By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore
While there are many things you can do to winterize your home, NHS of Baltimore offers these 5 essential tips that will save you money and maximize your comfort during the winter season.
Insulate Your Attic:
Making sure your attic is properly and tightly insulated will trap more heat in the home and prevent it from escaping through the roof. Be sure your insulation is at least 12 inches thick.
Test and Inspect Your Furnace and Heating System:
Be sure to fire up your furnace at least once before Jack Frost pays a visit, to ensure it is working properly. Also, if you have central heating, have an inspector come to your home at least once a year to ensure that the ductwork is secure and firmly insulated.
Secure Your Windows:
Installing your storm windows when the temperatures begin to fall is an easy way to insulate your home. Replacing old and outdated windows is also important although it can be quite costly. If money is tight try budgeting to pay for a couple windows at a time.
Seal Leaky Areas:
Pinpoint the trouble areas in your home where you can feel drafts coming through. Door and window frames can be caulked easily and should be sealed on both the interior and exterior of your home. Use a door sweep underneath the opening of your door id air is entering through.
Clean Your Gutters:
Too much debris in your gutters when winter comes can cause major issues. It can clog drainage and prevent melting snow from running off properly and away from your home. Instead, it can back up and seep into the home causes water damage and others problems.
NHS of Baltimore offers low-interest, deferrable loans for housing rehab and maintenance to help pay for housing essentials such as new heating, new windows, new roofing and lots more.
Monday, December 1, 2008
Wednesday, November 26, 2008
NHS of Baltimore Helping People Avoid Foreclosure
By: Rena Somar, Homeownership Adviser, NHS of Baltimore
I am currently working with a client who called me on November 5th to help her with her mortgage. Her home was in foreclosure and scheduled to be sold on November 13th. I called her lender to work out some type of modification but they were not willing to work with her until she paid the legal fees. My client does not have an income because she is disabled and does not work. She is currently waiting on her disability check, which is backdated from 2006 due to a legal battle over pre-approval of her disability. Although she has since been approved, she will not receive her check for at least another month.
I called the Department of Housing and Community Development on November 6th and spoke with Jeanne Mullen, Manager of Single Family Collections, who asked me for certain documents, including written authorization from my client, giving me permission to work on her behalf. On November 7th I received a call from Gary Masseaux, Asset Management Officer of DHCD Delinquency Reports, who informed me that my client’s foreclosure sale date was stopped and they have given her 60 to 90 days to bring her mortgage current. This will give her enough time to receive her disability money and pay her mortgage in full.
I am currently working with a client who called me on November 5th to help her with her mortgage. Her home was in foreclosure and scheduled to be sold on November 13th. I called her lender to work out some type of modification but they were not willing to work with her until she paid the legal fees. My client does not have an income because she is disabled and does not work. She is currently waiting on her disability check, which is backdated from 2006 due to a legal battle over pre-approval of her disability. Although she has since been approved, she will not receive her check for at least another month.
I called the Department of Housing and Community Development on November 6th and spoke with Jeanne Mullen, Manager of Single Family Collections, who asked me for certain documents, including written authorization from my client, giving me permission to work on her behalf. On November 7th I received a call from Gary Masseaux, Asset Management Officer of DHCD Delinquency Reports, who informed me that my client’s foreclosure sale date was stopped and they have given her 60 to 90 days to bring her mortgage current. This will give her enough time to receive her disability money and pay her mortgage in full.
Tuesday, November 25, 2008
Real Estate Market Still Safe in Some Places
By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore
An article in Yahoo! today explained there are six places in the United States where the real estate markets continue to thrive and steadily grow. The lucky ones include:
1. Lancaster, PA.
2. Clarksville, TN.
3. Albuquerque, NM.
4. Burlington, VT.
5. Johnson City, TN.
6. Washington, D.C.
Read the full story for details on why these cities are weathering the storm…
An article in Yahoo! today explained there are six places in the United States where the real estate markets continue to thrive and steadily grow. The lucky ones include:
1. Lancaster, PA.
2. Clarksville, TN.
3. Albuquerque, NM.
4. Burlington, VT.
5. Johnson City, TN.
6. Washington, D.C.
Read the full story for details on why these cities are weathering the storm…
Tuesday, November 18, 2008
NHS of Baltimore Offering Free Income Tax Preparation
By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore
Neighborhood Housing Services of Baltimore is pleased to announce we are offering free income tax preparation, during the upcoming season, for taxpayers making less than $42,000 a year. Services will begin in January and will be offered Tuesdays and Thursdays from 4:30pm-8:30pm, as well as Saturdays from 10:00am-5:00pm. Customers will have their taxes prepared by highly trained, well qualified volunteers. Spanish speaking accommodations are available Thursdays and Saturdays by appointment. This program will be made possible by NHS of Baltimore, the Baltimore Cash Campaign and the Volunteer Income Tax Assistance program (VITA). Call NHS of Baltimore and schedule an appointment today- 410-327-1200 Ext. 160. Or visit our website. VITA-- Volunteer Income Tax Assistance
Neighborhood Housing Services of Baltimore is pleased to announce we are offering free income tax preparation, during the upcoming season, for taxpayers making less than $42,000 a year. Services will begin in January and will be offered Tuesdays and Thursdays from 4:30pm-8:30pm, as well as Saturdays from 10:00am-5:00pm. Customers will have their taxes prepared by highly trained, well qualified volunteers. Spanish speaking accommodations are available Thursdays and Saturdays by appointment. This program will be made possible by NHS of Baltimore, the Baltimore Cash Campaign and the Volunteer Income Tax Assistance program (VITA). Call NHS of Baltimore and schedule an appointment today- 410-327-1200 Ext. 160. Or visit our website. VITA-- Volunteer Income Tax Assistance
Tuesday, November 4, 2008
$7,500 Homebuyer Tax Credit Needs Reworking
By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore
It’s no secret. The economic downturn facing the United States right now was triggered by carelessness in the mortgage lending markets. Congress recognized the need for immediate action earlier this summer when they passed the Housing and Economic Recovery, which among many things, offered a $7,500 dollar tax credit to first time homebuyers as a way to stimulate home sales. The question now is-- is it working?
According to an article released last week by the Washington Post, very few first time homeowners have taken advantage of Congress’ tax credit. The largest reason-- the credit essentially amounts to a zero interest, federal loan. Given the current state of the economic crisis, potential homebuyers are extremely weary of loading on more debt.
This is not a good sign for an economy that is in desperate need of pumping up the housing market before it will see an end to the financial mess. Congress is now considering a second rescue bill to shore up the rescue package passed in early October. In addition to more federal oversight and assistance for businesses, the bill would include even more money for homebuyers, upwards of $12,000. However, it is still unclear whether a repayment provision will be included. Many argue this summer's housing bill provided enough money, but needs to be reworked to exclude the repayment requirement.
Cheryl Cassell, our own Assistant Director of Single Family Programs believes the best remedy for the housing market is a tax incentive that does not include a payback provision. “Housing tax credits can be a “hit or miss” in stimulating the housing market. The most recent tax credit proved not to be attractive because of the [the repayment component]. Historically, first time homebuyers generally do not have sufficient savings for a significant down payment. As such, instead of a tax credit with a repayment stipulation; a down payment credit or down payment assistance program would be more effective in stimulating the housing market.”
It’s no secret. The economic downturn facing the United States right now was triggered by carelessness in the mortgage lending markets. Congress recognized the need for immediate action earlier this summer when they passed the Housing and Economic Recovery, which among many things, offered a $7,500 dollar tax credit to first time homebuyers as a way to stimulate home sales. The question now is-- is it working?
According to an article released last week by the Washington Post, very few first time homeowners have taken advantage of Congress’ tax credit. The largest reason-- the credit essentially amounts to a zero interest, federal loan. Given the current state of the economic crisis, potential homebuyers are extremely weary of loading on more debt.
This is not a good sign for an economy that is in desperate need of pumping up the housing market before it will see an end to the financial mess. Congress is now considering a second rescue bill to shore up the rescue package passed in early October. In addition to more federal oversight and assistance for businesses, the bill would include even more money for homebuyers, upwards of $12,000. However, it is still unclear whether a repayment provision will be included. Many argue this summer's housing bill provided enough money, but needs to be reworked to exclude the repayment requirement.
Cheryl Cassell, our own Assistant Director of Single Family Programs believes the best remedy for the housing market is a tax incentive that does not include a payback provision. “Housing tax credits can be a “hit or miss” in stimulating the housing market. The most recent tax credit proved not to be attractive because of the [the repayment component]. Historically, first time homebuyers generally do not have sufficient savings for a significant down payment. As such, instead of a tax credit with a repayment stipulation; a down payment credit or down payment assistance program would be more effective in stimulating the housing market.”
Tuesday, October 14, 2008
Letter to the Editor About CRA
Dear Editor,
This letter is in response to Ed Duffy’s op-ed piece in the Baltimore Examiner, which blamed the current U.S. mortgage and financial crisis on lax lending policies that came as a result of the Community Reinvestment Act of 1977 (CRA). Nothing could be further from the truth.
The current financial crisis is not the result of the extension of credit to low- to moderate-income and highly concentrated minority communities as urged by the CRA. The CRA “is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate.” Those markets can be served responsibly, without creating extraordinary risk for lenders. In fact, for thirty years, NeighborWorks® organizations like Neighborhood Housing Services of Baltimore have helped provide mortgage credit to low-income communities with stellar results.
Many reports appear to have overlooked the fact that the current financial distress is a recent phenomenon created largely by institutions that are not subject to CRA requirements. Over the last several years lending by mortgage bankers and other non-depository intermediaries has eclipsed the production of depository lenders, accounting for more than half of the mortgage loans originated over the past five years. Additionally, a review of data provided by mortgage lenders pursuant to the Home Mortgage Disclosure Act reveals that lenders that are not subject to oversight by a federal banking agency (i.e. not subject to CRA) originated over half of the higher-priced conventional mortgage loans reported in 2005.
CRA did not push banks and other institutions to make loans to unqualified borrowers nor did it encourage them to relax underwriting criteria to the point where they failed to consider a borrower’s capacity to repay the loan.
For more than three decades CRA has encouraged the extension of credit to those with less than perfect credit histories. We know these borrowers can be successful homeowners. A sample of NeighborWorks® network originated mortgages, and new data from state housing finance agency-originated loans shows that these loans made primarily to low- and middle-income households, with average to below-average credit scores, have foreclosure rates significantly better than subprime.
For example, according to the Mortgage Bankers Association, 4.26 percent of subprime loans began the foreclosure process in the second quarter this year. In contrast, the foreclosure start rate for loans within the NeighborWorks network was just 0.21 percent. In fact, NeighborWorks performance is better than the prime market, which was reported by the MBA at 0.61 percent for the same period.
Sincerely,
Felix Torres Colon, Executive Director
Neighborhood Housing Services of Baltimore
This letter is in response to Ed Duffy’s op-ed piece in the Baltimore Examiner, which blamed the current U.S. mortgage and financial crisis on lax lending policies that came as a result of the Community Reinvestment Act of 1977 (CRA). Nothing could be further from the truth.
The current financial crisis is not the result of the extension of credit to low- to moderate-income and highly concentrated minority communities as urged by the CRA. The CRA “is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate.” Those markets can be served responsibly, without creating extraordinary risk for lenders. In fact, for thirty years, NeighborWorks® organizations like Neighborhood Housing Services of Baltimore have helped provide mortgage credit to low-income communities with stellar results.
Many reports appear to have overlooked the fact that the current financial distress is a recent phenomenon created largely by institutions that are not subject to CRA requirements. Over the last several years lending by mortgage bankers and other non-depository intermediaries has eclipsed the production of depository lenders, accounting for more than half of the mortgage loans originated over the past five years. Additionally, a review of data provided by mortgage lenders pursuant to the Home Mortgage Disclosure Act reveals that lenders that are not subject to oversight by a federal banking agency (i.e. not subject to CRA) originated over half of the higher-priced conventional mortgage loans reported in 2005.
CRA did not push banks and other institutions to make loans to unqualified borrowers nor did it encourage them to relax underwriting criteria to the point where they failed to consider a borrower’s capacity to repay the loan.
For more than three decades CRA has encouraged the extension of credit to those with less than perfect credit histories. We know these borrowers can be successful homeowners. A sample of NeighborWorks® network originated mortgages, and new data from state housing finance agency-originated loans shows that these loans made primarily to low- and middle-income households, with average to below-average credit scores, have foreclosure rates significantly better than subprime.
For example, according to the Mortgage Bankers Association, 4.26 percent of subprime loans began the foreclosure process in the second quarter this year. In contrast, the foreclosure start rate for loans within the NeighborWorks network was just 0.21 percent. In fact, NeighborWorks performance is better than the prime market, which was reported by the MBA at 0.61 percent for the same period.
Sincerely,
Felix Torres Colon, Executive Director
Neighborhood Housing Services of Baltimore
Friday, October 3, 2008
Suburban Decline Becoming a Reality
By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore
One lonely, occupied home standing in a sea of abandoned row homes, stretching block after block— children and families sitting on their front steps next to graffitied shells of homes with boarded up windows and crumbling walls. Residents of Baltimore city are all too familiar with these images.
Surprisingly, the images that once plagued metropolitan centers are becoming increasingly common in the outlying suburbs. Yes, the suburbs. New studies and information on suburban decline indicate that McMansions are sitting vacant and acre large plots of land are going undeveloped. According to a story in the Baltimore Sun, many experts contribute this shift in paradigm to the rise of the housing boom and its consequential bust, followed by the current subprime mortgage and lending crisis.
Furthermore, the rising cost of fuel, food and other essentials have caused people to search for alternatives in order to tighten their belts. Urban centers offer public transportation and close proximity to work and leisurely needs, cutting down on commute times and gasoline consumption and putting more money back in the pockets of Americans. The trend of out-migration over the last 40 years appears to be reversing little by little. This is good news for cities and urban centers, however its not so good for the suburbs.
Studies consistently show that crime is higher in communities with a large percentage of vacant and abandoned housing and vacant McMansions and housing developments can no longer hide from this statistic. According to the Washington Post, homes that sit empty due to foreclosure or difficulty being sold by developers have become new safe havens for drug dealers and squatters. After a home is foreclosed, it could sit vacant and un-chaperoned for months before it is auctioned off. This allows drug dealers and traffickers to move into the home unnoticed, using it as a drug lab.
As foreclosures continue to rise, vacant housing in the suburbs is going to create more crime and social problems in suburban areas that have not typically seen these problems before.
One lonely, occupied home standing in a sea of abandoned row homes, stretching block after block— children and families sitting on their front steps next to graffitied shells of homes with boarded up windows and crumbling walls. Residents of Baltimore city are all too familiar with these images.
Surprisingly, the images that once plagued metropolitan centers are becoming increasingly common in the outlying suburbs. Yes, the suburbs. New studies and information on suburban decline indicate that McMansions are sitting vacant and acre large plots of land are going undeveloped. According to a story in the Baltimore Sun, many experts contribute this shift in paradigm to the rise of the housing boom and its consequential bust, followed by the current subprime mortgage and lending crisis.
Furthermore, the rising cost of fuel, food and other essentials have caused people to search for alternatives in order to tighten their belts. Urban centers offer public transportation and close proximity to work and leisurely needs, cutting down on commute times and gasoline consumption and putting more money back in the pockets of Americans. The trend of out-migration over the last 40 years appears to be reversing little by little. This is good news for cities and urban centers, however its not so good for the suburbs.
Studies consistently show that crime is higher in communities with a large percentage of vacant and abandoned housing and vacant McMansions and housing developments can no longer hide from this statistic. According to the Washington Post, homes that sit empty due to foreclosure or difficulty being sold by developers have become new safe havens for drug dealers and squatters. After a home is foreclosed, it could sit vacant and un-chaperoned for months before it is auctioned off. This allows drug dealers and traffickers to move into the home unnoticed, using it as a drug lab.
As foreclosures continue to rise, vacant housing in the suburbs is going to create more crime and social problems in suburban areas that have not typically seen these problems before.
Press Release:Low Income Borrowers Do Better With Homeownership Counseling
A new national loan performance analysis of mortgages made to low income homeowners who have participated in homeownerships education programs through NeighborWorks organizations like Neighborhood Housing Services of Baltimore, shows a foreclosure start rate that is 20 times less severe tan that for the subprime borrowers and three times better than the conventional conforming mortgage market.
“The facts tell the real story,” said Felix Torres, Executive Director of NHS of Baltimore. “The vast majority of mortgages facilitated by NHS of Baltimore and other NeighborWorks organizations across the nation are to buyers with low to moderate incomes and less than perfect credit scores. Yet by providing quality mortgage advice, these homeowners have been able to sustain homeownership during the most severe housing crisis since the Great Depression.”
Comparing foreclosure data provided by the Mortgage Bankers Association, NeighborWorks shows that while its own loan portfolio had a foreclosure start rate of 0.21% in the second quarter of 2008, the overall market’s foreclosure start rate was 1.08%, more than five times as great.
Moreover, NeighborWorks mortgages hold up very well against a comparison to only the conventional conforming market. According to the MBA, the foreclosure start rate for conventional conforming mortgages was 0.61% in the second quarter, compared again to 0.21% for NeighborWorks mortgages.
Between March 1st and June 30th of this year, NHS of Baltimore counselors saw 66 households that were facing foreclosure and of those they were able to refinance 5, modify 24, give an emergency bridge loan to 9, recommend legal action for 3 and initiate a forbearance/repayment plan for 10. Furthermore, NHS of Baltimore has hosted more than 600 households at our homeownership classes and out of those, 80 have become homeowners this year.
“NeighborWorks organizations like NHS of Baltimore have a track record of providing one-on-one mortgage advice, encouraging homebuyers to avoid loans that they can not afford for the long term,” said Kenneth D. Wade, CEO of NeighborWorks America. “That dedication to community stability and strength is the foundation of what we’re doing in the Baltimore region and more than 4,400 communities around the country everyday.”
“The facts tell the real story,” said Felix Torres, Executive Director of NHS of Baltimore. “The vast majority of mortgages facilitated by NHS of Baltimore and other NeighborWorks organizations across the nation are to buyers with low to moderate incomes and less than perfect credit scores. Yet by providing quality mortgage advice, these homeowners have been able to sustain homeownership during the most severe housing crisis since the Great Depression.”
Comparing foreclosure data provided by the Mortgage Bankers Association, NeighborWorks shows that while its own loan portfolio had a foreclosure start rate of 0.21% in the second quarter of 2008, the overall market’s foreclosure start rate was 1.08%, more than five times as great.
Moreover, NeighborWorks mortgages hold up very well against a comparison to only the conventional conforming market. According to the MBA, the foreclosure start rate for conventional conforming mortgages was 0.61% in the second quarter, compared again to 0.21% for NeighborWorks mortgages.
Between March 1st and June 30th of this year, NHS of Baltimore counselors saw 66 households that were facing foreclosure and of those they were able to refinance 5, modify 24, give an emergency bridge loan to 9, recommend legal action for 3 and initiate a forbearance/repayment plan for 10. Furthermore, NHS of Baltimore has hosted more than 600 households at our homeownership classes and out of those, 80 have become homeowners this year.
“NeighborWorks organizations like NHS of Baltimore have a track record of providing one-on-one mortgage advice, encouraging homebuyers to avoid loans that they can not afford for the long term,” said Kenneth D. Wade, CEO of NeighborWorks America. “That dedication to community stability and strength is the foundation of what we’re doing in the Baltimore region and more than 4,400 communities around the country everyday.”
NHS of Baltimore's Partnership With Travelers Insurance
NHS of Baltimore used the grant we received from Travelers to install flood lights and repair exterior lighting in eight backyards facing dark allies and as a result, endured a great deal of loitering and crime. Travelers also provided a seminar to the residents of the neighborhood on how to recognize potential risks in and around their homes and address them properly.
Since the new lighting has been installed, there has been a noticeably significant drop in loitering and crime occurring in the allies behind these homes.
Since the new lighting has been installed, there has been a noticeably significant drop in loitering and crime occurring in the allies behind these homes.
Monday, September 15, 2008
Money, Money, 50 Get Grant Money
By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore
45 minutes into Live Baltimore’s “Buying into Baltimore” Home Fair and Tours and our table was nearly empty. We participate twice annually at the Live Baltimore events and I have yet to see so many people come through the event at one time as I did this past Saturday. The hosts of “Buying into Baltimore” announced that about 900 people had registered for the event and that well over 700 would make their way through the vendor’s floor at Baltimore City College High School.
According to a story in last Wednesday’s issue of the Baltimore Sun, Live Baltimore contributed the upsurge in interest in the event to the special grant being offered to homebuyers who buy into the specific neighborhoods in east Baltimore. The grant, which was made available to the first 50 people who registered for the event and go on to further fulfill the specified requirements, will provide $3,000 to help cover down payments and closing costs. Down payment and closing costs are what often times leave first-time homebuyers feeling like owning a home is out of their reach.
The event was a complete success for NHS of Baltimore. We had over 40 people sign up to take our homebuyer education and financial fitness classes and several more visited our table just to tell us how great their experiences with us has been. As a HUD certified housing and credit counseling organization, many people come to us for their homebuyer education certificates, often times required by the state of Maryland for first-time homebuyers receiving financial aid.
If you did not attend the “Buying into Baltimore” event you truly missed out. Live Baltimore offers the event twice a year, usually once in the fall and once in the spring. I highly suggest you attend at least once and take the tour of the neighborhoods and homes. Baltimore has a lot of potential to offer but that potential will never be achieved until people start believing and investing in this great city once again.
Next spring, NHS of Baltimore hopes you’ll come by our table and say hello.
45 minutes into Live Baltimore’s “Buying into Baltimore” Home Fair and Tours and our table was nearly empty. We participate twice annually at the Live Baltimore events and I have yet to see so many people come through the event at one time as I did this past Saturday. The hosts of “Buying into Baltimore” announced that about 900 people had registered for the event and that well over 700 would make their way through the vendor’s floor at Baltimore City College High School.
According to a story in last Wednesday’s issue of the Baltimore Sun, Live Baltimore contributed the upsurge in interest in the event to the special grant being offered to homebuyers who buy into the specific neighborhoods in east Baltimore. The grant, which was made available to the first 50 people who registered for the event and go on to further fulfill the specified requirements, will provide $3,000 to help cover down payments and closing costs. Down payment and closing costs are what often times leave first-time homebuyers feeling like owning a home is out of their reach.
The event was a complete success for NHS of Baltimore. We had over 40 people sign up to take our homebuyer education and financial fitness classes and several more visited our table just to tell us how great their experiences with us has been. As a HUD certified housing and credit counseling organization, many people come to us for their homebuyer education certificates, often times required by the state of Maryland for first-time homebuyers receiving financial aid.
If you did not attend the “Buying into Baltimore” event you truly missed out. Live Baltimore offers the event twice a year, usually once in the fall and once in the spring. I highly suggest you attend at least once and take the tour of the neighborhoods and homes. Baltimore has a lot of potential to offer but that potential will never be achieved until people start believing and investing in this great city once again.
Next spring, NHS of Baltimore hopes you’ll come by our table and say hello.
Tuesday, September 2, 2008
Mortgage Fraud On the Rise In Buying and Foreclosing
By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore
One might be inclined to think that mortgage fraud would start dropping off as the looming credit and mortgage crisis it helped create, continues to lurch forward. Although it is a reasonable thought, the reality is much different- mortgage fraud has in fact increased over the last year and a half.
According to a story published by the Baltimore Sun, the Mortgage Asset Research Institute recently released a study that shows homebuyers’ fraud was up 40% during the first three months of this year from 2007. Furthermore, Maryland ranked third on the list for highest rates of homebuyer’s fraud in the country, along with Michigan and Illinois.
What this means is that potential homebuyers are submitting false information regarding their income, credit and taxes etc… and are oftentimes encouraged to do so by the lender. As a result, borrowers are procuring mortgages they cannot afford and end up foreclosing on the home in as little as three months later.
For homeowners who are at risk of foreclosure, the situation is even worse. Federal mortgage and foreclosure fraud has doubled over the past year according to a report published by the Federal Bureau of Investigation. Scams offering fast help and quick solutions to mortgage debt coerce the homeowner into signing over the deed to their home without even realizing it.
Key warning signs of fraudulent foreclosure lending include “guaranteed” buy outs, “quick cash” for homes, sale and leaseback, default “cures” and credit repair. These scams can allow the lender to take control of the home and/or steal its equity. Homeowners should are well advised to review all documents in full and seek consultation from an attorney or a HUD certified housing councilor before signing anything.
NHS of Baltimore’s Executive Director, Felix Torres, summarized it best when he said, “Helping people with foreclosure is very difficult; some people have really impossible situations, so if anyone tells you it's going to be really easy and quick and all you have to do is pay a few bucks---run away."
There is some good news however. Homeowners in need of urgent foreclosure intervention can seek help from a HUD certified lending agency such as Neighborhood Housing Services of Baltimore. We offer free consultation as well as fair and responsible lending opportunities. Our main concern is to ensure our clients’ financial success by helping them own a home for the first time, or by avoiding foreclosure.
One might be inclined to think that mortgage fraud would start dropping off as the looming credit and mortgage crisis it helped create, continues to lurch forward. Although it is a reasonable thought, the reality is much different- mortgage fraud has in fact increased over the last year and a half.
According to a story published by the Baltimore Sun, the Mortgage Asset Research Institute recently released a study that shows homebuyers’ fraud was up 40% during the first three months of this year from 2007. Furthermore, Maryland ranked third on the list for highest rates of homebuyer’s fraud in the country, along with Michigan and Illinois.
What this means is that potential homebuyers are submitting false information regarding their income, credit and taxes etc… and are oftentimes encouraged to do so by the lender. As a result, borrowers are procuring mortgages they cannot afford and end up foreclosing on the home in as little as three months later.
For homeowners who are at risk of foreclosure, the situation is even worse. Federal mortgage and foreclosure fraud has doubled over the past year according to a report published by the Federal Bureau of Investigation. Scams offering fast help and quick solutions to mortgage debt coerce the homeowner into signing over the deed to their home without even realizing it.
Key warning signs of fraudulent foreclosure lending include “guaranteed” buy outs, “quick cash” for homes, sale and leaseback, default “cures” and credit repair. These scams can allow the lender to take control of the home and/or steal its equity. Homeowners should are well advised to review all documents in full and seek consultation from an attorney or a HUD certified housing councilor before signing anything.
NHS of Baltimore’s Executive Director, Felix Torres, summarized it best when he said, “Helping people with foreclosure is very difficult; some people have really impossible situations, so if anyone tells you it's going to be really easy and quick and all you have to do is pay a few bucks---run away."
There is some good news however. Homeowners in need of urgent foreclosure intervention can seek help from a HUD certified lending agency such as Neighborhood Housing Services of Baltimore. We offer free consultation as well as fair and responsible lending opportunities. Our main concern is to ensure our clients’ financial success by helping them own a home for the first time, or by avoiding foreclosure.
Friday, August 15, 2008
Sub-prime Is So Six Months Ago
By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore
In the words of sports writer, Dan Cook, “the opera ain’t over till the fat lady sings”, and the last act of our mortgage crisis tragedy is far from curtain close.
The New York Times released an alarming story earlier this month that while the subprime mess appears to be showing the first signs of stabilization, there are a new set of mortgage problems hurling our way—- Alt-A and prime mortgage defaults. That’s right, homeowners with good credit and lower risk loan terms on their mortgages are now falling delinquent on their payments and facing foreclosure in growing numbers.
The main reasons-- loans known as Alt-A, which allow people with good credit to procure mortgages based on their credit scores, without proof of income or assets. Furthermore, homeowners who took out prime loans during the housing boom four or five years ago, with low interest and no obligation to pay on the principal, are now facing higher interest rates and principal payments two or three times higher than they were once accustomed to. Add this to refinancing difficulties as lenders tighten their belts, rising costs of food and services as inflation climbs to a new high and the rollercoastering price of gasoline and we have an equation that offers no refuge for struggling homeowners.
Maryland has seen an increase in foreclosures of more than 17% over the last year, with one of the hardest hit areas being Baltimore City, which saw foreclosures increase by 30% in six months alone. To combat these climbing numbers, we launched three new programs in 2008, which aim to keep low to moderate income homeowners out of foreclosure, educate prospective homebuyers on how to navigate the market and make good decisions and offer fair, responsible lending opportunities for first time homebuyers as well as those in need of home rehab.
These programs are our Emergency Bridge Loan, Homebuyer and Financial Fitness Education and low interest mortgages for first time homebuyers, sponsored by the Community Development Administration (CDA), Neighborhood Housing Services of America (NHSA) and Provident Bank.
As foreclosure numbers continue to rise due to prime and Alt-A delinquencies, NHS of Baltimore expects to be at the forefront of lending and consumer education in order to keep families and individuals in their homes and help sustain the Baltimore region through homeownership. We are Housing and Urban Development (HUD) certified to counsel current and prospective homeowners on the correct course of action and offer help that is catered to suit their individual needs. Our staff offers friendly, professional support.
Need to talk to someone about your delinquency or foreclosure status? Want to register for a class? Give us a call today. 410-327-1200
In the words of sports writer, Dan Cook, “the opera ain’t over till the fat lady sings”, and the last act of our mortgage crisis tragedy is far from curtain close.
The New York Times released an alarming story earlier this month that while the subprime mess appears to be showing the first signs of stabilization, there are a new set of mortgage problems hurling our way—- Alt-A and prime mortgage defaults. That’s right, homeowners with good credit and lower risk loan terms on their mortgages are now falling delinquent on their payments and facing foreclosure in growing numbers.
The main reasons-- loans known as Alt-A, which allow people with good credit to procure mortgages based on their credit scores, without proof of income or assets. Furthermore, homeowners who took out prime loans during the housing boom four or five years ago, with low interest and no obligation to pay on the principal, are now facing higher interest rates and principal payments two or three times higher than they were once accustomed to. Add this to refinancing difficulties as lenders tighten their belts, rising costs of food and services as inflation climbs to a new high and the rollercoastering price of gasoline and we have an equation that offers no refuge for struggling homeowners.
Maryland has seen an increase in foreclosures of more than 17% over the last year, with one of the hardest hit areas being Baltimore City, which saw foreclosures increase by 30% in six months alone. To combat these climbing numbers, we launched three new programs in 2008, which aim to keep low to moderate income homeowners out of foreclosure, educate prospective homebuyers on how to navigate the market and make good decisions and offer fair, responsible lending opportunities for first time homebuyers as well as those in need of home rehab.
These programs are our Emergency Bridge Loan, Homebuyer and Financial Fitness Education and low interest mortgages for first time homebuyers, sponsored by the Community Development Administration (CDA), Neighborhood Housing Services of America (NHSA) and Provident Bank.
As foreclosure numbers continue to rise due to prime and Alt-A delinquencies, NHS of Baltimore expects to be at the forefront of lending and consumer education in order to keep families and individuals in their homes and help sustain the Baltimore region through homeownership. We are Housing and Urban Development (HUD) certified to counsel current and prospective homeowners on the correct course of action and offer help that is catered to suit their individual needs. Our staff offers friendly, professional support.
Need to talk to someone about your delinquency or foreclosure status? Want to register for a class? Give us a call today. 410-327-1200
Monday, August 11, 2008
New Housing Bill Provides Help, Quid Pro Quo Attached in Fine Print
By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore
After much debate, deliberation and political strong-arming, Congress passed the Housing and Economic Recovery Act of 2008 last week, in hopes of providing a windfall for thousands of Americans suffering from the current state of the economy and housing market.
The new bill will surely have a large affect on many of our clients here at NHS of Baltimore, especially clients looking to purchase their first home. One of the largest provisions in the bill provides a tax credit for first time homebuyers, of 10% of the total principal of their mortgage—up to $7,500. New homebuyers who opt to take this credit will receive a check, minus the difference of the taxes they owe at the end of the year. If you owe nothing, you receive the full amount. Spelled out, a free gift from the federal government.
But Wait. This isn’t the same kind of gift as the stimulus we all received in our mailboxes earlier this year. Quid pro quo— recipients are expected to pay this one back. Buyer beware, although the tax credit stands to help a great deal of people on their way to owning a home, it essentially adds more than $7000 to their debt load.
However it is important to point out, there is some leniency. The tax credit has no interest rate and the amount given is the amount owed back. Furthermore, recipients will have15 years to pay it back through a $500 surcharge on their taxes each year until paid.
The question is really a personal one. Are you, the homebuyer willing to add more onto your debt load and can you handle it? Will the extra $500 dollars on your taxes at the end of the year be an unbearable burden or a just a small price to pay for the help you’re receiving now?
Commenting on the provision, our own Cheryl Cassell, Assistant Director of Single Family Programs, said, "first time homebuyers should proceed cautiously with regard to the tax credit. They should fully understand the details and understand that although it has been labeled as a tax credit, it is really an interest free loan".
NHS of Baltimore began offering mortgages for first-time homeowners earlier this year through the Community Development Administration of Maryland and Neighborhood Housing Services of America. Our goal is to offer truly affordable mortgages that are sure to fit our client’s needs and debt capacity. Our housing counselors will advise clients on a case by case basis whether it would be prudent to accept the tax credit, based on their current financial ability to withstand more debt.
Will you be accepting the federal government's tax credit? Weigh in on our poll.
After much debate, deliberation and political strong-arming, Congress passed the Housing and Economic Recovery Act of 2008 last week, in hopes of providing a windfall for thousands of Americans suffering from the current state of the economy and housing market.
The new bill will surely have a large affect on many of our clients here at NHS of Baltimore, especially clients looking to purchase their first home. One of the largest provisions in the bill provides a tax credit for first time homebuyers, of 10% of the total principal of their mortgage—up to $7,500. New homebuyers who opt to take this credit will receive a check, minus the difference of the taxes they owe at the end of the year. If you owe nothing, you receive the full amount. Spelled out, a free gift from the federal government.
But Wait. This isn’t the same kind of gift as the stimulus we all received in our mailboxes earlier this year. Quid pro quo— recipients are expected to pay this one back. Buyer beware, although the tax credit stands to help a great deal of people on their way to owning a home, it essentially adds more than $7000 to their debt load.
However it is important to point out, there is some leniency. The tax credit has no interest rate and the amount given is the amount owed back. Furthermore, recipients will have15 years to pay it back through a $500 surcharge on their taxes each year until paid.
The question is really a personal one. Are you, the homebuyer willing to add more onto your debt load and can you handle it? Will the extra $500 dollars on your taxes at the end of the year be an unbearable burden or a just a small price to pay for the help you’re receiving now?
Commenting on the provision, our own Cheryl Cassell, Assistant Director of Single Family Programs, said, "first time homebuyers should proceed cautiously with regard to the tax credit. They should fully understand the details and understand that although it has been labeled as a tax credit, it is really an interest free loan".
NHS of Baltimore began offering mortgages for first-time homeowners earlier this year through the Community Development Administration of Maryland and Neighborhood Housing Services of America. Our goal is to offer truly affordable mortgages that are sure to fit our client’s needs and debt capacity. Our housing counselors will advise clients on a case by case basis whether it would be prudent to accept the tax credit, based on their current financial ability to withstand more debt.
Will you be accepting the federal government's tax credit? Weigh in on our poll.
Friday, August 8, 2008
Back To School For Some, Back To Reality For Many Others…
By: Jessica Schmidt, Philanthropy Manager, NHS of Baltimore
Yesterday I walked into a store, and I was quickly reminded of what time of year it was…Back to School time, that time of year where kids cringe just thinking about homework and the loss of their summer freedoms. Ahh childhood, when it seems like the biggest ordeal was which trapper keeper to pick, what color folders to buy, and who to sit next to at lunch. As I walked through I couldn’t help but think about kids that are facing much harder, and more adult decisions because of the current economy. Instead of what lunchbox to get, they worry whether food will fill them, instead of who to sit by on the bus, they worry if they have a home for the bus to drop them off at.
The foreclosure crisis certainly has had a ripple effect in communities and the numbers are staggering, but what does foreclosure mean for a child and their educational future? According to the Pew Charitable Trusts report on the states response to the foreclosure crisis, 1 in 26 households in Maryland will face foreclosure over the next two years, and nationally nearly 3.3 million mortgages may default in 2007 and 2008. This means that 1.95 million children and youths are at high risk of losing their homes nationwide. In Maryland it is projected that 43,200 children will lose their homes as a direct result of foreclosure, according to a study done by First Focus.
Across the country schools are seeing a rapidly growing number of homeless children in their classrooms, and the effect to their education and behavior is starting to show. According to the National Assessment of Educational Progress, students with two or more school changes in the previous year are half as likely to be proficient in reading as their peers, and a government study found that mobile third grade students were nearly twice as likely to perform below grade level in math, compared to those who had not changed school. Students that have to move because of foreclosure are at a distinct disadvantage educationally, and without a stable home environment their education can continue to suffer. How can they study English if their family can’t pay the BGE bill? How can they learn math if they have to spend the night in a shelter? How can they build relationships when they are switching schools every few months? Researchers have found that school and residential changes can reduce the likelihood of graduation by more than 50%.
Educational issues aside, a lack of stable housing can also lead to behavioral and health issues. A study done by the General Accounting Office (GAO) found that frequent movers were 77% more likely to have four or more behavioral problems than their counterparts who have a stable home environment. Other studies have shown that attending multiple elementary schools increases the likelihood of violent behavior in high school by 20%. Children’s health are also at risk, families facing a critical burden of housing costs have less income to afford health insurance and prescriptions, as well as nutritional meals. The GAO study also stated that stable housing has been shown to correlate with other health outcomes, among them better nutrition, and healthy body weight. In the long run children that come from families that own their home are 59% more likely to become homeowners, their children are 25% more likely to graduate from high school, and they are 116% more likely to graduate from college.
That’s a lot of numbers I realize, but it is very alarming when you really start to think about the long term effects of the current economy. Saving a family’s home today can save a child’s educational future 10 years down the road and can make them better homeowners for their children. For some of us we may be able to move on from the “Forclousure Crisis” and forget about it in a year or two, but for some families the wounds run deeper and take much longer and a lot more help to heal.
Want to know how you can help a Baltimore family? E-mail me at jschmidt@nhsbaltimore.com.
Yesterday I walked into a store, and I was quickly reminded of what time of year it was…Back to School time, that time of year where kids cringe just thinking about homework and the loss of their summer freedoms. Ahh childhood, when it seems like the biggest ordeal was which trapper keeper to pick, what color folders to buy, and who to sit next to at lunch. As I walked through I couldn’t help but think about kids that are facing much harder, and more adult decisions because of the current economy. Instead of what lunchbox to get, they worry whether food will fill them, instead of who to sit by on the bus, they worry if they have a home for the bus to drop them off at.
The foreclosure crisis certainly has had a ripple effect in communities and the numbers are staggering, but what does foreclosure mean for a child and their educational future? According to the Pew Charitable Trusts report on the states response to the foreclosure crisis, 1 in 26 households in Maryland will face foreclosure over the next two years, and nationally nearly 3.3 million mortgages may default in 2007 and 2008. This means that 1.95 million children and youths are at high risk of losing their homes nationwide. In Maryland it is projected that 43,200 children will lose their homes as a direct result of foreclosure, according to a study done by First Focus.
Across the country schools are seeing a rapidly growing number of homeless children in their classrooms, and the effect to their education and behavior is starting to show. According to the National Assessment of Educational Progress, students with two or more school changes in the previous year are half as likely to be proficient in reading as their peers, and a government study found that mobile third grade students were nearly twice as likely to perform below grade level in math, compared to those who had not changed school. Students that have to move because of foreclosure are at a distinct disadvantage educationally, and without a stable home environment their education can continue to suffer. How can they study English if their family can’t pay the BGE bill? How can they learn math if they have to spend the night in a shelter? How can they build relationships when they are switching schools every few months? Researchers have found that school and residential changes can reduce the likelihood of graduation by more than 50%.
Educational issues aside, a lack of stable housing can also lead to behavioral and health issues. A study done by the General Accounting Office (GAO) found that frequent movers were 77% more likely to have four or more behavioral problems than their counterparts who have a stable home environment. Other studies have shown that attending multiple elementary schools increases the likelihood of violent behavior in high school by 20%. Children’s health are also at risk, families facing a critical burden of housing costs have less income to afford health insurance and prescriptions, as well as nutritional meals. The GAO study also stated that stable housing has been shown to correlate with other health outcomes, among them better nutrition, and healthy body weight. In the long run children that come from families that own their home are 59% more likely to become homeowners, their children are 25% more likely to graduate from high school, and they are 116% more likely to graduate from college.
That’s a lot of numbers I realize, but it is very alarming when you really start to think about the long term effects of the current economy. Saving a family’s home today can save a child’s educational future 10 years down the road and can make them better homeowners for their children. For some of us we may be able to move on from the “Forclousure Crisis” and forget about it in a year or two, but for some families the wounds run deeper and take much longer and a lot more help to heal.
Want to know how you can help a Baltimore family? E-mail me at jschmidt@nhsbaltimore.com.
Monday, August 4, 2008
Invest a Lifetime in West Baltimore, Instead of Investing a Day Trip to First Mariner
By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore
Many of you may have heard, the city of Baltimore is considering the rebirth of the first Mariner Arena in hopes that a new event and concert venue on the west side will spark greater economic growth and revitalize neighborhoods in the area. Baltimore is expected to spend close to $300 million on the new arena.
As an advocate for neighborhood revitalization, I believe one of the central tenants of reversing decline and stimulating prosperity is to re-invest in some of the city’s most vulnerable neighborhoods, such as those in west Baltimore. My interest is always peaked when the city suggests pouring tax-payer money into new stadiums and event centers to attract tourism and business. Why aren’t we investing in rehabilitating vacant and blighted properties and creating more affordable housing, fixing inner-city schools and beefing up police protection?
These factors all play tremendous roles in bringing economic growth back into the area. If you build it, they will come? Not necessarily. This is not to say I don’t recognize the proposed value of the new arena. I understand that its presence will hopefully bring with it plenty of food, shopping, entertainment and business. However it is important to point out that while this will attract people into west Baltimore for a day or weekend trip, to participate in and benefit from the amenities the arena offers, it will not entice them to move into the surrounding neighborhoods permanently.
At the end of the day, we still have people going home and taking their valuable tax dollars and resources with them. People moving into the area to live, would spark investment from business and bring food, entertainment and shopping back. So why not re-invest in the neighborhoods of west Baltimore? Instead of giving people incentives to invest for a day, why not give them incentives to invest for life?
Want to weigh in? Use our survey to tell us your opinion.
Many of you may have heard, the city of Baltimore is considering the rebirth of the first Mariner Arena in hopes that a new event and concert venue on the west side will spark greater economic growth and revitalize neighborhoods in the area. Baltimore is expected to spend close to $300 million on the new arena.
As an advocate for neighborhood revitalization, I believe one of the central tenants of reversing decline and stimulating prosperity is to re-invest in some of the city’s most vulnerable neighborhoods, such as those in west Baltimore. My interest is always peaked when the city suggests pouring tax-payer money into new stadiums and event centers to attract tourism and business. Why aren’t we investing in rehabilitating vacant and blighted properties and creating more affordable housing, fixing inner-city schools and beefing up police protection?
These factors all play tremendous roles in bringing economic growth back into the area. If you build it, they will come? Not necessarily. This is not to say I don’t recognize the proposed value of the new arena. I understand that its presence will hopefully bring with it plenty of food, shopping, entertainment and business. However it is important to point out that while this will attract people into west Baltimore for a day or weekend trip, to participate in and benefit from the amenities the arena offers, it will not entice them to move into the surrounding neighborhoods permanently.
At the end of the day, we still have people going home and taking their valuable tax dollars and resources with them. People moving into the area to live, would spark investment from business and bring food, entertainment and shopping back. So why not re-invest in the neighborhoods of west Baltimore? Instead of giving people incentives to invest for a day, why not give them incentives to invest for life?
Want to weigh in? Use our survey to tell us your opinion.
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