tag:blogger.com,1999:blog-35230874666583564302024-03-08T23:57:59.884-05:00Baltimore Homeownership BlogHelping you endure these trying times by offering vital tips and information about homeownership and financial fitness.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.comBlogger158125tag:blogger.com,1999:blog-3523087466658356430.post-73344487240117264322012-01-19T10:09:00.004-05:002012-01-19T10:17:21.467-05:00Would a Foreclosures-to-Rentals Program Benefit Only the 1%?On December 27, 2011, John Gittelsohn, of Bloomberg News, reported that the Federal Housing Finance Agency (the regulator and conservator of Fannie Mae and Freddie Mac and the regulator of the nation’s twelve Federal Home Loan Banks) had issued an RFP for ideas related to turning a portion of their expansive inventory of repossessed homes into rental units. The government’s strategy seeks to “reduce losses, stabilize neighborhoods and support housing values.” * <br /><br />Among the four hundred-plus “valid” proposals received were submissions from the same financial and investment companies that played a part in the housing bubble and collapse, including Deutsche Bank AG, Fortress Investment Group LLC, Carrington Holding Co., Barclays Capital Inc., and UBS AG. With more than 6 million homes expected to be repossessed by banks by 2016, with Fannie Mae and Freddie Mac servicing more than half of all US home mortgages and with the demand for rentals far outstripping the demand for home ownership, a foreclosure-to-rental program could have a substantively positive effect on the stabilization of real estate values. <br /><br />Or, conversely, is it another opportunity for the same investors who sold the American Dream of home ownership down the river to gamble yet again with the national housing market and the U.S. economy? Will turning foreclosures into rentals in bulk benefit Wall Street more than Main Street?<br /><br />*“Firms Give U.S. Plans to Rent Seized Homes,” by John Gittelsohn, December 27, 2011 12:01 AM ETTue Dec 27 05:01:00 GMT 2011<br /><br />– Susan H. Tifft, NHS of Baltimore Resource Development Committee<br /><br /><a href="http://www.bloomberg.com/news/2011-12-27/deutsche-bank-among-firms-giving-u-s-plans-for-renting-foreclosed-homes.html">Link to the article here</a>Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com29tag:blogger.com,1999:blog-3523087466658356430.post-6333109135554043232011-07-26T11:43:00.003-04:002011-07-26T11:53:58.489-04:00Almost 18? Do you REALLY know the new laws that apply for credit cards?By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />In dealing with growing pains of the teenage years, many children cannot wait until the age of 18. According to them, this is the age where they become officially grown and the sky is the limit, right? Wrong. Yes, at age 18, Americans become eligible to vote, enter the military, serve on a jury and marry without parental consent, in most states. But recent laws have prohibited the milestone of getting a credit card. <br /><br />What many soon-to-be-18-year-olds don’t know is that President Barack Obama signed into law the Credit Card Accountability, Responsibility and Disclosure Act of 2009. The bill restricts credit card issuers from raising interest rates without warning, penalizing customers who pay on time and levying excessive fees. There's also a provision that specifically concerns young people: Under the new law, no one under age 21 can get a credit card unless a parent, guardian or spouse is willing to co-sign or unless the young adult has proof of sufficient income to cover the credit obligations.<br /><br />According to Sen. Barbara Mikulski, D-Md., the bill aims to prevent credit card companies from "targeting college kids to weigh them down with debt before they even graduate.” Research shows that this law should have probably been taken into effect years ago. In April, student loan corporation Sallie Mae released a national study that examines the use of credit by undergraduates. The study found that in 2004, 76% of undergrads had at least one credit card. Today, 84% do. The average amount students say they charged to their credit cards to pay for education expenses (such as school supplies) has increased from $942 in 2004 to $2,200 currently. What's more, 82% of undergrads with cards report that they do not pay off their full balances every month, and the median debt among this group is $1,645, compared with $946 in 2004. <br /><br />Due to the lack of financial literacy steps being taken to educate college students effectively about the pros and cons of credit cards, I think that this policy was long overdue. In Freshmen Seminar classes, they have professors trying to explain the financial advantages and disadvantages of credit cards. Because these professors are not financial experts, students still do not have the proper understanding of credit before they sign up for numerous credit cards. I think all institutions should incorporate a financial literacy course in their curriculums taught by certified advisors. This will save a lot of people’s credit in the long run.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com9tag:blogger.com,1999:blog-3523087466658356430.post-35830362223188658492011-06-22T10:22:00.000-04:002011-06-22T10:23:44.534-04:00Foreclosure Prevention: Be ProactiveBy: Rena Somar, Homeownership Advisor, NHS of Baltimore<br /><br />Why is it important for a borrower to contact a lender and a housing counselor?<br /><br />Contacting your lender is a necessary component in foreclosure prevention, but it can also be very intimidating. Seeking the assistance of a housing counselor provides assurance that there is a trained professional advocating on your behalf as well as uncovering the options that are available to save your home. Typically, the borrower and the housing counselor will make a conference call to the lender. Once it is determined that there is a course of action available to prevent foreclosure, the lender will send you a modification packet in the mail. Most lenders will encourage you to contact a counseling agency to get credit counseling but beware of foreclosure scams. <br /><br />There are, however, some agencies that claim that they can get you a modification, but then ask you for a fee for their services. According to U.S. Department of Housing and Urban Development (www.hud.gov), “Foreclosure prevention counseling and homeless counseling services are available free of charge through HUD’s housing counseling services. Housing Counseling agencies participating in HUD’s housing counseling program are not permitted to charge consumers for these specific housing counseling services”. To report these scams you can visit Loan Modification Scams Alert at www.LoanScamsAlert.com .<br /><br />Once you’ve contacted a HUD approved counseling agency, a counselor will help you complete the modification packet that the lender sent to you. Completing the packet correctly is very important, especially the budget, because it will determine the type of modification you may receive if your packet is approved. Even though you are working with a counselor, the lender usually will contact you and not the counselor. Therefore, it is very important for you to keep in touch with the counselor and lender if there are any changes in your finances or if you receive any notices from the lender. Once a complete packet is confirmed by the lender, it is then reviewed. This process may take anywhere from 30 to 90 days before a final decision is made on the application. Always remember to call your lender every 2 weeks to get an update and always ask them if there are any documents that they need updated. Foreclosure is a difficult and unpleasant experience, but if you don’t ask for help you may lose your home in a foreclosure sale. So if your mortgage is late, don’t wait, call your lender and a housing counselor today.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com13tag:blogger.com,1999:blog-3523087466658356430.post-63837041887261459402011-05-23T10:49:00.002-04:002011-05-23T10:58:27.150-04:00Consumers Be Aware!By: Robert Horton, Loan Officer, NHS of Baltimore <br /><br />All of us have bills; some people have more than others. Due to unforeseen circumstances, some bills are not paid on time or not at all. This could be a temporary situation or a long term one. Regardless of the length of time, a person will be placed in a collection department of a company or a collection agency. When this is done, there are rights that consumers have. <br /><br />The specified time for collectors to call is from 8:00 a.m. to 9:00 p.m. If a call is made prior to 8:00 a.m. or after 9:00 p.m., the collector is in violation of the law. The consumer has the right to file a complaint with the FCC (Federal Communications Commission). <br /><br />A consumer cannot be threatened by a collector in any way. This is a violation of the law. The consumer does not have to listen to any threats from any collector and should report the collector and the company to the FCC.<br /><br />When a person fails to answer the telephone, a message is left on his or her voicemail most of the time. Some messages are funny, some are serious, some long, and some short. A collector is supposed to leave only his or her name, telephone number, and company name. This is appropriate. If anything else is left, this is a violation because the person that the message was intended for may not be the one who listens to it. Information about the debt heard by another on a voicemail is a violation of privacy laws.<br /><br />Collectors are not to discuss a consumer’s debt with another person. This is a violation of federal privacy laws. If done by a collector, he or she and the company are in trouble with the federal government and should be reported.<br />There are more consumer rights, but these are the four most violated by collectors. Consumers must be aware of their rights at all times. If you feel that your consumer rights are being violated, you can contact the FCC to file complaints.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com9tag:blogger.com,1999:blog-3523087466658356430.post-40852194738688720012011-05-02T09:35:00.001-04:002011-05-02T09:40:44.957-04:00Home Values: How Your Neighbors Can Hurt The Value of Your HomeBy: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />When people think of bad neighbors, they simply think of nuisances who you may have to see as you come and go. What consumers don’t know is that bad neighbors aren’t just annoying, they can cost you real money when it’s time to sell your home. <br /><br />An overgrown yard, peeling paint, and clutter can easily knock 5-10% off the sale price of your home. If you are looking into buying a property and the neighbor’s yard looks as if the may be a <a href="http://en.wikipedia.org/wiki/Compulsive_hoarding">hoarder</a>, you probably should reconsider. If you have already purchased a property and neighbors become a problem later, there are several things you can do: <br /><br />Approaching your neighbor in a friendly, good manner is always a good start. A nice way to suggest that your neighbors do some maintenance on their property is refer them to free or low-cost services that will help them keep up their property. <a href="http://www.habitat.org/default.aspx?tgs=NS8yLzIwMTEgOTozODozNiBBTQ%3d%3d">Habitat for Humanity</a> is one of several organizations that have programs offering exterior painting, landscaping, weather-stripping, and minor repairs to low income home-owners. A lot of local governments offer these programs as well. <br /><br />When dealing with this kind of issue, it is very important to find out if your sloppy neighbors are tenants or owners of the home. If the person in the home is a tenant, the first thing you should do is track down the owner. A real estate agent can help you do this or you can contact your county’s <a href="http://www.dat.state.md.us/">property-tax assessor’s </a>office. After you identify the owner, a letter needs to be written to them that is complete with photos of the problem and a request in action to solve the problem. <br /><br />Another resource you can use is a <a href="http://en.wikipedia.org/wiki/Homeowner_association">homeowners association</a>. If you have a homeowners association, which most people do, you can request that it take action. Your city or county’s public health department may be able to step in if trash or unsanitary conditions are a part of the problem. <br /><br />If none of these options work, you can always add features to your property to make up for neighbors problems. Putting up a privacy fence or tall hedge could downplay the issue.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com5tag:blogger.com,1999:blog-3523087466658356430.post-56450504847778581102011-03-21T11:20:00.001-04:002011-03-21T11:30:44.158-04:00Social Networking and Your NeighborhoodBy: Raevyn Jones, Marketing Coordinator, NHS of Baltimore <br /><br />It’s no secret that neighborhoods flourish due to the efforts of their residents. In today’s world with people who are very selective about which neighborhoods they will reside in, a simple community clean-up or festival every now and then may not be enough to make people want to live in your community. <br /><br />When you think of Baltimore city’s ‘eclectic’ neighborhoods, areas like <a href="http://en.wikipedia.org/wiki/Mount_Vernon,_Baltimore">Mt. Vernon</a>, <a href="http://www.fellspoint.us/">Fells Point</a>, <a href="http://www.historicfederalhill.org/www">Federal Hill</a> or <a href="http://www.cantoncommunity.org/">Canton</a> may come to mind. However, these are not the only places in Baltimore where the good times roll. This is where neighborhoods need to find a medium to share the excitement of their neighborhood with others. ENTER: <a href="http://weblogs.about.com/od/bloggingglossary/g/SocialNetwork.htm">social networking</a>. <br /><br />Social networking sites such as <a href="http://topics.nytimes.com/top/news/business/companies/facebook_inc/index.html">Facebook</a>, <a href="http://topics.nytimes.com/top/news/business/companies/twitter/index.html">Twitter</a>, and <a href="http://www.crunchbase.com/company/foursquare">Foursquare</a> are changing how we operate these days. These sites are great methods to give your neighborhood a way to interact with prospective residents in addition to your current residents. <br /><br />When considering a neighborhood to live in, people want to know what that neighborhood has to offer. For example, are there certain necessary stores nearby, hangout spots in the area, and people with children want to know if there are things for kids to do. <br /><br />One of the best ways to let people know about the cool spots in your area is through Foursquare. Foursquare is a location-based social networking site that can be used on smartphones to “check in” at different venues. Foursquare is a great way to make people aware of the attractions in your neighborhood and how popular they are with the residents. <br /><br />Before moving to a neighborhood, people also want to know a bit of information about the type of residents that already live there. This is an excellent way to make Facebook work for your community. By creating a business page, potential residents can get an insight to what type of people already live in the community and what is going on in the area. How many friends your neighborhood page has on Facebook and Twitter can also give prospective residents an idea of how involved people in the community are. <br /><br />Hopefully community organizers will realize that people are no longer moving into neighborhoods based on word-of- mouth marketing and befriend the social networking epidemic. With a housing market that is still in an unsure state, when people buy in certain neighborhoods they may not able to sell and move out as quickly as they want to if things get to that point.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com2tag:blogger.com,1999:blog-3523087466658356430.post-27536389194545833632011-02-28T14:29:00.001-05:002011-02-28T14:33:18.957-05:00The Federal Deficit: How will this affect you?By: Felix-Torres Colon, Executive Director, NHS of Baltimore<br /><br />Many Americans consider the <a href="http://money.cnn.com/2011/02/28/news/economy/economists_federal_deficit_worries/?cnn=yes">Federal deficit</a> to be the most important economic problem of our time. In response to this problem, the House of Representatives has proposed a series of cuts in the housing field that are draconian. We are not taking a position on the need for a balanced budget or the reining in of government spending, but we thought all of you should know what impacts some of these proposed cuts could have on NHS and our community.<br /><br /><a href="http://www.hud.gov/offices/cpd/communitydevelopment/programs/">Community Development Block Grants (CDBG)</a><br /><br />CDBG is a federal program that funds a wide variety of community and economic development programs at the local and state level. The program offers local and state governments a wide latitude of ways to invest these funds. They are used to fund everything from housing counseling to infrastructure improvements. The House has recommended a 63% cut. If passed by the Senate, the NHS would have to lay off over half its staff. We would no longer be able to help families become homeowners, stop foreclosures or lend to clients.<br /><br /><a href="http://portal.hud.gov/hudportal/HUD?src=/i_want_to/talk_to_a_housing_counselor">Housing Counseling</a><br /><br />The need for fair unbiased information about home buying is greater than ever. The economic crash was driven by bad mortgages to uninformed borrowers. Counseling is one of the proven ways to avoid this event from happening again. The House has zeroed out the counseling budget, this means NHS would have to lay off the majority of counselors. Hundreds for families would no longer be able to get the training they need to make the best decisions for their future.<br /><br /><a href="https://www.hmpadmin.com/portal/index.jsp">Home Affordable Modification Program (HAMP)</a><br /><br />The House is currently considering ending the program. Although this program is not perfect, it can be fixed. HAMP is currently one of the best tools we have to prevent foreclosures. If HAMP is abolished, hundreds of families in Baltimore will lose their homes.<br /><br />These are tough times which call for tough decisions, but they have to be smart decisions.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com2tag:blogger.com,1999:blog-3523087466658356430.post-59390540901417054612011-02-22T12:32:00.001-05:002011-02-22T12:40:21.403-05:00Housing: How To Invest Your Tax ReturnBy: Raevyn Jones, Marketing Coordinator, NHS of Baltimore <br /><br />Whether or not you have filed your tax return, how you will spend your tax refund always comes to mind around this time. Investing some money from your <a href="http://en.wikipedia.org/wiki/Tax_refund">tax refund</a> is one of the best ways to spend it. However, before you make the decision to invest your tax return, you should think about how your refund fits into your investment strategy. For homeowners or people looking to become homeowners, this refund could have a long term impact. <br /><br />One of the biggest things you may want to consider when thinking about investing is your housing fund. In order to receive the best possible <a href="http://www.interest.com/">interest rate</a> on a house and avoid <a href="http://www.themoneyalert.com/mortgageinsurance.html">private mortgage insurance</a>, it is smart to have a good amount of savings for your down payment. Other programs and housing incentives can assist you with your <a href="http://financialplan.about.com/od/realestatemortgages/a/savedownpmt.htm">down payment</a>. <br /><br />Using your tax refund to eliminate current debt is another good investment if you are looking to buy a home. Eliminating debt with the highest interest rate will cost you less money in interest in the long run. With current credit card interest rates usually being 14% at the minimum, paying off your debt is an excellent investment. The higher your <a href="http://en.wikipedia.org/wiki/Credit_score">credit score</a>, the better deal you will be able to get on a house. <br /><br />If you are a homeowner, investing in your home may be the best investment that you will ever make. There are many affordable ways of investing your tax refund to increase the value of your home. Upgrades and improvements to the kitchen or bathroom are great ways to maximize a return on the investment of your home. This investment could prevent major problems down the road as your house gets older. Also if for some reason you ever choose to sell your home, you have increased the value of it. Renovations to your home may also be written off on your tax return for the following year. <br /><br />Another good investment for homeowners is paying down the <a href="http://www.investopedia.com/articles/pf/05/022405.asp">principal of your mortgage</a>. Contributing additional money to your mortgage will allow you to pay the loan off sooner and you can save thousands of dollars in interest over the life of the loan. Interest rates are currently lower than ever, so if you are eligible to refinance your hope this may be a good option as well. <br /><br />Although a tax refund cannot change your future by itself, it can have a long-term financial impact. For more ideas on how to invest your tax refund, you may want to opt to take a <a href="http://www.nhsbaltimore.org/financial_fit.shtml">free financial fitness class</a>.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com2tag:blogger.com,1999:blog-3523087466658356430.post-82519964174479081662011-01-26T12:12:00.001-05:002011-01-26T12:20:17.604-05:00It’s Never Too Early: Kids Can Be Financially Fit Too!By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore <br /><br />It should come as no surprise to anyone that there are many benefits to saving money at a young age. Children can use this money to save for college, back-up savings for adulthood, or even to buy their first car. Although saving money is not easy, it may be easier to for children to risk the temptations than adults.<br /><br />With the current state of our economy, many kids are making the decision to save money at a young age. I believe that as soon as children begin to receive allowance, parents should initiate a <a href="http://au.pfinance.yahoo.com/calculators/savings-plan-simulator.html">savings plan</a>. This plan should consist of long term goals and short term goals. <br /><br />The first step to saving money is setting a savings goal. This goal will determine how much you save every week or bi-weekly when you receive your <a href="http://www.kidsmoney.org/allart.htm">allowance</a>. An effective way to determine your savings goal is to figure out how much you want to have by a certain date. For example if you want to save at least $300 a year, your savings goal would be roughly $25 per month. <br /><br />After the savings goal is initiated, parents should open up a <a href="http://en.wikipedia.org/wiki/Savings_account">savings account</a> for their child. Because of the lower fees credit unions offer, this may be the better option for a child’s savings account. <a href="http://www.creditunion.coop/cu_locator/quickfind.php">Credit Unions</a> also serve as the better option because the parents must be with the children if they want to withdraw money. <br /><br />As an alternative to getting an allowance, teens may want to consider <a href="http://www.essortment.com/all/waysforkidst_rvlg.htm">other ways to make money</a>. Some of these options may include babysitting, lawn mowing, selling baked goods, shoveling snow, flyer distribution, selling Avon products, or summer positions with organizations like YouthWorks. <br /><br />A big help to ensure that children will save money is for parents to be role models to their children. Parents may want to sit down with their kids and discuss with them the benefits of saving. For example, statistics on how much quicker a person can buy a house based off the money they save or being able to travel out of the country. Also, taking a <a href="http://www.nhsbaltimore.org/financial_fit.shtml">financial fitness</a> course with your teenage child could be a big help. This financial fitness class will teach your kids how to manage money while still living on a budget, most importantly the class is free of charge. <br /><br />Regardless of how old one is, financial fitness will always be an important factor. The earlier children understand this, the better off they will be in the long run. For more information about Financial Fitness courses, please contact <a href="http://www.nhsbaltimore.org/">Neighborhood Housing Services of Baltimore</a>.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com6tag:blogger.com,1999:blog-3523087466658356430.post-73719314959623381652011-01-04T10:12:00.002-05:002011-01-04T10:26:34.166-05:00BE TAXWISE!By: Operations Department, NHS of Baltimore<br /><br />As a new year begins, this is the time to begin thinking of how to be financially savvy and save for your rainy day. Knowing the Ins and Outs to building assets for your family’s future - even your own - is critical during these rough times. As such, participate in a <a href="http://www.nhsbaltimore.org/financial_fit.shtml">financial fitness workshop</a> to find new and innovative ways to shop, save and invest. But while thinking about your future, stop by our office to get your taxes prepared and to receive information about literacy workshops. At our site, we will offer clients (those making below $49,000) the opportunity to open savings accounts, purchase savings bonds and receive direct deposit of their refund into their accounts. The service is FREE through the <a href="http://www.baltimorecashcampaign.org/">Baltimore CASH Campaign</a>!<br /><br />Now that the new year has started, its time for families and individuals to pull out those well organized receipts and hoarded papers from 2010. While this may be a cumbersome task, at least you will see a benefit from your madness. For those who are not itemizing this year; your process is plain and simple, just present the <a href="http://www.irs.gov/pub/irs-pdf/fw4.pdf">W2</a>(s) and Social Security Cards for you and your dependents. For incentives this year, there will be the usual <a href="http://www.irs.gov/individuals/article/0,,id=96466,00.html">Earned Income Credit</a>, <a href="http://www.irs.gov/newsroom/article/0,,id=106182,00.html">Child Tax Credit and Dependant Care Expense</a>. And, Homeowners who have gone through foreclosure will have the opportunity to write off their debts – to include credit cards. This can only happen if your Lender/Creditor has cancelled your debt to which you would have received a letter or statement showing the amount written off. Another incentive is <a href="http://www.energy.gov/taxbreaks.htm">Energy Efficiency</a>; if you purchased and installed an energy efficient furnace, windows, doors, air conditioning units, etc. you may qualify for a credit this year. You MUST have all receipts to document your purchase and installation.<br /><br />Where there is good news, there is Bad news. First-time homeowners that received an $8000 credit in 2008; now is the time to begin paying back that money. It can be done in installments over a period of time until paid in full. This is a line item on the tax return this year. Sorry; it was not a gift.<br /><br />In order to get detailed information regarding any of the items mentioned above please visit the <a href="http://www.irs.gov/">IRS website</a>.<br /><br />NEWS: Interested in knowing how new tax laws affect your bottom line; <a href="http://calculator.taxpolicycenter.org/">click here</a>.<br /><br />Tax Calculator<br />The calculator is a tool to help you understand how current tax policy affects real families and what would happen if we changed that policy. With this version, you’ll be able to compare three alternative tax policies to see how different taxpayers would make out in either 2010 or 2011: <br /><br />• 2010 law with all of the 2001-2003 tax cuts and the 2009 stimulus tax provisions still in place; <br />• 2011 law with scheduled expiration of the 2001-2003 tax cuts (often called the "Bush tax cuts"); <br />• tax law in the compromise plan agreed to by President Obama and congressional Republicans that would extend the 2001-03 tax cuts through 2012 and make other temporary tax changes. <br /><br />You can also turn the alternative minimum tax (AMT) "patch" on or off to see how raising the exemption affects whether taxpayers must pay the AMT.<br /> <br />Note: The Tax Calculator estimates the impact of proposed tax policies on typical family status.<br /><br /><br />See you on January 24th for those that are getting <a href="http://www.nhsbaltimore.org/vita.shtml">taxes prepared at our site</a>!<br /><br />Tax Prep Office hours: 10-3p.m. Monday – Friday; 10-1p.m. Saturdays (January 29th – March 5th).Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com6tag:blogger.com,1999:blog-3523087466658356430.post-23338056154679901842010-12-21T10:52:00.002-05:002010-12-21T11:20:41.101-05:00Top 10 Ways To Weatherize Your HomesBy: David Fielder, Rehab Specialist, NHS of Baltimore<br /><br />1. <strong>Install blown-in insulation or fiberglass insulation in your attic.</strong> Also, cut foam insulation to fit in between floor joists if the room is over a crawl space. You will need some adhesive to make the foam stick in place. The insulation keeps the warm air in at winter time and the cool air in at summer time.<br /><br />2. <strong>Close up any air leaks with spray foam or caulk.</strong> When the forecast is for wind, check doors, windows and around basement walls for air leaks. You may also want to call <a href="http://www.baltimorecity.gov/Residents/CityServices.aspx">Baltimore City’s Weatherization program </a>at 443-984-1066 for assistance in sealing air leaks and other energy saving measures. This is a FREE program to income eligible folks.<br /><br />3. <strong>Install weather stripping around doors and windows.</strong> You can find many products at the hardware store to take care of air leaks. These products mostly have adhesive backs that you can peel and stick on windows and doors. Another good product is the sheet of plastic that covers your windows. Applying this to your window takes a little patience but when done correctly no one will know it is there.<br /><br />4. <strong>Wrap hot & cold water pipes with foam insulation & install a hot water tank blanket.</strong> The insulation prevents the hot water pipes from losing heat and will keep the cold water pipes from freezing. The hot water tank blanket will prevent the tank from losing heat.<br /><br />5. <strong>Install programmable thermostat.</strong> Decrease the thermostat 2 degrees in winter and increase 2 degrees in summer. This will save a few dollars each month that will add up over the year. <br /><br />6. <strong>Have your furnace checked and cleaned each year. </strong> Most energy providers provide a maintenance service to customers. If you have a boiler, you should drain water once a week. This keeps the boiler clean and free from rust which shortens the life span of the boiler.<br /><br />7. <strong>If you have a forced air furnace with duct work, insulate the ductwork.</strong> The U.S Department of Energy reports that a heating system can lose 60% of the heated air before reaching the vents in your rooms. If you have old ductwork, having the system cleaned will help your indoor air quality.<br /><br />8. <strong>Clean the gutters from leaves and debris.</strong> Make sure the water is flowing from the gutter to the downspout an out. In cold weather ice dams can build up at the gutter. Melting ice water has no place to go but in to your house and down your walls. Keeping gutters clean will prevent this from happening. Water damage walls can be costly to fix.<br /><br />9. <strong>Reverse the direction of ceiling fans. </strong> There is a switch on the body of the fan to reverse the direction the fan rotates. When you reverse the direction of the fan, it will push the warm air down. Don’t forget to reverse it in the summer.<br /><br />10. <strong>Make this the season to check you smoke detectors and carbon monoxide detectors.</strong> Baltimore City has had several large fires recently. This should be enough incentive to make sure all detectors are working and have fresh batteries. Better yet, have a certified electrician install hard-wired detectors in your house one per floor. You will not have to check batteries again.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com3tag:blogger.com,1999:blog-3523087466658356430.post-19722389095005039412010-12-07T10:03:00.001-05:002010-12-07T10:20:08.439-05:00Is Buying a Home One of Your New Year's Resolutions?By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />Due to the fact that many homebuyers look to purchase in the summer months, there can be many advantages to purchasing at the end of the year. During this time you can take advantage of motivated sellers trying to meet a quota before the end of the year, also you will have readily available moving help because movers are not typically busy during this time. <br /><br />If you close on your new home by December 31st, you can deduct your <a href="http://en.wikipedia.org/wiki/Equity_(finance)">equity costs</a> and property taxes on your income tax return. Because you are bound to pay a lot of <a href="http://mortgages.interest.com/content/calculators/mortgage_calculator.asp">interest</a> at the beginning of the year, this can save you a lot of money. As the year comes to a close, most builders and realtors off excellent incentives to buyers so that they can sell as many houses as possible. Buyers should definitely take advantage of these types of offers. <br /><br />Another benefit to home shopping at the end of the year is that many current homeowners sell their homes around this time in an effort to get a <a href="http://taxes.about.com/od/taxplanning/qt/home_sale_tax.htm">tax deduction that will help them purchase a newer home</a>. This is where the prospective homebuyer has to put their negotiation skills into play. Because these current homeowners are so eager to sell their homes, you may be able to get them to go down on the asking price. If you feel that it is risky to handle the deal on your own, you should consult with a <a href="http://www.nhsbaltimore.org/counseling.shtml">HUD certified homeownership advisor</a> or a real estate professional. <br /><br />If you are seriously considering purchasing a home before the year ends, it is important that you don’t wait until the last minute to start looking into your options. If you wait too late, your choices will be very limited. You should begin looking around September to give yourself enough time to find the right home. Also during the month of September, you should consider attending <a href="http://www.livebaltimore.com/">Live Baltimore’s </a>Homebuying Fair. If you are looking to move into the Baltimore City area, this program offers tours and great incentives.<br /><br />Regardless of when you plan on buying a home, you should always make room to take a <a href="http://www.nhsbaltimore.org/homebuyer_ed.shtml">homebuyer education course</a> and get counseling from a HUD certified homeownership advisor. This will make your process a lot less stressful, and will be beneficial in the long run as well.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com1tag:blogger.com,1999:blog-3523087466658356430.post-59201399080062789512010-11-30T12:40:00.002-05:002010-11-30T12:46:43.623-05:00Keep Your Finances In Shape This Holiday SeasonBy: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />When it comes to holidays many of us sometimes get above ourselves with gift-giving and it takes a hefty toll on our budgets. Many people have a crazy misconception that its “priceless” to create a picture perfect holiday experience. This thinking will put a strain on your budget and the last thing you want to do is start off a new year with your finances in shambles. <br /><br />All of the financial troubles that come with the holidays can be avoided if you think with your head and not your heart throughout the process. A significant step is making sure that all of your major bills are paid before you start holiday shopping. Things like rent or mortgage, gas, electric, water, and phone bills should be prioritized over a hefty price tag on a gift you brought. Also things like food and any medication you may need should also be kept in mind. <br /><br />One major “no-no” when it comes to the holidays is spending important bill money because you are depending on a monetary gift that you think you are not guaranteed to get. The first rule of being financially fit is to be smart with your money. <br /><br />There are some extra things that we use in our day-to-day lives that we may be able to part with for a month. These things include cable, high speed internet, dining out, and monthly memberships and subscriptions. With innovations like <a href="http://www.netflix.com/">Netflix</a> and <a href="http://en.wikipedia.org/wiki/Smartphone">smartphones</a>, a month without cable and desktop internet is not so bad. <br /><br />Another way to save money during the holiday season is to make an agreement with friends and family to exchange gifts <a href="http://www.dealio.com/after-christmas.html">after Christmas</a>. This may take away some excitement, but the huge savings will be helpful to your pockets. <br /><br />Most of all we need to all keep in mind that the important thing about the holidays is to create memories that will last a lifetime, not who is giving the best gift. It should not be hard for anyone to understand that we have all been affected in some way by the economy.<br /><br />With that said,<br /><br />Happy Holidays to you and your family from NHS of Baltimore!Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com2tag:blogger.com,1999:blog-3523087466658356430.post-38733044013737144762010-11-16T10:26:00.003-05:002010-11-16T11:06:22.160-05:00Being Prepared When "Life Comes At You Fast..."By: Jacqueline Wilson, Loan Processor, NHS of Baltimore <br /><br />State Farm insurance company has a commercial that depicts mayhem coming upon a person with a slogan “life comes at you fast.” When we see this commercial we can relate because we all have experienced unexpected mishaps from time to time. We try to have <a href="http://en.wikipedia.org/wiki/Rainy_day_fund">“rainy day funds"</a> but we all know that these are very hard economic times and the amounts put away for the rainy day funds seem to get smaller and smaller. As a result, the extra funds to resolve these emergencies and continue to function are not available. <br /><br />Such mishaps as when the car gets towed and you need it right away to get to work, or the car dies never to be revived and a down payment is needed to purchase a new one. Perhaps you receive a large utility bill or some other unexpected event occurs, there are no savings and the regular bills have to get paid, there is no extra. These are the unexpected occurrences that cause people to consider <a href="http://www.ehow.com/about_4679831_definition-payday-loan.html">payday loans</a> as a way out because “life indeed does come at you fast”.<br /><br />In the past, the payday loan companies went unnoticed and this industry really grew. Nationwide there are 25,000 of these companies ranging from small mom and pop shops to large chains. In Missouri alone there are about 1500 payday loan stores and many of the loans have an 422% <a href="http://www.investorwords.com/242/APR.html">APR</a>. Check into Cash in Cleveland Tennessee has an APR of a massive 459 %. What this means is that the consumer writes a check for $300.00 and actually gets $255.00 in cash, the difference of $45.00 goes to fees, it is reported that some of these loans are flipped as many as 8 times and escalate from $325.00 to as high as $793.00 before it is paid. In California alone (a place that has been hit hard by the recession) consumers borrow 2.5 billion dollars a year from payday loan lenders. In an attempt to curve these practices some credit unions and lenders have begun to offer small dollars loans at annual rates as low as 12%.<br /><br />Taking into account the numbers stated above, the residents of Baltimore City that utilize payday loan services can really appreciate the <a href="http://www.nhsbaltimore.org/borrow_save.shtml">Borrow and Save Program </a>which is offered by Neighborhood Housing Services of Baltimore, Inc., The program was originally offered in the East Baltimore region – however, due to high demand the program has now been <a href="http://www.sun-sentinel.com/business/yourmoney/bs-bz-ambrose-micro-lend-20101109,0,1115386.story">expanded to accomodate consumers citywide</a>. The program was launched in August 2009 to help borrowers break the perpetual short-term borrowing cycle, establish healthy banking relationships, gain personal money management skills, and learn the benefit of savings and asset building.<br /><br />The program provides loans between $ 300.00 and $ 1,000.00 with repayment terms of six months to a year at an APR of 7.99%. Borrowers who currently do not have a banking relationship are required to open a bank or credit union account to receive the loan. Borrowers are also expected to take a <a href="http://www.nhsbaltimore.org/financial_fit.shtml">financial literacy course</a>, this course is offered free of charge by NHS of Baltimore in an effort to educate consumers so that they do not have to resort to loans at all. <br /><br />For information about the Borrow and Save program, please contact Jacqueline Wilson at 410-327-1200 ext. 117.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com4tag:blogger.com,1999:blog-3523087466658356430.post-91406421646101529012010-10-29T09:30:00.003-04:002010-10-29T09:56:59.517-04:00Fear of HomeownershipBy: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />Despite <a href="http://www.nytimes.com/2010/10/08/business/08mortgage.html">President Obama’s recent veto to a bill</a> that could speed up foreclosure and Maryland’s new home loan interest rate being at an <a href="http://www.dhcd.maryland.gov/Website/About/PublicInfo/NewsEvents/newsDetail.aspx?newsID=291">all-time low of 3.875 percent</a>; many Marylanders are still in fear of becoming a homeowner. With the nations foreclosure rate still growing, I must admit that not a day goes by without me worried about <a href="http://en.wikipedia.org/wiki/Foreclosure">foreclosure</a> affecting me or a family member in the future. <br /><br />I think most people’s perception of homeownership is that it is very hard to buy a home yet so easy to lose it. In essence, homeownership is perceived as a goal you work so hard for and it can be taken away in an instant. However, this perception could not be further from the truth. Of course there are challenges along the process to homeownership, as there are with every major decision we have to make in our lives. <br /><br />In most cases of foreclosure, the person has lost their home for reasons that could have easily been avoided. For example, many people looking to own a home fail to receive proper <a href="http://www.nhsbaltimore.org/homebuyer_ed.shtml">housing counseling</a> at the beginning of the homeownership process. Lack of appropriate knowledge about homeownership that is acquired through housing counseling has caused many people to enter <a href="http://www.huffingtonpost.com/2009/03/07/new-wave-of-federally-bac_n_172815.html">bad mortgages</a>, buy homes they cannot afford, and make crucial mistakes in the loan modification process etc. Also a main factor in foreclosure is people waiting too long to seek help. If you are <a href="http://www.nhsbaltimore.org/foreclosure_prev.shtml">facing foreclosure</a>, you should seek help before feeling sorry for yourself. <br /><br />Although homeownership is something you have to work hard for, the goal of sustainable homeownership is not far-fetched. There are an overwhelming amount of programs and incentives that assist with down payment and closing costs. Through the <a href="http://activerain.com/blogsview/1523684/downpayment-and-settlement-expense-loan-program-dselp-">Down Payment and Settlement Expense Loan program</a>, buyers are eligible for $5000 to help with costs. Other homebuying incentives are listed on the <a href="http://www.livebaltimore.com/resources/incentives/">Live Baltimore</a> website. <br /><br />I still have my worries but the knowledge of various counseling, homebuyer education, and foreclosure prevention has eased some of my worries. I believe that if the right steps to homeownership are taken from the beginning, the foreclosure rate would not be as high as it is today. When I am ready to buy my first home, the first thing I will do is make sure I have a homeownership advisor by my side in the process.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com1tag:blogger.com,1999:blog-3523087466658356430.post-82055752506210270962010-10-18T10:45:00.004-04:002010-10-18T11:13:12.504-04:00So you've decided to buy a home....now what?By: Julienne Joseph, Homeownership Advisor, NHS of Baltimore <br /><br />Buying a home is one of the largest investments you will ever make. Once you have made the decision to purchase a home, there are steps that need to be taken. Being informed and prepared for the process alleviates the anxiety and stress of the process.<br /><br /><strong>Step 1: Getting Your Ducks In a Row</strong><br /><br />Once you have determined that this is the time to buy, start gathering the documentation your lender may need in order to secure your financing. <br />- Homebuyer Certificate. Enroll and Complete a Homebuyer Education Course. Certification may be required (prior to submitting an offer) in order to receive incentives offered by City or State Organizations. <br />- Your Last Three Years Tax Returns and w-2's<br />-Most recent 30 days of pay stubs<br />- 2 most recent statements for all checking, savings, 401k, IRA and investment accounts<br /><br />These documents will help your Loan Officer accurately evaluate your ability to repay your mortgage and to determine how much of a sales price you can afford.<br /><br /><strong>Step 2: Contact a Lender</strong><br /><br />A lender is the professional who will provide you with the products and programs a particular bank offers to suit your particular financing needs. Speaking with a lender in the beginning of the process saves time, gas, and money by letting you know just how much buying power you have before you start your search.<br /><br /><strong>Step 3: Consult A Real Estate Professional</strong><br /><br />Your real estate professional is a key player in the home buying process. They will help you search for the property you wish to buy and represent you in the negotiations of sales price, closing costs, repairs, etc. After receiving your pre-approval from the lender, a letter is issued and given to the real estate professional of your choice to show them that you have secured financing. A pre-approval tells your real estate agent/realtor how much home you can afford. The letter is essential because it narrows your search so the real estate professional won't waste time searching for homes that are over or under your approval limit. At this phase, you will tell your real estate professional all that you are looking for in a home (i.e. number of bedrooms, bathrooms, square footage, etc.). Based on the criteria you provide, they will search their database of available properties and present the homes that meet your needs. Once selected, you and your agent will set an appointment to actually view the property. <br /><br /><strong>Step 4: Make an Offer</strong><br /><br />You have found a property that you would like to purchase. You and your agent will now submit a contract to the seller proposing the price you are willing to pay for the property. It is common that upon the submission of the contract to the seller, you will provide an Earnest Money Deposit or an “EMD”. The “EMD” is a sign to the seller that you’re serious about purchasing that home. This deposit is held by the broker of your real estate professional until closing and credited towards your closing costs. If the offer is accepted by the seller, the contract is then deemed “ratified”. “Ratification” means that you are now in a legally binding contract that states that you agree to buy the property from the seller and the seller agrees to sell the property to you. <br /><br /><strong>Step 5: Choose An Attorney or Title Company</strong><br /><br />The title company will be responsible for preparing the documents on your closing day (i.e. The deed, mortgage note, etc.) If you do not have an attorney your lender or real estate professional can recommend one.<br /><br /><strong>Step 6: Get A Home Inspection</strong><br /><br />After ratification, you will want to get a home inspection. A home inspection will inform you of any repairs that need to be made to the property. It's always wise to get an inspection to ensure that you are aware of the condition of the property.<br /><br /><strong>Step 7: Order an Appraisal</strong><br /><br />An appraisal will always be ordered by your lender. The appraisal is ordered on your behalf in the name of the bank to make sure that the collateral (the property in this case) is worth what the contract has stated.<br /><em>*Rule of thumb*. Hold off on ordering the appraisal until you receive the home inspection report. Doing so will avoid you having to pay for an appraisal on a property that you may determine is too damaged to purchase. If the appraiser comes out, before or during your home inspection, you may be responsible for covering the cost of the appraisal even if you choose not to buy the property.</em><br /><br /><strong>Step 8: Perform the Final Walk-Thru</strong><br /><br />The inspections are done and your financing is secure. The day of (or the day prior) to closing, you and your agent will take a final look at your property to ensure that it is in satisfactory condition. Once the final walk-thru is done, you are ready to close.<br /><br /><strong>Step 9: Prepare to Close</strong><br /><br />The title company or attorney has completed your closing package and the final figures are generated. Your attorney will provide you with the amount you will need to bring to closing.<br /><br /><strong>Step 10: Receive Your Keys</strong><br /><br />All of the documents are signed and you are now a proud homeowner. The real estate agent or attorney will be in possession of your keys until the signing is completed. At that point, they will present you with your keys and the home is now yours!Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com3tag:blogger.com,1999:blog-3523087466658356430.post-87169348441268405782010-09-30T16:15:00.002-04:002010-09-30T16:29:40.083-04:00Consider homeownership to be an investment.....By: Sunny Cooper, Special Projects Manager, NHS of Baltimore <br /><br />More recently, there has been a plethora of articles and commentary as to the <a href="http://dailycapitalist.com/2009/08/06/home-ownership-to-decline-for-a-decade-according-to-new-study/">decline of homeownership</a> and its decreased financial <a href="http://www.mypersonalfinancejourney.com/2010/04/tax-benefits-of-home-ownership.html">profitability to the end-Homebuyer</a>. While buying a Home may not reap the huge financial rewards of a few years ago, it is still an investment.<br /><br />Buying a home is an “Investment in You”<br /><br />It’s your achievement.<br />It’s a testament that you did it (made a financial investment) – all by yourself…<br />You worked hard, saved, went to classes and got your credit in order. <br />That in itself is your accomplishment. This accomplishment is represented in something tangible – A home.<br /><br /> <br /><br />Buying a home is an “Investment in Your Community”<br /><br />You made a commitment to invest in a particular neighborhood by buying a home.<br />You maintain this investment by:<br />- Cutting the grass,<br />- Planting fall bulbs for spring tulips,<br />- Petitioning for speed bumps on your street along with your neighbors,<br />- Checking in on an elderly neighbor.<br /><br />These neighborly interactions create a sense of community thus increasing the value of your home.<br /><br /> <br />Buying a home is an “Investment in - Your City”-<br /><br />The city needs investors who are committed to its success in order for it to thrive.<br /><br />Potholes are filled, parks are cleaned and school buildings are improved – in part on funding received from <a href="http://positivearticles.com/blog/3274/where-does-the-property-tax-money-go/">property taxes</a>. A strong invested citizen base attracts new businesses that “want” to move to the area. It attracts retail opportunities such as grocery stores and movie theatres. Lastly it demands public services necessary for the health and welfare of all citizens alike.<br /><br />Gone are the days that the purchase of a home was merely for a – “5 yr Investment Strategy”…<br /><br />Gone are the days that a home was purchased to be used as “Bank” with which to withdraw equity to fund other jumpstarts…<br /><br /> <br /><br />Hopefully we are returning to the ole’ retro idea – Buying a Home in which to actually “Live”.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com7tag:blogger.com,1999:blog-3523087466658356430.post-10800848641853652562010-09-10T09:58:00.002-04:002010-09-10T10:59:02.637-04:00Homeowners Insurance: What do you need to know?By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />When it comes to buying a home, most people work very hard to purchase the home and everything in it. It can take many years to build up a home from scratch. People should keep in mind that like anything else in your life, your property is at risk to dangers that are beyond your control. This could potentially wipe out everything you have spent years working hard for. These are primary reasons why one should have <a href="http://www.investorwords.com/2336/homeowners_insurance.html">homeowners insurance</a>. <br /><br />Homeowners insurance coverage can offer a peace of mind, and will enable you to pick up the pieces and recoup financial losses in the event that your home or belongings are damaged and destroyed. When <a href="http://www.pueblo.gsa.gov/cic_text/housing/12ways/12ways.htm">taking out homeowners insurance</a>, it is very important to ensure that you are providing yourself with sufficient coverage. The first step to getting homeowners insurance is to find out <a href="http://realestate.yahoo.com/Homevalues">what your home is actually worth</a>. In addition to estimating the worth of your home, there are other factors to be aware of when purchasing a home. <br /><br />Shopping around for good insurance prices and coverage plans is imperative. Many insurers have been raising rates to make up for losses they suffered during the financial crises. Also, insurers are competing for new customers meaning some of them are cutting better deals for new policy holders than for existing ones. This is why when shopping around, it is important that you find an insurer who is loyal to you.<br /><br />Another issue that homeowners run into is having <a href="http://insurance.freeadvice.com/information/home/article/43">too much insurance coverage</a>. It is very common for policies to contain inflation –protection provisions that automatically increase your coverage amount. Usually that would be a good thing, but now that construction costs have fallen, not so much. <br /><br />Homeowners should also be aware of their reputation when seeking homeowners insurance. The same way lenders check your credit score to find out what amount to charge you, insurers look to see what claims you have filed in the past. At times, insurance records can be full of errors. Checking your insurance records before you seek coverage is necessary. <br /><br />When selecting a <a href="http://en.wikipedia.org/wiki/Deductible">deductible</a>, you should go with the highest deductible you can afford and use your savings to cover the cost of minor repairs. Filing a claim for every broken window or minor damage can increase your premiums by 10% to 15%. Increasing your deductible from $500 to $1000 can lower your annual premium as much as 25% according to the Insurance Information Institute.<br /><br />One of the most important factors when it comes to homeowners insurance is the <a href="http://www.wikihow.com/Research-the-History-of-Your-House">history of the house</a>. Though it seems unfair, claims associated with the property before you buy it can result in you paying more than you usually would. You can get information on past claims by asking for a copy of the seller’s CLUE disclosure report. Although you may be able to negotiate with the seller, you are stuck with the history of the house you buy.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com8tag:blogger.com,1999:blog-3523087466658356430.post-79409123208110261682010-08-19T10:04:00.003-04:002010-08-19T10:30:09.580-04:00Short SalesBy: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />A <a href="http://www.realtor.org/library/library/fg335">short sale</a> is a sale of real estate in which the proceeds fall short of the balance owed on the property’s loan. Short sale occurs when a borrower cannot pay the mortgage loan on their property but the lender decides that selling the property at a moderate loss is more efficient than pressing the borrower. Using the short sale process as an alternative to foreclosure is easier for both parties because it allows the bank to avoid <a href="http://www.therealestatebloggers.com/%20/housing-general/freddie-mac-says-typical-foreclosure-costs-60000-dollars/">hefty fees </a>and it will not hit the borrowers credit report as hard as a foreclosure would. <br /><br />Before agreeing to do a short sale, borrowers need to make sure that they have a precise understanding of its terms. The most important thing borrowers need to know is that the short sale does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, this is known as the <a href="http://homebuying.about.com/od/foreclosures/f/120908_Def-Judg.htm">deficiency</a>. <br /><br />Although it may initially seem as if there are no disadvantages to a short sale, borrowers should weigh out all options before agreeing to go through with a short sale. The main advantage to using short sale as an alternative is that it is less <a href="http://ezinearticles.com/?The-Damage-Foreclosure-Can-Do-to-Your-Credit-Score&id=1355000">damaging to one’s credit </a>and more helpful to future mortgage applications than a foreclosure. Disadvantages to short sales include the extensive paperwork requirements, loss of equity in home, and property tax will still be payable among many others. <br /><br />When considering a short sale, borrowers also need to be aware of <a href="http://www.businessweek.com/news/2010-06-10/banks-face-short-sale-fraud-as-home-flopping-rises-update2-.html">fraud</a> that can occur during the short sale process. Many business journals have reported that lenders have been engaging in fraud during the short sale process. The fraud involves lenders in second position demanding kickbacks in the form of cash payments from the home buyer or real estate agent. These payments are fraudulent because they are not disclosed anywhere on the closing documents or <a href="http://en.wikipedia.org/wiki/HUD-1">HUD 1 statement</a> which makes them in violation of <a href="http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm">RESPA</a> (Real Estate Settlement Procedures Act) rules. <br /><br />If a borrower begans having financial problems and thinks that their home may be in jeopardy, the first thing they should do is seek the advice of a homeownership advisor. There are many non-profit organizations that offer<a href="http://www.nhsbaltimore.org/counseling.shtml"> free counseling</a> and have specialty in dealing with foreclosure prevention and the terms of a short sale.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com1tag:blogger.com,1999:blog-3523087466658356430.post-24370769615781005892010-07-28T14:04:00.003-04:002010-07-28T15:00:39.709-04:00Renters Living In Homes Facing ForeclosureBy: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />In today’s economy, <a href="http://www.merriam-webster.com/dictionary/tenants">renters and tenants</a> are now being affected by foreclosure nearly as often as homeowners. The mortgage crises began in 2006 and resulted in millions of Americans losing their homes to foreclosure. Now there are thousands of renters, who without warning, are discovering that there rented house or apartment is now owned by a bank who wants them out because the property is being foreclosed upon. <br /><br />Many tenants have no clue that their building has been taken at <a href="http://homebuying.about.com/od/4closureshortsales/qt/foreclosures.htm">foreclosure</a>. Because of this, they unfortunately continue to pay rent to the former owner who pockets the money but no longer maintains the building since they do not own it. New owners often refuse to make repairs and sometimes fail to pay utility bills. This makes life almost impossible for tenants as long as they are living in the foreclosed property. <br /><br />Before May 20, 2009, most renters had no rights and lost their leases upon foreclosure. However, this changed when President Obama signed the <a href="http://www.nlihc.org/doc/701-704-Public-Law-111-22.pdf">“Protecting Tenants at Foreclosure Act of 2009.” </a>This legislation states that leases would survive a foreclosure, meaning that the tenant could stay at least until the end of the lease and that month-to-month tenants would be entitled to 90 days. This protection law applies to <a href="http://www.gosection8.com/section_8_affordable_housing/maryland_section_8_affordable_housing_rentals.aspx">Section 8</a> tenants as well.<br /><br />A tenant who holds a <a href="http://www.mrlandlord.com/lease/">lease</a> and has to move out so that new tenants can move in may opt to sue their former landlord in small claims court. This is possible because after the lease is signed, the landlord is legally bound to deliver the rental for the entire lease term. When a landlord defaults on a mortgage, which sets in motion the loss of a lease, the tenant can sue for the damages it causes. <br /><br />Today when a rental home is being foreclosed, tenants no longer have to feel like they are between a rock and a hard place. Due to these new rights, being a tenant in a foreclosed home does not mean you are instantly out on the street. There are also other resources that these tenants can utilize for help in these situations. Tenants can speak with a <a href="http://www.nhsbaltimore.org/index.shtml">HUD certified housing counselor</a> who will offer responsible, quality advice at no charge. For general information or referrals, tenants can contact the <a href="http://www.bni-maryland.org/programsandservices/tenantlandlord/index.htm">Baltimore Neighborhoods, Inc. Tenant- Landloard Hotline. </a>Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com3tag:blogger.com,1999:blog-3523087466658356430.post-84683179196893493382010-07-08T13:08:00.002-04:002010-07-08T13:17:12.647-04:00Maryland’s Homestead Tax CreditBy: Sunny Cooper, Special Projects Manager, NHS of Baltimore<br /><br />The <a href="http://baltimore.about.com/od/onlyinbaltimore/a/homesteadcredit.htm">homestead tax credit</a> is a program brought on to help homeowners deal with large assessment on their main residence. The way the homestead tax credit works is that it limits the increase in taxable assessments each year to a fixed percentage. According to state law, every county and municipality is required to limit taxable assessment increases to 10% or less each year. Taxpayers should make sure they are aware of the homestead <a href="http://www.dat.state.md.us/sdatweb/homestead_percent.html">caps for each local government</a>. <br /><br />This tax credit does not limit the market value of the property as determined by the <a href="http://www.msa.md.gov/msa/mdmanual/25ind/html/06asses.html">Department of Assessments and Taxation</a>. It is a credit calculating on any assessment increase exceeding 10% (or the lower cap enacted by the local governments) from one year to the next. The credit is calculated based on the 10% limit for purposes of the State property tax, and 10% or less (as determined by local governments) for purposes of local taxation. In other words, the homeowner pays no property tax on the market value increase which is above the limit.<br /><br /><br />Taxpayers who wish to receive the homestead tax credit, should also be mindful of the new application requirements. This tax credit requires that all homeowners submit to a <a href="https://sdathtc.resiusa.org/homestead/">one-time application</a> to establish eligibility for the credit. The application form will be in an assessment notice mailed to a third of the homeowners at the end of December for the next three years. New purchasers of residential properties will also receive this form. <br /><br /><br />The homestead tax credit will only be granted if certain conditions were meant during the previous tax year. Conditions include that the property must not have been transferred to new ownership, there had been no change in the zoning classification requested by the homeowner resulting in an increased value of the property, and the previous assessment was not clearly erroneous. A further condition is that the dwelling must be the owner’s principal residence and the owner must have lived in it for at least six months of the year, including July 1 of the year for which the credit is applicable, unless the owner was temporarily unable to do so by reason of illness or need of special care. An owner can receive a credit only on one property---the principal residence.<br /><br />If you have been denied the homestead tax credit, you may appeal the decision if you feel that you are eligible. To appeal you must contact the Central Office for the Homestead Tax Credit Program. A final denial of a Homestead Tax Credit by the Central Office may be appealed within 30 days to the Property Tax Assessment Appeal Board in the jurisdiction where the property is located.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com6tag:blogger.com,1999:blog-3523087466658356430.post-57618077140726165292010-06-18T10:51:00.002-04:002010-06-18T11:01:00.973-04:00Renting vs. Buying a HomeBy: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />One of the biggest financial debates of all time is arguably the topic of <a href="http://realestate.yahoo.com/calculators/rent_vs_own.html">renting vs. buying</a> a home, which one is better? As June is National Homeownership Month, many columnists are putting out articles maintaining that it is more advantageous to be a buyer instead of a renting.<br /><br />A huge misconception is that the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on mortgage. However, what people fail to realize is that when it comes to renting vs. buying, the tax incentives for homeowners can save them a significant amount of money. For example, a renter may start out paying $800 per month with annual increases of 5%, a homeowner on the other hand can purchase a home for $110,000 and pay a monthly mortgage of $1,000. With the tax savings of homeownership, after six years the homeowner’s payment will be lower than the monthly payment of a renter. <br /><br />Other advantages to homeownership are that it builds stability, people are free to change décor and landscaping, and you do not have to depend on other people to maintain the property. The only advantages to renting as oppose to homeownership is that it is much easier to move and there is little or no responsibility when it comes to maintenance.<br /><br />Before people make the decision of whether to rent or own a home, they should utilize their <a href="http://www.nhsbaltimore.org/counseling.shtml">resources</a> and find out which is better for them. Talking to a homeownership advisor or simply taking a <a href="http://www.nhsbaltimore.org/financial_fit.shtml">financial literacy</a> course can help you figure whether you should become a homeowner and if your finances will allow you too.<br /><br />In the meantime, many people who have accomplished the dream of homeownership are celebrating, as June is national homeownership month. Homeowners can visit the <a href="http://portal.hud.gov/portal/page/portal/HUD">HUD website </a>to find local homeownership events in their area.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com3tag:blogger.com,1999:blog-3523087466658356430.post-1257955476096756862010-06-01T12:34:00.001-04:002010-06-01T12:40:59.426-04:00Foreclosure: Disadvantage or AdvantageBy: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />Unfortunately with the state of Maryland having one of the highest <a href="http://www.investorwords.com/2039/foreclosure.html">foreclosure </a>rates, many residents this year will face foreclosure and wonder what the next step is. The first step in dealing with foreclosure is to completely understand the process, and know what advantages and disadvantages it may offer. The most significant thing to be conscious of is that foreclosure is not the end of the world. <br /><br />Although being faced with foreclosure is never pleasant, people who face foreclosure today are in a much better position than people who have faced it in the past. Because of the <a href="http://www.nuwireinvestor.com/articles/foreclosure-forecast-to-grow-54118.aspx">increasing amount of foreclosures</a> in many areas across the nation, the range of options and resources for those in such situations has significantly increased. From federal government to local government, as well as a variety of community organizations and <a href="http://nhsbaltimore.org/">non-profits</a> who specialize in foreclosure prevention; there are numerous efforts and programs aimed at keeping struggling homeowners in their homes and out of foreclosure. <br /><br />Today lenders are more willing to help homeowners through a difficult period than they were in the past. One of the most important things is to act fast as soon as you begin to struggle with your mortgage and thing you may be facing foreclosure. There are real options today in regard to foreclosure prevention and losing your home is not the only answer. <br /><br />For those who feel that there is no other solution to their homeownership problems other than foreclosure, they need to understand that walking away from a mortgage that you still may be able to pay has consequences. One of the major cons to foreclosure is that your <a href="http://www.foreclosurefish.com/blog/index.php?id=235">credit score will be affected</a> and may be impossible to get credit for a while. <br /><br />Many people who walk away from their mortgages have the misconception that they can simply raise their credit scores again by paying all of their bills on time and eventually finance another home purchase. Typically homeowners who face foreclosure due to economic hardship, such as a job loss or divorce, normally must wait two to five years before buying a home again. On the other hand, people who walk away may face double that time frame before they are able to purchase another home. <br /><br />Facts show that the advantages to foreclosure are slim to none in comparison with the long list of disadvantages. It is in the best interest of anyone facing foreclosure to act immediately by seeking <a href="http://nhsbaltimore.org/foreclosure_prev.shtml">counseling</a> or programs that deal with foreclosure prevention. Simply settling for foreclosure without a fight will have disadvantages at the moment and for the long haul.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com11tag:blogger.com,1999:blog-3523087466658356430.post-34254004344483045092010-05-17T14:06:00.003-04:002010-05-17T14:25:12.824-04:00Why Make the move to Baltimore?By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />As children get out of school and many families begin to plan their summer vacations, many other families prepare for an even bigger adventure- <a href="http://www.movecentral.com/articles/Moving/MovingintheSummer.asp">moving to a new home</a>. Summer is the most popular time for Americans to move. When the new summer season starts, many parents take advantage of their children’s summer break and use this as a time to <a href="http://www.city-data.com/city/Baltimore-Maryland.html">relocate</a>. <br /><br />For families who are looking to move to a new area, <a href="http://www.greaterbaltimore.org/Portals/0/Press%20PDFs/DR%20041808_Quality%20of%20Life_BM.pdf">Baltimore</a> should be at the top of their lists. Baltimore offers a unique blend of historic charm, and its diverse communities are welcoming to people of all backgrounds and interests. In addition to being known for its ethnic neighborhoods, Baltimore has recently become known for its innovations in the preservation and restoration of urban homes. <br /><br />Unlike many other coastal cities, the cost of housing in Baltimore has only risen modestly over the years. Other than saving money, Baltimore has a vast amount of recreational attractions that should make people want to move to this city. In addition to the<a href="http://www.marylandzoo.org/"> Baltimore Zoo</a> and being a devoted sports town, Baltimore is close to many other recreation outlets such as Six Flags America and Ocean City. Just a thirty-minute drive form Washington D.C, Baltimore residents have access to a multitude of free museums and the National Zoo. <br /><br />Before making the decision to relocate to Baltimore, families should look into the many resources that Baltimore has available. To assist you in your research on the city of Baltimore, the <a href="http://www.livebaltimore.com/">Live Baltimore</a> website offers a large amount of information with profiles of different Baltimore neighborhoods so that you can get an idea of which one is best for you. <br /><br />Another important factor before relocation is the cost of living in the area and the job salary. Movers should compare the new cost and salary of living in a new city and make sure it coincides with their budgets. With free <a href="http://www.nhsbaltimore.org/financial_fit.shtml">financial literacy</a> courses at <a href="http://nhsbaltimore.org/">Neighborhood Housing Services of Baltimore</a>, movers are sure to get a proper understanding of Baltimore living and how it relates to their budgets.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com1tag:blogger.com,1999:blog-3523087466658356430.post-34224383129654886252010-05-07T15:15:00.002-04:002010-05-07T15:24:03.732-04:00Maintain Financial Fitness When VacationingBy: Raevyn Jones, Marketing Coordinator, NHS of Baltimore<br /><br />As we move closer to the summer season, many Americans are considering <a href="http://www.expedia.com/daily/theme/vacations/family.asp">family vacations</a>. One of the main issues that arise when going on vacations is that we enjoy ourselves so much they we may become a little out of touch reality and overspend within our budget. <br /><br />Another mistake people make is going on vacations that they cannot afford. Although it is a dream of many of us to go to extravagant places like Paris, London, or Milan; in order to stay within our budget it is important to find cost effective vacations. The first thing families should do is take a look at the <a href="http://www.alwaysfrugal.com/">household budget</a> and then decide how much can be budgeted for a vacation.<br /><br />While saving up funds for vacation, think about a destination. Ask yourself with this vacation be done by plane or by driving? When deciding on a vacation destination it is resourceful to look into information on <a href="http://www.smartertravel.com/travel-advice/season-cost-Five-tips.html?id=11416">off-season travel</a>, promotions, and advanced ticket purchases. Other options like traveling mid-week as opposed to the weekend can save money and traveling with more people in order to split the costs. <br /><br />As tourists areas tend to be very pricey when it comes to food and leisure, finding an <a href="http://www.allinclusiveoutlet.com/">all-inclusive vacation</a> can save lots of money. Areas such as Mexico, Puerto Rico, and resorts in Jamaica offer all inclusive packages which include 3 meals per day at various restaurants, unlimited beverages, 24-hour complimentary snacks, transportation, leisure passes and free activities. <br /><br />If you wish to go on a vacation that is not all-inclusive, it is important to create a budget for when you get to your vacation destination so that you do not overspend. With the help of Neighborhood Housing Services of Baltimore’s <a href="http://nhsbaltimore.org/financial_fit.shtml">financial literacy classes</a>, you can come up with a budget that is appropriate for your particular vacation.Neighborhood Housing Services of Baltimore Inc.http://www.blogger.com/profile/13231881005820738281noreply@blogger.com0