that residents can be a part of. Check out more ways to get involved in foreclosure response at Foreclosure Response.org. Policy Link also has a great toolkit with resources on “Reclaiming Foreclosed Properties for Community Benefit”. Don’t be afraid to start small- try picking up a few pieces of trash on the street or introducing yourself to neighbors.

NeighborWorks Launches National "Loan Modification Scam Alert" Campaign

On Monday, Oct. 26, at 12:00 noon eastern, NeighborWorks America will kick off its nationwide "Loan Modification Scam Alert" campaign with a live webcast. The campaign is designed to alert and empower homeowners to protect themselves against loan modification scams. The webcast will be hosted from City Hall in Las Angeles, California, a state particularly hard hit by loan modification scams. As part of the launch, the partnership will also designate November as "National Loan Modification Scam Awareness Month". To register for the live webcast, click here. To visit the campaign website, click here.

A note from Ken Wade, CEO, NeighborWorks America

Colleagues and friends- as you know, a new wave of scam activity is sweeping the nation - loan modification scams. In response to this crisis, NeighborWorks® America is launching a national public education campaign designed to alert and empower homeowners to protect themselves against loan modification scams, find trusted help and report illegal activity to authorities.

Our campaign cannot succeed without your support and participation. In the months ahead, our combined efforts on behalf of the "Loan Modification Scam Alert" campaign will alert millions of distressed homeowners to know the signs, get the facts and report scam artists in their communities.

Please join us for a live Webcast of the campaign's kick-off event at the Los Angeles City Hall at 12:00 noon – Eastern Standard Time – Monday, October 26. Invite staff, local partners and friends to watch the event too.

And be sure to check out our campaign website, beginning Oct. 26. There, you'll find more information about the campaign and downloadable, customizable materials to alert homeowners in your community.

Knowledge...along with your participation...is our best defense.

Sincerely,

Kenneth D. Wade

Budgeting a Healthy Eating Routine for Your Family

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

During this difficult recession, consumers are trying to find ways to cut their food budgets to a manageable level. Doing so does not mean people need to sacrifice buying healthy, organic and local foods. Learning to budget for healthy meals is key to maintaining and supporting your family’s health and might actually help you save money. NHS of Baltimore’s homeownership and financial advisers will tell you that when you’re on a strict budget, one of the first things you should cut are your eating out expenses. Ordering out for dinner more than once a week can really add up financially and take a toll on your health wise.

One tip for stretching the dollar is to buy from the local farmer’s markets, as food is generally cheaper here than in the supermarkets. As the season’s change, using coupons and practicing careful spending are important in purchasing your family’s groceries. Many stores are trying to be more accommodating to help out cash-strapped customers.

For those who cannot afford a completely organic diet, a cheaper alternative are products labeled “hormone-free” or “rBST-free”. Avoiding hormones is better than nothing at all. To better understand how produce is labeled and numbered, here is the meaning of the numerical system associated with food stickers:

A label with a 5-digit number beginning with a 9 is organic produce (i.e. – 95736).
A label with a 5-digit number beginning with an 8 is genetically engineered produce (i.e.- 84621)
A label with a 4-digit code is conventionally produced. Usually, this number begins with a 4 or 3. (i.e. - 4310 or 3911). Produce from this category are grown with synthetic fungicides, herbicides, fertilizers, and other harmful additives.

The website, www.foodnews.org/methodology.php describes the top lists of the most contaminated and least contaminated foods we consume in bulk. It also offers a guide to decrease exposure to harmful food chemicals.

Federal and State Governments Offer Incentives to Upgrade Your Old Household Appliances

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

The federal government is providing over $300 million in stimulus money to reward homeowners who purchases energy-efficient appliances for their home. The State of Maryland is receiving over $3.5 million. It is up to each state to designate which appliances qualify for the new plan. This stimulus package was created to give a boost to the ailing retail market and the environment. Many utility companies are already offering rebate programs for appliances that utilize less water and energy than older standard models.

The stimulus is just another stepping stone to boost our economy. The federal government also offers tax incentives for other energy-efficient installments in homes. Items such as new windows and insulation qualify for this program. Maryland offers some matching incentives as well.

Recycling old appliances is an option for consumers who do not want to just throw them out. Steel is the main recyclable component of older model kitchen appliances. This not only helps the environment, it saves homeowner’s money on their utility bills each month. Some people have saved over $40 a month in costs. BGE will come to your home, pick up your refrigerator or freezer and pay you $50 each as an incentive to recycle and replace them. Not bad huh?

Newborn Holistic Ministries Restores Fountain in Upton Park as Last Puzzle Piece for Intersection Revival

By: Todd Marcus, President, Newborn Holistic Ministries, Inc. (Mr. Marcus is a first time guest blogger. His organization's story about the restoration of the water fountain in Upton park and their overall success in revitalizing the entire intersection, is testament to what can be achieved through tenacity and hard work. Residents, no matter your struggle, you should know you are not alone. Baltimore offers so many non-profits waiting to help you.)

As a community based nonprofit, Newborn Holistic Ministries was founded in 1996 by life-long community resident, Elder C.W. Harris. We have always been focused on meeting the material, social, and spiritual needs of our community. These needs have been intense as our communities struggle with severe poverty related issues such as drugs, unemployment, poor schools and lack of resources.

When we acquired our first building at our intersection (1928 Pennsylvania Avenue), three of the four corners had abandoned and dilapidated buildings and were dominated by open-air drug dealing. The fourth corner had a brick-top park whose main feature, a large water fountain, had been off for nearly 20 years. Furthermore, these buildings were all surrounded by vacant lots - the result of buildings demolished by the city without a redevelopment plan.

When we began renovation of 1928 Pennsylvania Avenue, our founder, Elder Harris hoped to turn it into a center for arts but changed course at a community meeting when a resident spoke about a lack of recovery programs for women and asked for help. From that experience a new vision was born and in 2000, after completing renovation, we dedicated that building as Martha’s Place, a six-month transitional program for women overcoming drug addiction and homelessness.

Since then, our small nonprofit has continued to rebuild the intersection. With funding support from individual donors, foundations, and city grants, our small staff has been able to operate Martha’s Place, which has seen over 100 women leave our program clean and sober with a job and housing. At the same time, we’ve also been able to acquire and renovate four rowhomes on the northeast corner of our intersection to provide long-term housing for graduates of the Martha’s Place six-month program. We’ve taken the seven vacant lots (8,500 sq/ft) surrounding our buildings and transformed them into beautiful community green spaces with meditative gardens, murals, flowers, and fountains. And this November we will complete the renovation of a commercial building on our southeastern corner at 1947 Pennsylvania Avenue which will feature arts classes in ceramics, visual arts, dance, and writing through our new Jubilee Arts program.

Throughout all this work however, the abandoned fountain at our northwestern corner remained dormant. Over the past year we worked to slowly push closer to our goal of reviving this corner. Beginning with strategic guidance from our partners at the TKF Foundation and Tim Almaguer at Friends of Patterson Park, (which successfully restored the fountain in Patterson Park) we worked to identify ways to get the fountain turned back on. Next steps involved regular contact with our city councilman Bill Cole, who worked diligently on our behalf to coordinate city agencies to help restore our corner fountain. Finally, with great help from Vernon Smith in Baltimore City’s Department of General Services, crews began to repair the fountain and this September the fountain shot to life for the first time in over 20 years. Though some kinks in the fountain’s operation are still being ironed out, we are celebrating this restoration and the beauty and symbolic resurgence it gives our community.

I was recently told there is a strategy stating that if all four corners of an intersection in a struggling area can be reclaimed, they will anchor the area and lead to long-term redevelopment. With the dedication of our final building at 1947 Pennsylvania Avenue scheduled next month on November 14th, at 11:00am, we will have completely revived our entire intersection to address the needs in our community and make it an area of beauty and hope. We still face tremendous work to do in order to achieve the full revival of our community but our work thus far is proof that it can and must be done.

To learn more about our work or to become involved, please email: newborntm@hotmail.com

New Report Shows Minorities Denied Mortgage Credit 3 Times More Often Than Whites

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

Call it is a symptom of the current housing and economic crisis; the credit market has tightened for everyone across the board. Business owners have found it more difficult to get lines of credit for their pay rolls, just as consumers are facing stricter requirements for credit scores and collateral; even more disturbing is that the retraction of credit is hurting minorties at a greater rate. A press release out by the Federal Financial Institutions Examination Council (FFIEC) reveals that mortgage credit has tightened almost 3 times more for minorities than it has for whites. According to the data, African Americans were denied conventional mortgages 36.1% of the time in 2008, compared to Hispanics at 31.1% and whites at 13.6%.

Additionally, the market share of minority homeowners shrank drastically in 2008, with African Americans seeing a decline from 8.7% to 6.3% and Hispanics from 12.1% to 8.5%, while the market share for white homeowners actually increased from 62.7% to 69.1%.

NHS of Baltimore's own numbers explain the decrease in homeownership among minorities as being largely connected to the collapse of the subprime mortgage market. When the collapse first began, the majority of our foreclosure clients were low to moderate income, African American homeowners who fell victim to subprime lending. As their interest rates went up but the value of their went down, they found themselves both unable to pay their mortgage and unable to sell their home.

"The sub-prime market provided access to homeownership for families and individuals with poor or limited credit. However it did not promote sustainable borrowing practices and therein became a major threat to wealth accumulation for low to moderate income households," said Tanya Washington, Chief Operating Officer, NHS of Baltimore.

Low to moderate income, minority homeowners need to have access to sustainable, conventional mortgage loans in order to increase homeownership and build their net wealth. NHS of Baltimore encourages folks who are thinking about buying a home to seek financial and homeownership counseling prior to applying for a mortgage loan. It's true that mortgage lenders are requiring much higher credit scores, more downpayment, and more savings. Don't give them an excuse to turn you down. Make sure your credit and finances are in order first. Nonprofits such as NHS of Baltimore offer this counseling free of charge and will work with you personally to ensure you are prepared

Deputy Secretary of HUD Offers Inspiration in Difficult Times

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

This past week, I was fortunate enough to hear Ron Sims, Deputy Secretary, U.S. Department of Housing and Urban Development (HUD), give a keynote speech at the Maryland Asset-Building Community-Development (ABCD) network luncheon last week. In his speech about creating sustainable communities, Sims emphasized the connection of so many social issues and problems. For instance, you can’t talk about development without talking about transportation, parks and green space, the environment, homelessness and unemployment. Although tackling these issues from a comprehensive perspective is somewhat overwhelming at times, it is also encouraging to remember that working in one small area can have a positive effect on other issues as well.

Sims pledged that HUD aims to focus more on sustainable urban development. A basic definition of sustainable development is meeting current needs without deterring future generations from doing the same. Sustainability is a word that is thrown around a lot lately in dealing with environmental issues. But it is about more than just the environment – it is about creating vibrant communities that are economically and socially diverse, so that they are viable in the future. Development leaders in Maryland are planning a conference later this month to discuss sustainability, modeled after successful efforts in Washington state. It is important to remember governmental agencies and non-profits cannot promote sustainability on their own; it is going to take community effort.

It can be difficult to think about the future when many of us are struggling to get by from day-to-day. Start off small by making conscientious choices and considering the effects your decisions will have on both current and future generations. Organizing neighborhood clean-ups is one way to make your community an inviting place to be. It is important for visitors to feel as though the residents care about their neighborhood. One community that is showing Baltimore they care is Park Heights, in northwest Baltimore. The residents there host monthly meetings to discuss their local problems and come up with viable solutions. They place emphasis on the individual’s ability to make a difference, and it is working for them.

Enjoy All That Baltimore Has to Offer This Fall

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Take advantage of the free events in Baltimore this fall. Learn more about the city you live in and have fun! For instance, the recently finished murals at Hollins Market make for an interesting piece of art that is full of history. Make sure to stop by to see the finished community art project.

Baltimore’s Office of Promotion & the Arts, the same people who bring you the Sunday farmer’s market under the Jones Falls Expressway, are putting on Free Fall Baltimore this October. During the next month several museums, events, and workshops across the city will be free. There is even one night this month when the Baltimore Aquarium will be open free of charge to families. Take advantage of these great opportunities this October to explore the places that make Baltimore unique. Check out a list of the events to see if you will need to reserve passes before attending.

Also this fall, Live Baltimore is offering several free workshops that could be of value to current homeowners as well as potential homeowners. Spend an hour or two this fall learning about Baltimore City property taxes or take a class on money saving tips for homebuyers. Though these workshops are free, you must register online to reserve a space.

Properly Dispose of Hazardous Waste from Your Home

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

This weekend the city of Baltimore is conducting a hazardous waste pickup of old paint and pesticides. The location is at the Baltimore Polytechnic Institute parking lot on October 10th & 11th, from 9:00 a.m.-2:00 p.m. Proof of residency is required. Examples of the some of the items permitted for drop-off include gasoline, car and household batteries, paint, pesticides, and pool chemicals. Unacceptable items are acetylene tanks, smoke alarms, fireworks, fire extinguishers, acids, asbestos, and any unknown or unlabeled materials. For more information you can call 311 or click here.

This effort is part of Baltimore’s effort to encourage more green-friendly activities throughout the various communities in the city. Unbeknownst to most of the public, hundreds of thousands of gallons of hazardous chemicals pass through the city by truck, rail, and ship, which potentially spells disaster. This is why the city of Baltimore has to be extra careful in its disposal of hazardous waste materials. People have a right to be educated on the safety issues involved with living in a city which has a high rate of hazardous materials passing through their communities. It is you responsibility as a resident to do your part in prompting a healthy living environment within you own dwellings. Your families will be safer and there will be less occurrences of air pollution.

New Incentive Block Grants Coming From The U.S. Department of Housing and Urban Development

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

President Obama recently passed a new Recovery Act in a continued effort to stimulate community development and enhance job growth. On September 23, 2009, U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan allocated some of these funds to over 500 communities in need across the country. The total awarded was $620 million dollars. This is just a portion of the American Recovery and Reinvestment Act totaling $1billion. Last July, this program distributed over $360 million in recovery grants. Under this initiative, HUD has gone full force into recovering our communities and producing viable jobs for U.S. citizens.

Revitalizing neighborhoods, creating suitable living environments, and providing affordable housing contributes to our goal of overall sustainability. Once the economy starts to produce again, jobs return and the housing market stabilizes. This means fewer foreclosures and potentially, more homeowner incentives- especially now that the market for green living is increasing at an unprecedented rate. State and local administrations have received nearly 75% of the funding. It is now up to them to properly funnel it into their respective communities.

The good news is, funding for responsible projects with contracts acquired through a bidding process, are available within 120 days of the grant agreement. Investing in the crumbling infrastructure of our economy is now a huge focus for our administration. This generates maximum economic benefits in the long term. Every dollar spent through this HUD-certified Act can be reviewed and tracked on the Recovery Act website.

Americans will be more at ease seeing where their money is going and what it is being used for. Federal leaders can be held accountable now. Business opportunities and job growth is achieved through housing rehabilitation and the construction/improvement of public-use facilities. Hopefully, this will be the start of our economic revitalization on a sustainable level.

Buy Local, Support Your Community

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

One way to be involved in your neighborhood and promote community is through buying local. “Buying local” can mean many different things but a basic definition is supporting independently-owned businesses rather than larger, chain stores. Additionally, another aspect of buying local includes buying produce that is grown nearby, rather than shipped hundreds or thousands of miles.

You can find out more about buying local in Baltimore through the educational campaign Buy Local Baltimore. Their website elaborates on several reasons that buying local benefits the community. For instance, when shopping at local businesses more money goes into the local economy which in turn can make our neighborhoods a better place to live.

Some common misconceptions about shopping at independently-owned businesses instead of chain stores are that it is both inconvenient and expensive. However, shopping at local businesses can also mean better service. In addition, shopping at a smaller store or farmers market often means buying more of what you need and less wasteful spending on items you may end up throwing out. Check out Buy Local Baltimore’s business directory for a list of local businesses and discounts.

A great way to buy local this fall is to shop at one of the several farmers markets in the Baltimore area. I recently went to one of the Baltimore farmers markets and got bags full of fruits and vegetables for just ten bucks. Not only do farmers markets have great deals, but the experience is fun. Wandering outside through the several food and craft vendors can be much more enjoyable than a dreaded grocery store trip.

AEI and NHS of Baltimore Launch Borrow and Save Program (small loans for East Baltimore Residents)

Baltimore, MD.

In an attempt to battle the use of so-called “Pay Day Loans” and “Cash Advances” in low income neighborhoods, the Baltimore Alliance for Economic Inclusion (BAEI) and member nonprofit Neighborhood Housing Services of Baltimore, Inc. (NHS) announced a new pilot loan program on September 24, 2009 during a press event.

The press event was hosted by NHS on Park Avenue in Baltimore and included Robert W. Mooney, Deputy Director, Consumer Protection and Community Affairs, Division of Supervisor and Consumer Protection, Federal Deposit Insurance Corporation (FDIC); Maryland Commissioner for Financial Regulation Sarah Bloom Raskin; Baltimore City Council President Stephanie Rawlings-Blake, Baltimore City Housing Commissioner Paul Graziano, and other dignitaries, as well as members of BAEI.

The Borrow and Save Loan Program is a pilot program designed to help low-income families and individuals break the continuous cycle of borrowing from “payday loan”, “check cashing” or “cash advance” vendors, many of whom charge as much as 26% interest for clients in need of “fast cash”.

The most recent research conducted by NHS of Baltimore in 2008 shows the ratio of traditional banking institutions to check cashing and pay day lending centers varies greatly by neighborhood in Baltimore depending on the area median income (AMI). The study shows some disturbing trends:

• Neighborhoods with AMI of $60,000 and above have 1.6 times more traditional bank and credit union storefronts per population than neighborhoods with AMI of $30,000 or below
• Check cashing centers are 5x more prevalent in those same low income neighborhoods than in the higher income neighborhoods

BAEI and NHS of Baltimore see a clear correlation between household income and the use of check cashing centers for banking needs, instead of safer, traditional banking institutions. Individuals and families who are traditionally banked are typically more financially stable and solvent with a better understanding of budgeting and saving.
To qualify for the program, individuals must be:
• A resident of the East Baltimore area- zip codes include: 21202, 21205, 21213, 21224, and 21231
• Have some form of steady income (i.e. job, unemployment, disability, etc.)
Participants will have the opportunity to borrow from $300 up to $1,000 and will be allowed to pay the loan back over the course of one year.

How to obtain a Borrow and Save Loan:
• Loans may be obtained by qualified individuals through Neighborhood Housing Services of Baltimore, Inc. at 819 Park Avenue, Baltimore, MD 21201
• Loan participants are required to participate in one-on-one counseling and financial fitness education to learn about saving, budgeting and using traditional banking institutions.
• Eligibility and payment cycles for each participant will be determined and monitored by one of NHS of Baltimore’s trained, not-for-profit loan officers
• To help break the cycle of loans/cash advances, participants have the opportunity to open a savings account to which NHS of Baltimore will match $5 dollars every month of what they save, as an added bonus and extra incentive to save

To apply for the Borrow and Save Loan today, please call 410-327-1200.
To read other articles about the program click these links. Baltimore Sun, Baltimore Business Journal

Housing Resource Day in Baltimore County

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

I recently participated in Housing Resource Day in Baltimore County. In addition to NHS, several other housing-related organizations were present to speak with homeowners and to offer assistance and resources. Individuals could also participate in workshops on topics such as homebuyer education.

One woman I spoke with expressed her gratitude towards all of the assistance available concerning homeownership matters. She explained that when she was a first-time homebuyer, twenty-five years ago, these resources for homeowners and potential homeowners were not around.

However, despite this woman’s insights into all of the currently available resources, the event had low attendance. This got me thinking that perhaps many homeowners are unaware of all the free and reliable resources that are available to them. This point emphasizes the importance of outreach on the part of non-profit organizations. We cannot just assume that people are aware of, or will take advantage of our services.

Nevertheless, most individuals who did attend the event had a positive experience. Furthermore, I had the opportunity to learn more about the other organizations that participated in the Housing Resource event.

Attention: Dundalk Water Main Break Victims

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

The unfortunate occurrence in Dundalk over the weekend has opened a new gateway for housing scams. Victims of this disaster are in need of hefty repairs and insurance assistance. Unfortunately, scam artists take situations such as these to capitalize upon the needs of the community. Remember to only deal with a licensed contractor. Proof can be shown through their home improvement license numbers on all their paperwork.

Another point of interest is not to pay more than one-third of the total contract price up front. Any initial pay above this is illegal in the state of Maryland. They know people can become desperate for help during an unexpected disaster. Not everyone has all the capital necessary to pay for costly repairs. In order to avoid a potential scam, the best sources to go to for information are the Baltimore City Office Help line: 410-685-0123 and The Maryland Insurance Administration (MIA): 410-468-2340.

In addition, here are some MIA tips associated with disaster recovery:

Make sure you understand and clarify with your insurance agent, what is covered and what is not.

Take as many photographs and video footage documentation as possible to assist your insurance agent with assessing the damaged areas.

If relocation is necessary, make sure the insurance company knows where to reach you.
Keep all your receipts for any emergency repairs and/or temporary living expenses.

Most importantly, if your insurance company denies any part of your claim due to a disaster, do not be discouraged, you may qualify to file for federal relief under the government’s disaster act.

Become Apart of Your Neighborhood, Join a Community Association

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Having recently moved to Baltimore, I have a lot to learn about the city and the many neighborhoods. In my work as an Outreach Coordinator, I have been learning about neighborhoods within the city through research and a bit of time wandering throughout the city. However, in order to truly become part of my new community, I realized that I need to do more than just research online or stroll through my neighborhood.

One way that I decided to get more involved was to go to a community meeting in the area I live. Attending a neighborhood association meeting is a great way to meet neighbors and get involved in your community. Working with fellow residents towards common goals both allows you to be aware of what is going on in the community and it is empowering.

From attending the meeting in my neighborhood, I gained knowledge about pertinent issues in my community. I began to form relationships with my neighbors. Now I am more equipped to discover what my role can be in making the neighborhood a better place to live. Being at the meeting showed me that everyday interactions and conversations with local residents has the potential to teach me so much more than what any book or website could tell me.

Do you know what is going on in your neighborhood? Try attending a local meeting – meet neighbors, find out what issues concern fellow residents, and get involved. We all have unique skills, experiences, and connections that we can contribute to enhance our communities. Check out the Baltimore Housing website for a list of dates for upcoming community meetings. You can also find a group near you using Baltimore City’s Community Association Directory.

Congressman Elijah Cummings' Foreclosure Event Broadened My Perspective

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

This past weekend, my colleagues and I were fortunate enough to participate in a free foreclosure prevention event held in Baltimore. It was unlike anything I had experienced in the past. My expectations as a volunteer were completely altered once I began working.

The morning started out fairly commonplace. Once the doors opened, the reality of the desperate need for housing services hit home for me. There were approximately 100 people waiting outside even before the event opened. By mid-morning, there was a line of people around the building. We estimated 1500 people showed up trying to fight for their homes.

I encountered people from all walks of life and situations. One of my duties was to manage the enormous crowd who tried to rush all of the lenders. I took some time throughout the day to speak with individuals and families about their particular experiences in this recession. There were three families whom I took personal interest in over the course of the day.

The first lady I spoke with ran up to me and begged me to help her. She had been in a dispute with her lender for 8 months to no avail. She felt she had run out of options and no one would hear her case. It is interesting to note, this woman was fully employed and received a decent salary, however she was the victim of an Adjustable Rate Mortgage (ARM). Her partner had also lost his job due to the recession. She tried to work something out with the bank but she said they would not return her calls or respond to other forms of attempted contact.

Surprisingly, a number of people complained about not being able to connect successfully with their lenders via telephone. This is why they chose to come to the event instead and seek help from the pro-bono attorneys present at the event. Another couple told me they had driven three hours to be there because they felt they had no other options. A third person told me she would chain herself to the building until someone helps her out. I overheard quite a few individuals discussing their cases and trying to find alternatives to survive.

I knew a lot of people were facing foreclosure but up until this point, I did not know the level of desperation. Not everyone was able to get the resolve they had hoped for as some cases were more complicated than others. For a few people who were on this side of the coin, I was able to reach out to a number of them and encourage them to contact our office for some help. This brought an air of relief to them in so many ways.

Basically, all people wanted was some encouragement and to know someone cares about them and their families. In all, I am glad this event was held because I saw so many people crying and heard sounds of relief that they had been able to come to a resolution with their lenders. I hope this initiative can continue in the future.

Homeowners Don't Have to Go it Alone

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Today, NPR’s Morning Edition featured a story concerning how busy banks are getting in dealing with foreclosure prevention.

The mortgage crisis has affected thousands of homeowners over the past year. With so many people facing foreclosure, many lenders are now considering loan modifications. Preventing foreclosures not only benefits homeowners and families, it is also beneficial for businesses, real estate and the economy. Some banks, such as Bank of America have hired thousands of new employees to deal specifically with foreclosure and delinquency mitigation.

Unfortunately, some homeowners who want to modify their loans have experienced problems when it comes to actually getting the modification. This emphasizes the importance of utilizing free resources in order to advance the process of loan modification or refinancing. Many people are having difficulties achieving a loan modification from their lender by themselves and it is a good idea to consult a free, responsible, HUD approved counselor for help.

Add Color to the Trees Around Your Home- Knit a Sweater

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

Urban knitting, graffiti knitting, yarn storming, yarn bombing- it's a growing fad. Knitters across the country are knitting graffiti on trees, park benches, light poles and practically anything else you can think of. In Baltimore, it has become especially popular. The picture to the right (courtesy the Baltimore Sun), was taken in Hampden just this past weekend and highlights the budding prevalence of the new urban art form.

What a great way to express your creativity and liven up your front yard. And with the colder months drawing closer, I'm sure the trees will thank you too. However, I will say that if you don't already know how to knit, you may want to practice with a smaller object until you get the hang of it. If you already know how to knit, you'll be churning out sweaters for your trees in no time.

Click here for a template and step-by-step instructions on how to get started, from a veteran knitter.

Loan Modifications a Lucrative Business for Scammers

By: Jason Rich, Community Outreach Coordinator, NHS of Baltimore

While my associates and I were flyering for NHS in Fells Point the other day, we were asked by a muscular man with a beaming smile if we were doing loan modifications.

We said, "Yes, Neighborhood Housing Services offers free counseling to help homeowners obtain a loan modification. Unfortunately, these same free services are being offered by scam companies for thousands of dollars. We are out here trying to get the word out so that people in vulnerable situations don't lose even more money."

Without missing a beat, the young man replied excitedly, "It's great work! I'm about to get into the foreclosure business too. People are making a killing on it right now! You can charge like $1,500 or more for a loan modification!"

Troubled by his response, we replied to him, "OK, but we help homeowners obtain loan modifications for free. Why would a person in financial trouble pay $1,500 for a free service?"

His ever-glowing optimism unrelenting, "Well, it's still helping people!"

"It's not though," we said.

After a brief period of silence that lasted five seconds, but felt like forever, we said our socially acceptable goodbyes and went on with our day. As soon as he was gone, my associate and I looked at each other incredulously. Did he really believe that he would be helping people by taking a large sum of money that they probably don't have to give? Or was he just deluding himself so that he could cash in on the times? Either way, the experience showed us that these scams are coming from every direction indeed, even the boy next door.

If you are facing foreclosure, you may get phone calls, flyers, or e-mails from companies claiming they can save your home if you pay their fee. Don't fall for it. In Maryland, it is illegal to charge consumers up-front fees for a loan modification. These companies are out to scam you.

Neighborhood Housing Services provides reputable, quality loan modification and home-ownership counseling services for free. If you live in the Baltimore area and are facing foreclosure, call us at: 410-327-1200.

10 Most Expensive Neighborhoods in Baltimore

Jamie Smith Hopkins of the Baltimore Sun released a list of the most expensive neighborhoods in Baltimore city yesterday.

1. Homeland: Average price: $549,900

2. Roland Park: Average price: $487,300

3. Guilford: Average price: $471,20

4. Inner Harbor: Average price: $423,800

5. Otterbein: Average price: $361,700

6. Federal Hill: Average price: $323,900

7. Mount Washington: Average price: $313,300

8. Locust Point: Average price: $298,400

9. Bolton Hill: Average price: $293,900

10. Fells Point: Average price: $291,500

10 Most Expensive Places to Live in Baltimore Metro Area

Jamie Smith Hopkins, Real Estate Wonk columnist for the Baltimore Sun, released a list today of the top 10 most expensive places to live in the Baltimore area.

10. Towson (Baltimore County-21204): Average price: $500,300

9. Riva (Anne Arundel County- 21140): Average price: $531,900

8. Phoenix (Baltimore County- 21131: Average price: $542,200

7. West River (Anne Arundel County- 20778): Average price: $587,100

6. Fulton (Howard County- 20759): Average price: $621,800

5. Clarksville (Howard County- 21029): Average price: $622,400

4. Highland (Howard County- 20777) Average price: $666,900

3. Monkton (Baltimore County- 21111): Average price: $668,200.

2. Davidsonville (Anne Arundel County- 21035): Average price: $707,600

1. Glenwood (Howard County- 21738): Average price: $843,700

Baltimore Department of Housing to Crack Down on Permit Violations

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

If you are a homeowner thinking about any construction or repair projects, make sure you are aware of the laws for acquiring a permit. Several regulations exist and as of recently, the Baltimore City Department of Housing stated that they are going to crack down on violations. Punishment could consist of a written warning, or expensive fees. You can read more about the specifics here.

Even less elaborate projects such as building a fence or repairing plumbing, may require you to get a permit before any construction begins. Check here to see if you will need a permit and if you will be able to get it over the counter. If you have any questions about whether or not you need to apply for a permit, call Baltimore Housing's Office of Permits & Building Inspections at 410-396-3360.

There are several reasons why the permit system is in place. Not only does it ensure that city codes are being met, the permit system seeks to preserve the historic districts of the city. Remember, if you are not sure if the work you will be doing will require a permit, call Office of Permits or check out their website to learn more. It is better to be safe than sorry in order to avoid paying those expensive fines.

BGE Offers New Energy Efficiency Incentives for Low Income Homeowners

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

As summer comes to an end, most of us are getting prepared for the cooler season, which is just around the corner. We are all aware of the dreaded energy bills that come with ol’ Jack Frost. Now, BGE has created a program called Limited Income Energy Efficiency Program to make it easier to save energy and utility costs on a daily basis. If qualified, homeowners can take advantage of energy saving services and quality home improvements already included in their BGE service. There are many ways to make a home more energy-efficient. Some examples are as follows:

• Gas boiler repairs for natural gas customers
• Air sealing-(weather stripping, caulking)
• High-efficiency lighting
• Insulation
• Major appliances
• Water heater tune-up, repair or replacement (excluding propane and oil heaters)

To take advantage of this program, a certified “energy advisor” needs to conduct a comprehensive home energy audit to see if your home is eligible for the program. This audit and any follow up improvements, is provided at no additional cost to you. It is a part of your current service agreement. To learn more, click here.