Getting Rid of Deceiving Property Tax Ads in Baltimore

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

Taxes- they are apart of life and we all have to pay them, regardless of our age, our backgrounds, or our aspirations of purchasing glory. When buying a home, property taxes are a huge piece of the budgeting puzzle. Deciding how much you can afford for a home, means not only taking into consideration the cost of the monthly mortgage payment, but the cost of the insurance, taxes and ground rent (if applicable) as well. The principal and interest payments you make toward your mortgage every month are referred to as your P and I. The three latter payments are called your escrow.

For a long time in Baltimore city, it was difficult for first time homeowners to calculate the true cost of the property taxes to be paid for their first home, and many found their calculations were severely off, due to problems surrounding a tax provision known as the Maryland Homestead Credit. This tax credit is given to homeowners who have lived in their home for several years, and re-calculated each year the homeowner lives in the home.

Up until recently, many real estate advertisements were misleading potential homebuyers, by advertising the current taxes being paid on the property instead of the true tax rate. Many homebuyers we severely misinformed when creating their budget, taking into account the wrong tax amounts.

To combat this problem, the city passed a new ordinance last week to ensure more accurate advertising, in order to protect consumers. According to an article in the Baltimore Sun, the new ordinance, which takes effect in three months, disallows advertising the current owner’s taxes and instead requires that figures reflect the property's most recent tax assessment, multiplied by the city property tax rate.

NHS of Baltimore is happy to see consumers getting the right information. Property taxes are the second largest thing homebuyers have to worry about, next to their mortgage. People need to be armed with the right information in order to make informed and responsible decisions when buying a home. If anything good has come from the current housing crisis, it is the return of oversight and accountability in all aspects of the market.

New Credit Bill Lends Support for Consumer Rights

By: Felix Torres Colon, Executive Director, NHS of Baltimore

The President recently signed legislation that reformed the credit card industry. Key provisions included:

Banks can only raise your interest rates if you are 60 days late on your payment. If you pay on-time for six consecutive months, they must return you to your original rate.

You must get 45 days notice of interest rate increases for future purchases.

Payments on credit cards with more than one interest rate must be applied first to the debt with the highest rate.

Young credit card applicants (college students) must be able to repay money borrowed or have parents cosign.

No fees for paying a credit card bill online or through automated phone system.

These changes are all very good for consumers and will help us manage our credit cards better. The key is managing our credit cards. At NHS of Baltimore, we see many of our customers' homeownership dreams derailed or delayed by excessive credit card debt or poor payment histories. Here are some tips to help you with your credit cards and make your homeownership dreams more reachable:

If you can’t afford it, don’t buy it. Only buy items you can pay back in a short time period. The card should be a bridge for your cash flow not a substitute.

Avoid paying unnecessary fees. Review all the fees your bank charges and don’t do anything to trigger them.

Avoid interest payments altogether. Pay your balance in full by the due date.

Minimize interest charges. If you can’t pay your balance in full, make more than the minimum payment every month.

Shop around and compare cards. Cards have different rates, terms, etc: pick the one that works for you.

Use the rewards. If you have a rewards card, you are paying for it. Use them!

Credit cards are a necessary part of life: use them wisely, pay them promptly and keep your balances low. If you do, they will increase your credit score and help you buy a house.

Ms. Sydnor's Housing Rehab Success Story

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

In 2008 NHS of Baltimore proudly began partnering with Park Heights Renaissance, Inc. in their massive revitalization campaign for the Park Heights neighborhood. The project aims to bring new investment and people back into the Park Heights community through several partnerships including the City, PHR, other neighborhood organizations and community stakeholders to rehabilitate existing homes and buildings, as well as to redevelop blighted areas. NHSB’s involvement has been mainly in housing rehab. Thus far, we have successfully provided lending and rehab services to 42 homes in the Park Heights community and are geared up to do several more.

We would like to introduce you to Ms. Lillian Sydnor– community activist, mother, grandmother and friendly neighbor. She has lived in the Park Heights community for 45 years and served as President of the Cold Spring Lane Improvement Association for 27 of those years. Ms. Sydnor has been a strong advocate for the PHR project since its inception and is a proud recipient of the home rehabilitation services provided by NHSB. We refurbished her front porch, built a new deck in the backyard, installed new fencing around the home, replaced both of her basement doors, installed new storm doors in the front and back of the home, replaced her shutters, laid a new sidewalk, and redid the landscaping in her front yard.

“They did an excellent job. The contractors were professional, efficient and timely, and I would recommend NHS of Baltimore’s services to any and everybody,” Ms. Sydnor said. “They are a great asset to Baltimore.”

Ms. Sydnor, says the community in Park Heights is strong and she wouldn’t choose to live anywhere else. “We watch out for each other here,” she said, “my neighbors know to check on me if my porch light comes on at night and doesn’t go off, and I know to do the same for them.” She continued, “NHS of Baltimore’s participation with the Park Heights Renaissance Campaign is helping our community stay whole.”

For more information on the project, click here.

Get Involved With NHS of Baltimore and Give Back to Your Community

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

Are you a current or past client of NHS who has a success story with us and want to give back? Or are you simply an advocate for our mission and want to help support and further the goals of the organization? There are many ways in which you can give back.

We are currently looking for a current or former client to serve on our board of directors. You will have the chance to serve with other top minds from all areas of the housing and economic development field- including government, banking and corporate representatives. You will also be a key voice for the board due to your perspective as a client who benefited from one or many of our services.

If serving on our board isn’t quite the right fit for you, NHS of Baltimore also has a handful of board committee spots open. We encourage anyone from the broader community with knowledge of fundraising, program development policy, marketing and/or non-profit management to join one of our committees. You will be surrounded by board members, staff and volunteers from the community who all share a common goal of furthering NHS of Baltimore’s mission to create and sustain homeownership opportunities through customized lending and consumer education in the Baltimore region.

Furthermore, NHS of Baltimore has volunteer opportunities open from time to time in several areas including, data entry, Spanish language translation, web design and public speaking. We offer several homebuyer education classes a month and we are often looking for realtors and/or banking professionals to come in and speak to our classes about what it takes to buy your first home.

Also, you can feel free to donate monetary or in kind gifts to NHS of Baltimore at anytime throughout the year. We are grateful for all donations- big and small. You can donate online by visiting our website, at www.nhsbaltimore.com, or you can stop in or mail your donation to 819 Park Ave. Baltimore, MD. 21201.

As always, a special thanks to all of our individual and corporate donors/volunteers who already support what we do. We couldn’t do it without you and we appreciate your generosity.

Maryland Housing Counselors Network Conference Brings Together the Best Practitioners in the Field

By: Felix Torres Colon, Executive Director, NHS of Baltimore

I recently had the pleasure to attend Counselor Connection, the Maryland Housing Counselors Network, 2009 conference and annual meeting. The Network is a professional and networking organization of over 70 housing counseling and affordable housing organizations from across the state. The conference was excellent and I drew some important lessons from it.

First, the commitments, passions and skills of the state’s counselors are amazing. I have never seen folks given such an impossible task, stem the foreclosure crisis, take it on with such gusto and creativity. Facing overwhelming caseloads, recalcitrant servicers and no respite in sight, they are doing the job, getting more efficient and making a huge difference. Special thanks go out to Michelle McKiver, Rena Somar, and Shaneece Hudson, our own homeownership advisors.

Second, the scammers and con artists are getting rich off of the misfortunes of our neighbors. These so called loan modification experts or foreclosure rescue services are reeking havoc. Representatives of the Department of Labor, Licensing, and Regulation shared their great efforts to shut them down. They are doing a great job, but scammers are still attracting victims and stealing their money. We need to do all we can to help folks avoid these predators. If you hear anything suspicious or see something too good to be true, call DLLR. The sooner they know about a scam, the faster they can shut it down. Some signs to look out for:

Upfront fees for assistance
Guarantees that loans will be modified
Promises that mortgage principles will be reduced
High pressure sales tactics

Finally, as Tim Adams, Mid-Atlantic District Director of NeighborWorks® America, shared, there is a silver lining to this crisis. Housing counseling is being recognized as a crucial step to preparing homebuyers to make the right choices- leading to sustainable homeownership. Organizations like NHS of Baltimore have said this for years. People are finally listening.

Congratulations to the network for a fine and educational event.

Now That Financial Literacy Month is Over, Stay on Top of Your Finances Year Round

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

As a HUD certified counseling agency, NHS of Baltimore wants to remind people of the importance of staying financially fit all year round. Although April was designated by Congress as Financial Literacy Month, consumers should not be quick to forget the lessons they have learned.

"During April, government agencies, schools, businesses and other organizations were encouraged to engage in programs or activities to raise the nation's awareness of the importance of financial education. With the nation's economic crisis now spanning about 18 months, we have even more reasons to promote financial education not just in April but year-around," said Sandra Thompson, Director of FDIC Division of Supervision and Consumer Protection.

The current recession calls upon each and every one of us to be more frugal and to live within or below our means, so as not to over-extend ourselves. We offer these simple tips to staying on top of your money.

• Create a budget. Examine last month’s bank statement. Create a budget spreadsheet armed with information about your wages, how much you spend each month, and categorize your spending. Expense categories can include: Rent or Mortgage, Gas, Groceries, Utilities, Insurance, Car Payment, Credit Card Payment, and more. After you see how much you are making, how much you are spending, and what you are spending your money on, you will be better able to create a budget that works for you.

• Cut expenses. Going out for lunch or dinner, daily trips to the coffee shop, and more, add up. After creating a budget and examining your spending over the last month, you will likely see expenses that can be cut, which may add up to monthly savings in your bank account. Instead of buying a daily cup of coffee, make a cup at home. Bring your lunch instead of buying it everyday. Cook dinner at home with your family or friends instead of meeting up a few times a week. The combination of coffee at home and a bag lunch a couple of days a week has the potential to save more than $50 each month.

• Tackle debt. Once you cut unnecessary expenses, you may find a little extra money that can be used to tackle any debt you may have. To be truly financially fit, work on paying down and eventually eliminating your debt by paying more than the monthly minimum payment. The monthly minimum payment may barely cover the interest the debt accrues, which means that by paying the minimum each month, it could take more than a dozen years to pay off the debt. By paying even a little more than the minimum, you are working your way toward financial fitness.

• Build an emergency fund. With each paycheck, make an effort to contribute to a savings account separate from your checking account. Each contribution, no matter the amount, builds a cushion for emergencies down the road.

• Enroll in a Financial Fitness course. These courses will teach you money management skills that can help put you on the path to decreasing debt and increasing resources. Financial literacy can also help you become more aware of common pitfalls – including consumer scams and predatory lending practices – and how to avoid them. NHS of Baltimore offers these courses free of charge on a monthly basis.

• Avoid being scammed. If you are facing financial difficulty from foreclosure, job loss, credit card debt, and aren’t sure where to turn for guidance, seek help from a nonprofit, HUD approved housing or credit counseling organization. Avoid scam companies that contact you first and promise to “eliminate debt” in their advertising. Nonprofit organizations have your best interest at heart and will work with you one-on-one to remedy your situation. The old adage, “You get what you pay for,” does not apply with reputable nonprofits.

NHS of Baltimore offers Financial Fitness courses year round, free of charge from a HUD certified counselor. If you are interested in taking a class, call today. 410-327-1200 or click here to view a schedule.