By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore
Before people think that becoming a homeowner in Baltimore City is impossible, it is extremely important that they make themselves aware of the variety of incentives that the City of Baltimore offers for potential homebuyers. Each program has specific qualifications managed by different city departments or nonprofits.
The Community Development Block Grant
This program can give first-time homebuyers $5,000 towards down payment and settlement expenses. This program is beneficial because there is a combined amount of $11,000 in incentive money and a possible $8,000 tax credit.
Eligibility includes:
• First time homebuyers with a certificate from a city approved counseling agency
• Property must be located in Baltimore City
• The buyer must contribute at least $1,000 towards purchase and must use the property as their primary residence
• Buyer must secure a HQS Home Inspection on the property
• There must not be any flaking, peeling, or chipping paint in or outside the home
• Contract of sale must be executed on or after 01/01/2010, contracts that have already gone to settlement do not qualify
• Closing on the property must occur within 90 days of the contract date
• Income limitations
Buying into Baltimore
This program is a joint project of the City of Baltimore and the Live Baltimore Home Center. Neighborhood tours are scheduled in the spring for the West side and the fall for the East side. The first 50 homebuyers that attend the trolley tour and complete a sales contract within 90 days of the fair receive a $3,000 award towards closing costs. Only homebuyers executing contracts of sale within 90 days of the Buying into Baltimore Home Buying fair and Neighborhood Tours.
Restrictions/Terms of Loan:
•Use a Fannie Mae or Freddie Mac approved lender with a mortgage loan that cannot exceed $417,000
•The buyer must contribute at least $1,000 towards purchase and must use the property as their primary residence
•Borrower must attend the fair, get a ticket, and have ticket validated in at least four tour homes
•The home must be located in the designated region for that fair
•Contract must be signed after the event
•Loan is forgivable (20 percent per year) over 5 years for each year of occupancy
The Baltimore City Employee Homeownership Program
This program has been around for 11 years and is designed to assist employees of the City of Baltimore to become homeowners within the city limits. All employees of Baltimore city’s agencies and quasi-agencies who have been working for a minimum of six months are eligible. This program is beneficial as there is a $3,000 down payment and closing assistance with no annual income limits.
Restrictions/ Terms of Loan:
•The mortgage loan may not exceed $417,000
•The buyer must contribute at least $1,000 towards purchase and must use the property as their primary residence
•Closing on the property must occur within 90 days of the contract date
•Only one city employee per household may receive assistance
•Loan is forgivable (20 percent per year) over 5 years for each year of occupancy
•Property must be located in an eligible neighborhood in Baltimore City. Ineligible neighborhoods are: Bellona-Gittings, Blythewood, Canton, Cedarcroft, Cross Keys, Evergreen, Federal Hill, Guilford, Hunting Ridge, Homeland, Homeland-Gallagher, Kernwood, Keswick, Lake Evesham, Loyola, Mount Washington, North Roland Park, Otterbein, Original Northwood, Roland Park, Rosebank, Sabina-Mattfeldt, Ten Hills, The Orchards, Tuscany-Canterbury, and Wyndhurst.
Baltimore City Live Near Your Work Program
This program is a partnership with participating employers and Baltimore City to persuade people to live near their place of employment. Employees of participating companies who are first time homebuyers are eligible. Participating employers reserve the right to develop additional eligibility requirements for their employers. Benefits from the program are a $2,000 minimum grant or conditional grant ($1,000 from City of Baltimore, and $1,000 from employer) to be used toward down payment and closing assistance with no annual income limits.
Restrictions:
•The buyer must contribute at least $1,000 towards purchase and must use the property as their primary residence
•Participating employers can develop additional restrictions such as eligible neighborhoods
Additional homeownership incentives include Baltimore's Housing Choice Voucher Homeownership Program, State Mortgage Programs and Homeownership Assistance, Baltimore City Tax Incentives, Federal Mortgage Programs and Homeownership Assistance, and Maryland Homestead Tax Credit. To find our more information about these incentives please visit http://www.baltimorehousing.org/ps_homeownership.asp .
Wednesday, March 24, 2010
Monday, March 22, 2010
Filling the Nutritional Gaps in Baltimore Neighborhoods
By: Salina Greene, Outreach Coordinator, NHS of Baltimore
The many “food deserts” of East and West Baltimore have suffered for many years without access to basic food needs due to lack of adequate supermarkets in these areas. The City of Baltimore has decided to create the new “Virtual Supermarket Project”. It will be the latest attempt to help alleviate the fresh food shortage in these areas. The city has a long-standing history of having a lack of healthful foods for its residents. Many neighborhoods are plagued with nothing but corner stores and local carryouts that are filled with processed fast foods which are high in sugar and fats. Health officials have concluded that a neighborhood located around Orleans Street library has an unusually high rate of mortalities from food-related conditions such as heart disease, stroke and diabetes. They do not have access to a single supermarket within walking distance. With the recent closing of the 60,000 square foot Safeway in Mount Clare, a void was left in Southwest Baltimore and many jobs were lost. Some are lobbying for smaller grocery stores to come back into these communities to boost the area’s economy. However, it has been a slow process. Changing the nutritional landscape of an area requires cooperation from all avenues of the neighborhood. This cannot change overnight but it can assist in its promotion.
The Food Policy Task Force has received a $60,000 federal stimulus grant to support this program. The virtual grocery store can be accessed through the Project-sponsored laptops at the Orleans Street and Washington Village library branches. For now, the food is ordered from Santoni’s Super Market in Highlandtown (www.santonismarket.com). Orders placed at the Orleans Street location on Wednesdays between the hours of 11 a.m.-3 p.m., can be picked up the following day between 1 p.m.-2 p.m. The Washington Village location will be accepting orders on Mondays between 12 p.m.-3 p.m. Pickup is the next day between 1 p.m.-2 p.m. as well. Cash, credit cards, as well as food stamps are accepted for purchases. Although there is no home delivery and limited hours at the moment, the program hopes to include these services in the near future. For more information go to: http://www.baltimorehealth.org/virtualsupermarket.html
The many “food deserts” of East and West Baltimore have suffered for many years without access to basic food needs due to lack of adequate supermarkets in these areas. The City of Baltimore has decided to create the new “Virtual Supermarket Project”. It will be the latest attempt to help alleviate the fresh food shortage in these areas. The city has a long-standing history of having a lack of healthful foods for its residents. Many neighborhoods are plagued with nothing but corner stores and local carryouts that are filled with processed fast foods which are high in sugar and fats. Health officials have concluded that a neighborhood located around Orleans Street library has an unusually high rate of mortalities from food-related conditions such as heart disease, stroke and diabetes. They do not have access to a single supermarket within walking distance. With the recent closing of the 60,000 square foot Safeway in Mount Clare, a void was left in Southwest Baltimore and many jobs were lost. Some are lobbying for smaller grocery stores to come back into these communities to boost the area’s economy. However, it has been a slow process. Changing the nutritional landscape of an area requires cooperation from all avenues of the neighborhood. This cannot change overnight but it can assist in its promotion.
The Food Policy Task Force has received a $60,000 federal stimulus grant to support this program. The virtual grocery store can be accessed through the Project-sponsored laptops at the Orleans Street and Washington Village library branches. For now, the food is ordered from Santoni’s Super Market in Highlandtown (www.santonismarket.com). Orders placed at the Orleans Street location on Wednesdays between the hours of 11 a.m.-3 p.m., can be picked up the following day between 1 p.m.-2 p.m. The Washington Village location will be accepting orders on Mondays between 12 p.m.-3 p.m. Pickup is the next day between 1 p.m.-2 p.m. as well. Cash, credit cards, as well as food stamps are accepted for purchases. Although there is no home delivery and limited hours at the moment, the program hopes to include these services in the near future. For more information go to: http://www.baltimorehealth.org/virtualsupermarket.html
Thursday, March 18, 2010
Making homes healthier to live in, NHS incorporates Green Rehab Specifications
By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore
With the stimulus money brought about by the Obama Administration, the opportunity has come for many homeowners to buy more energy efficient appliances for their homes. To create healthier living environments, NHS has “gone green” with new green rehab specifications.
With these new specifications, homeowners who get home rehab services from NHS could get paint and carpeting among other things that are less toxic to their homes. Environmental friendly paint and carpeting can help prevent the amount of off-gassing in a home. This is extremely important because when newer homes are built, they tend to be sealed up tighter therefore more off-gassing may occur. Energy efficient products in your home also make it more comfortable to residents with asthma or other respiratory problems.
In the initial stage of home rehab services at NHS, a list of specifications is generated and edited by a computer program to incorporate green specifications. Low flow toilets, tankless hot water heaters, bamboo flooring, solar tubes, compact fluorescent light fixtures, and low-VOC paint are some of the green specs that go into the home rehab services. Because energy efficient products are costly, the rehab specs must coincide with what the homeowner can afford. However, every new project that gets written up has green aspects to it.
NHS recently used green standards in the rehab of six homes in Riverview by covering exterior walls with environmentally approved house wrap under vinyl siding, insulation of the hot and cold water pipes, low flow faucets and showerheads, “energy star” labeled fixtures, and double panned energy efficient windows. In the future NHS plans to do larger scale projects that will attempt to make home rehab even more environmentally friendly.
These new specification writing programs have put NHS of Baltimore a step ahead when it comes to home rehabilitation. They have been very helpful in generating a scope of work that automatically comes out green and make our clients homes healthier to live in.
With the stimulus money brought about by the Obama Administration, the opportunity has come for many homeowners to buy more energy efficient appliances for their homes. To create healthier living environments, NHS has “gone green” with new green rehab specifications.
With these new specifications, homeowners who get home rehab services from NHS could get paint and carpeting among other things that are less toxic to their homes. Environmental friendly paint and carpeting can help prevent the amount of off-gassing in a home. This is extremely important because when newer homes are built, they tend to be sealed up tighter therefore more off-gassing may occur. Energy efficient products in your home also make it more comfortable to residents with asthma or other respiratory problems.
In the initial stage of home rehab services at NHS, a list of specifications is generated and edited by a computer program to incorporate green specifications. Low flow toilets, tankless hot water heaters, bamboo flooring, solar tubes, compact fluorescent light fixtures, and low-VOC paint are some of the green specs that go into the home rehab services. Because energy efficient products are costly, the rehab specs must coincide with what the homeowner can afford. However, every new project that gets written up has green aspects to it.
NHS recently used green standards in the rehab of six homes in Riverview by covering exterior walls with environmentally approved house wrap under vinyl siding, insulation of the hot and cold water pipes, low flow faucets and showerheads, “energy star” labeled fixtures, and double panned energy efficient windows. In the future NHS plans to do larger scale projects that will attempt to make home rehab even more environmentally friendly.
These new specification writing programs have put NHS of Baltimore a step ahead when it comes to home rehabilitation. They have been very helpful in generating a scope of work that automatically comes out green and make our clients homes healthier to live in.
Wednesday, March 17, 2010
The Importance of Knowing Your Credit
By: Salina Greene, Outreach Coordinator, NHS of Baltimore
As many Americans are facing unemployment, landing a job in this tough economy or keeping one is a challenge within itself. Many are discovering that their past credit problems are affecting their current job search. In some instances, job offers are rescinded. Critics say personal credit is one more barrier that hinders economic recovery. Nowadays, many people have tarnished credit after they lose their jobs and struggle to make ends meet. On the other hand, past credit histories are affecting even more people as employers are becoming more strict in their hiring processes. The reason behind this is the massive surge of job seekers in relation to available jobs. This process has stirred a movement amongst advocacy groups supporting consumers and workers.
In Maryland, lawmakers are lobbying for a new legislation to be put in place to ban credit checks in the hiring and firing processes. This new law, if passed, will not affect financial institutions that are required by law to run credit checks. While other states are considering lobbying for similar laws, legislation is under way in Congressional meetings. If passed, creditworthiness would not be a factor in employers hiring or firing employees. In many ways, this is a positive move as credit reports can contain errors and lead to discriminatory judgments against a worker’s abilities. Some argue credit checks are necessary to assess risks critical to many business owners. Stuart K. Pratt, president and CEO of the Consumer Data Industry Association stated, “Key indicators of potential fraud were employees living beyond their financial means and employees experiencing financial difficulties”. One of the ways not get into financial straights is to become educated in financial matters before it becomes too late.
You are able to review your credit report for free once a year through: www.FreeCreditReport.com. During this period of recession, it is of the utmost importance to manage your resources well. One way to do this is to attend one of our Financial Fitness Workshops at Neighborhood Housing Services of Baltimore. If you are unable to attend any of these classes, we are holding an event April 17th, 2010 at Pleasant Hope Baptist Church, surrounding issues related to consumer responsibility. We will be able to pull credit reports during this time for a nominal fee. Please contact us at 410-327-1200 for more information. Remember, knowledge is the key.
As many Americans are facing unemployment, landing a job in this tough economy or keeping one is a challenge within itself. Many are discovering that their past credit problems are affecting their current job search. In some instances, job offers are rescinded. Critics say personal credit is one more barrier that hinders economic recovery. Nowadays, many people have tarnished credit after they lose their jobs and struggle to make ends meet. On the other hand, past credit histories are affecting even more people as employers are becoming more strict in their hiring processes. The reason behind this is the massive surge of job seekers in relation to available jobs. This process has stirred a movement amongst advocacy groups supporting consumers and workers.
In Maryland, lawmakers are lobbying for a new legislation to be put in place to ban credit checks in the hiring and firing processes. This new law, if passed, will not affect financial institutions that are required by law to run credit checks. While other states are considering lobbying for similar laws, legislation is under way in Congressional meetings. If passed, creditworthiness would not be a factor in employers hiring or firing employees. In many ways, this is a positive move as credit reports can contain errors and lead to discriminatory judgments against a worker’s abilities. Some argue credit checks are necessary to assess risks critical to many business owners. Stuart K. Pratt, president and CEO of the Consumer Data Industry Association stated, “Key indicators of potential fraud were employees living beyond their financial means and employees experiencing financial difficulties”. One of the ways not get into financial straights is to become educated in financial matters before it becomes too late.
You are able to review your credit report for free once a year through: www.FreeCreditReport.com. During this period of recession, it is of the utmost importance to manage your resources well. One way to do this is to attend one of our Financial Fitness Workshops at Neighborhood Housing Services of Baltimore. If you are unable to attend any of these classes, we are holding an event April 17th, 2010 at Pleasant Hope Baptist Church, surrounding issues related to consumer responsibility. We will be able to pull credit reports during this time for a nominal fee. Please contact us at 410-327-1200 for more information. Remember, knowledge is the key.
Friday, March 12, 2010
Take 10 Minutes to Complete the 2010 Census
By: Ellen Frick, Outreach Coordinator, NHS of Baltimore
The 2010 Census is upon us and the government is urging every American to take ten minutes and fill it out. The Census determines the amount of federal funding and political representation in Congress that every state of the nation is entitled to. Therefore, more people completing the Census can mean more money for things like schools and hospitals. Additionally, many researchers and planners utilize statistics from the Census in formatting new policies and community initiatives.
Unfortunately, many individuals do not fill out the Census. Some people may not be aware of the importance or they are worried about the government knowing too much about them. Keep in mind that any personal information given is protected by law. In 2000, the last year the Census was taken, the average nationwide response rate was seventy-two percent. The state of Maryland’s response rate was similar at seventy-three percent, only sixty percent of Baltimore City residents completed the Census the last time around. City officials in Baltimore are strongly encouraging every household to take a few minutes and fill out the questionnaire this year.
Completing the Census is simple and does not take long. Every household should have recently received a short questionnaire by mail, including a postage-paid envelope in which to return the form. If you do not fill out and return the form, a census taker will visit your home on or after April 1, 2010 and ask the same questions. The Census website provides an overview of each question asked as well as the reasoning behind each query. If you have any concerns check out the Census FAQ database.
The 2010 Census is upon us and the government is urging every American to take ten minutes and fill it out. The Census determines the amount of federal funding and political representation in Congress that every state of the nation is entitled to. Therefore, more people completing the Census can mean more money for things like schools and hospitals. Additionally, many researchers and planners utilize statistics from the Census in formatting new policies and community initiatives.
Unfortunately, many individuals do not fill out the Census. Some people may not be aware of the importance or they are worried about the government knowing too much about them. Keep in mind that any personal information given is protected by law. In 2000, the last year the Census was taken, the average nationwide response rate was seventy-two percent. The state of Maryland’s response rate was similar at seventy-three percent, only sixty percent of Baltimore City residents completed the Census the last time around. City officials in Baltimore are strongly encouraging every household to take a few minutes and fill out the questionnaire this year.
Completing the Census is simple and does not take long. Every household should have recently received a short questionnaire by mail, including a postage-paid envelope in which to return the form. If you do not fill out and return the form, a census taker will visit your home on or after April 1, 2010 and ask the same questions. The Census website provides an overview of each question asked as well as the reasoning behind each query. If you have any concerns check out the Census FAQ database.
Wednesday, March 10, 2010
New Home Buyers: What do you need to know?
By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore
As a result of the revised first-time homebuyer federal income tax credit coming in effect, now is the time when many Americans will be taking the big step of buying their first homes. Because buying a home is one of the biggest financial decisions a person can make, there are certain things people should know when they are in the process of buying a home.
Researching the first-time homebuyer federal income tax credit is the first thing new homebuyers should look into. They should make sure they understand the guidelines of the first time homebuyer tax credit and find out how it may benefit them. Homebuyers should also think about what they can afford and search for homes that are within their budget. What you can afford can be based on how much the down payment is that you are able to make and how much money you can borrow.
After figuring out the budget for your home purchase, finding the right neighborhood is the next important step. There are many factors such as location, distance, schools in the area if you have children, crime, and basic neighborhood demographics that come into the equation when looking for the right neighborhood you should live in. Other things to think about when buying a home are the basic things you want your home to have. This can include the number of bedrooms and bathrooms, a large backyard, wall to wall carpeting, or a finished basement etc.
One of the most intimidating factors for first time homebuyers is that they often do not know where to begin. Right now there are many unique opportunities in the market and consumers should take advantage of buying at the right time. If first time homeowners keep these things in mind before then the transition to homeownership should not be very difficult.
As a result of the revised first-time homebuyer federal income tax credit coming in effect, now is the time when many Americans will be taking the big step of buying their first homes. Because buying a home is one of the biggest financial decisions a person can make, there are certain things people should know when they are in the process of buying a home.
Researching the first-time homebuyer federal income tax credit is the first thing new homebuyers should look into. They should make sure they understand the guidelines of the first time homebuyer tax credit and find out how it may benefit them. Homebuyers should also think about what they can afford and search for homes that are within their budget. What you can afford can be based on how much the down payment is that you are able to make and how much money you can borrow.
After figuring out the budget for your home purchase, finding the right neighborhood is the next important step. There are many factors such as location, distance, schools in the area if you have children, crime, and basic neighborhood demographics that come into the equation when looking for the right neighborhood you should live in. Other things to think about when buying a home are the basic things you want your home to have. This can include the number of bedrooms and bathrooms, a large backyard, wall to wall carpeting, or a finished basement etc.
One of the most intimidating factors for first time homebuyers is that they often do not know where to begin. Right now there are many unique opportunities in the market and consumers should take advantage of buying at the right time. If first time homeowners keep these things in mind before then the transition to homeownership should not be very difficult.
Thursday, February 25, 2010
Mandatory Mediation Law Introduced to Maryland Legislature
By: Ellen Frick, Outreach Coordinator, NHS of Baltimore
A few months ago the Baltimore Homeownership Blog mentioned that Governor O’Malley was considering introducing legislation requiring mandatory mediation between lenders and borrowers in cases where foreclosure is likely. Indeed, O’Malley did recently introduce such a bill. Last week the Governor and Congressman Elijah Cummings, longtime foreclosure prevention activist, testified before State House and Senate committees.
Governor O’Malley’s website outlines the details of the proposed law. The legislation is meant to protect homeowners, requiring all lenders to consider and discuss loan modifications and other options with borrowers before filing an intent to foreclose. A handful of other states, such as Nevada and Florida, already have mandatory mediation laws in place.
Despite the protective nature of the legislation, many people are questioning the usefulness and cost of passing such a law. For instance, some taxpayers are angry and feel that homeowners may be rewarded for purchasing a home they could not afford. Others are skeptical that the law would prove to be effective, and that banks will not fulfill their end of the mediation process. Yet O’Malley says the legislation is needed as mortgage companies are not doing all they can to work with struggling homeowners. The proposed law is important in order that we both alleviate the current foreclosure crisis as well as making sure it does not happen again.
Mandatory mediation laws ensure that financial institutions negotiate with homeowners and do everything possible to keep families in their homes. Some banks have come up with their own ways to alleviate foreclosure, such as increasing the workforce or creating entire loss mitigation departments. One of these institutions is CitiBank who has a department devoted to preserving homeownership. Many other lenders have introduced similar initiatives as well.
A few months ago the Baltimore Homeownership Blog mentioned that Governor O’Malley was considering introducing legislation requiring mandatory mediation between lenders and borrowers in cases where foreclosure is likely. Indeed, O’Malley did recently introduce such a bill. Last week the Governor and Congressman Elijah Cummings, longtime foreclosure prevention activist, testified before State House and Senate committees.
Governor O’Malley’s website outlines the details of the proposed law. The legislation is meant to protect homeowners, requiring all lenders to consider and discuss loan modifications and other options with borrowers before filing an intent to foreclose. A handful of other states, such as Nevada and Florida, already have mandatory mediation laws in place.
Despite the protective nature of the legislation, many people are questioning the usefulness and cost of passing such a law. For instance, some taxpayers are angry and feel that homeowners may be rewarded for purchasing a home they could not afford. Others are skeptical that the law would prove to be effective, and that banks will not fulfill their end of the mediation process. Yet O’Malley says the legislation is needed as mortgage companies are not doing all they can to work with struggling homeowners. The proposed law is important in order that we both alleviate the current foreclosure crisis as well as making sure it does not happen again.
Mandatory mediation laws ensure that financial institutions negotiate with homeowners and do everything possible to keep families in their homes. Some banks have come up with their own ways to alleviate foreclosure, such as increasing the workforce or creating entire loss mitigation departments. One of these institutions is CitiBank who has a department devoted to preserving homeownership. Many other lenders have introduced similar initiatives as well.
Wednesday, February 17, 2010
Dealing With Damage to Your Home After a Snow Storm
By: Salina Greene, Outreach Coordinator, NHS of Baltimore
In the seemingly near-ending saga of snow storms which have plagued our area, residents in the Baltimore metropolitan area have tried to cope with almost four feet of snow. Many homeowners’ are left to wonder how to recover from the damages associated with two of the most powerful storms to hit the region in over 100 years. A number of homes are likely to end up with some form of weather-related damage. The first step to addressing some of the problems is to review your homeowner’s insurance policy. Taking a few extra steps to insure you know your level of protection can save you a lot of money in the long run.
Generally, homeowner’s policies cover burst pipes, fallen tree removals, sleet and wind damage to rooftops, trees falling on top of houses, water damage due to “ice dams” that block gutters, and other such similar cases. Food damage caused by melting snow is usually covered through a separate policy, purchasable through a federal insurance program. A good resource to look into is the National Flood Insurance Program (NFI). Many homeowners’ policies have limitations on coverage that the owner is unaware of until a significant event occurs. Most of the time, consumers opt out of certain coverage to keep their premiums down; only to discover later that certain disasters are not covered. By then, it is too late.
If your home has already sustained damage, you first need to decide whether or not it is worth filing a claim. If the damage is mild, a few hundred dollars or so, you are better off paying for it yourself. If you can afford it, file a claim only when the damage is extensive. When it comes to renewing your policy, the insurance company will look at the number of claims you have filed in the past two to three years. If you made three or more claims during this period, they may see you as high risk and not renew your policy. If your claim is substantial, it is best to file as soon as possible.
Some precautionary measures to take to protect your home after a severe snow/rain storm are as follows: Make sure all snow is shoveled away from all doors and window wells. Once the snow starts to melt, it will probably begin to seep into basements and doorways. Move any furniture and/or household items off the basement floors and near the doors to avoid being warped by water. Outdoor faucets can be protected by foam covers- the covers draw heat away from the house and keeps the faucets from freezing. Covers can be purchased at your local hardware store. If you lose power, keep your indoor faucets trickling to avoid pipe freezing. Moisture coming through the ceiling can be a sign of gutter blockage by ice. Baltimore has a ton of flat roofs. Snow and ice accumulation can cause collapse. Garages and commercial buildings are the most susceptible to this outcome. Do not attempt to clean these problems up yourself. Hire a professional or contractor to handle this for you.
In the seemingly near-ending saga of snow storms which have plagued our area, residents in the Baltimore metropolitan area have tried to cope with almost four feet of snow. Many homeowners’ are left to wonder how to recover from the damages associated with two of the most powerful storms to hit the region in over 100 years. A number of homes are likely to end up with some form of weather-related damage. The first step to addressing some of the problems is to review your homeowner’s insurance policy. Taking a few extra steps to insure you know your level of protection can save you a lot of money in the long run.
Generally, homeowner’s policies cover burst pipes, fallen tree removals, sleet and wind damage to rooftops, trees falling on top of houses, water damage due to “ice dams” that block gutters, and other such similar cases. Food damage caused by melting snow is usually covered through a separate policy, purchasable through a federal insurance program. A good resource to look into is the National Flood Insurance Program (NFI). Many homeowners’ policies have limitations on coverage that the owner is unaware of until a significant event occurs. Most of the time, consumers opt out of certain coverage to keep their premiums down; only to discover later that certain disasters are not covered. By then, it is too late.
If your home has already sustained damage, you first need to decide whether or not it is worth filing a claim. If the damage is mild, a few hundred dollars or so, you are better off paying for it yourself. If you can afford it, file a claim only when the damage is extensive. When it comes to renewing your policy, the insurance company will look at the number of claims you have filed in the past two to three years. If you made three or more claims during this period, they may see you as high risk and not renew your policy. If your claim is substantial, it is best to file as soon as possible.
Some precautionary measures to take to protect your home after a severe snow/rain storm are as follows: Make sure all snow is shoveled away from all doors and window wells. Once the snow starts to melt, it will probably begin to seep into basements and doorways. Move any furniture and/or household items off the basement floors and near the doors to avoid being warped by water. Outdoor faucets can be protected by foam covers- the covers draw heat away from the house and keeps the faucets from freezing. Covers can be purchased at your local hardware store. If you lose power, keep your indoor faucets trickling to avoid pipe freezing. Moisture coming through the ceiling can be a sign of gutter blockage by ice. Baltimore has a ton of flat roofs. Snow and ice accumulation can cause collapse. Garages and commercial buildings are the most susceptible to this outcome. Do not attempt to clean these problems up yourself. Hire a professional or contractor to handle this for you.
Tuesday, February 16, 2010
The Crisis has Halted, But the Road To Recovery is Long
By: Ellen Frick, Outreach Coordinator, NHS of Baltimore
During President Obama’s State of the Union speech, he asked politicians for unity in bringing the American people out of economic hardship. Indeed, elected officials from both sides of the table are going to have to work together to alleviate what the Economic Policy Institute (EPI) has noted is by far the worst economic crisis since the Great Depression. These measures take into account both severity and longevity.
Obama told Congress and millions of Americans that the worst of the storm is over, but devastation remains. Unfortunately, the devastation may remain for quite some time as the administration admitted that even with all the spending and other initiatives to create new jobs, the unemployment rate is unlikely to change a great deal by the end of 2010. In fact, the predicted national unemployment rate at the end of 2010 is 9.8%, a small change from the current level of 10%. That number is expected to improve over the next few years, reaching 7.9% by the end of 2012.
Moving forward, Obama stated job creation as the new top focus in Washington. The President’s new budget has allocated trillions of dollars for a new jobs initiative, similar to stimulus bills of the past. In addition, Obama pledged to bring jobs back to the United States by getting rid of tax cuts for outsourcing work overseas. A focus on job creation is imperative due to the painfully high employment rates occurring in all states throughout the past couple of years. More than just being an issue of having a job, unemployment has had widespread effects, such as enhancing the mortgage and foreclosure crisis.
With such a politically-polarized Congress, one has to wonder if law makers will be able to achieve the goal of more jobs for Americans. In attempts to reconcile political differences, Obama met with Republican lawmakers last weekend here in Baltimore. The President invited members of the GOP to challenge him and his ideas about how to strengthen the economy and alleviate the pain that so many Americans are feeling.
For more information about current unemployment rates and economic activity, visit EPI’s Economy Track website.
During President Obama’s State of the Union speech, he asked politicians for unity in bringing the American people out of economic hardship. Indeed, elected officials from both sides of the table are going to have to work together to alleviate what the Economic Policy Institute (EPI) has noted is by far the worst economic crisis since the Great Depression. These measures take into account both severity and longevity.
Obama told Congress and millions of Americans that the worst of the storm is over, but devastation remains. Unfortunately, the devastation may remain for quite some time as the administration admitted that even with all the spending and other initiatives to create new jobs, the unemployment rate is unlikely to change a great deal by the end of 2010. In fact, the predicted national unemployment rate at the end of 2010 is 9.8%, a small change from the current level of 10%. That number is expected to improve over the next few years, reaching 7.9% by the end of 2012.
Moving forward, Obama stated job creation as the new top focus in Washington. The President’s new budget has allocated trillions of dollars for a new jobs initiative, similar to stimulus bills of the past. In addition, Obama pledged to bring jobs back to the United States by getting rid of tax cuts for outsourcing work overseas. A focus on job creation is imperative due to the painfully high employment rates occurring in all states throughout the past couple of years. More than just being an issue of having a job, unemployment has had widespread effects, such as enhancing the mortgage and foreclosure crisis.
With such a politically-polarized Congress, one has to wonder if law makers will be able to achieve the goal of more jobs for Americans. In attempts to reconcile political differences, Obama met with Republican lawmakers last weekend here in Baltimore. The President invited members of the GOP to challenge him and his ideas about how to strengthen the economy and alleviate the pain that so many Americans are feeling.
For more information about current unemployment rates and economic activity, visit EPI’s Economy Track website.
Thursday, February 4, 2010
Federal Government to Ease Its Involvement in Real Estate
By: Salina Greene, Outreach Coordinator, NHS of Baltimore
Over the past year, the federal government has been instrumental in reviving the housing market by driving down mortgage rates through relief aid. Unfortunately, this is coming to an end this coming March. The government has decided to pull out. The decision to end federal support for mortgage rates will have a deep impact on the Obama administration. If the market thrives, it will be proof that we are heading towards a stable economy. If it falls again, homeowners may face another wave of trouble.
As of last year, the government pledged more than $1 trillion to help new and existing homeowners secure mortgages at the lowest rate possible. Without this aid, millions would not have been able to re-finance their homes, nor could some first-time homebuyers afford their new homes. When the government pulls out, there could be a surge in mortgage rates. To a point, the market has become dependent on the U.S. financial administration’s support in order to stay afloat. If policies change too quickly, the government could lose some creditability with the financial markets. Mortgage rates are the lifeblood of the real estate market. A sharp increase in rates can cause the housing market to stall, as homes become too expensive for many buyers to afford.
Many industry advocates disagree with the government’s decision to withdraw so soon in the current financial crisis. They are concerned with the potential of higher rates and slower housing sales. Although policymakers periodically decide on a base percentage for mortgage rates, the loan rates are largely based on the health of the market.
In the past, banks created large pools of home loans and turned them into mortgage-related securities that were traded on the open market. Investors would purchase these securities, therefore funneling money to potential lenders. When the financial crisis struck, the securities trade froze up. Fearing a major collapse of the housing market, the government stepped in and became the only major buyer of these mortgage-related securities.
Thanks to federal efforts, refinancing and home buying surged. Now, with the government ending their support of low rates, the future of the rates is uncertain. While some feel the government should gradually withdraw from the market, the government is confident the rates will only rise a faction of a percentage point. This will give us some ray of hope during this time of recession.
For more information, go to the U.S. Department of Treasury website: www.ustreas.gov. There are several useful articles on the website relating to home buying and re-financing.
Over the past year, the federal government has been instrumental in reviving the housing market by driving down mortgage rates through relief aid. Unfortunately, this is coming to an end this coming March. The government has decided to pull out. The decision to end federal support for mortgage rates will have a deep impact on the Obama administration. If the market thrives, it will be proof that we are heading towards a stable economy. If it falls again, homeowners may face another wave of trouble.
As of last year, the government pledged more than $1 trillion to help new and existing homeowners secure mortgages at the lowest rate possible. Without this aid, millions would not have been able to re-finance their homes, nor could some first-time homebuyers afford their new homes. When the government pulls out, there could be a surge in mortgage rates. To a point, the market has become dependent on the U.S. financial administration’s support in order to stay afloat. If policies change too quickly, the government could lose some creditability with the financial markets. Mortgage rates are the lifeblood of the real estate market. A sharp increase in rates can cause the housing market to stall, as homes become too expensive for many buyers to afford.
Many industry advocates disagree with the government’s decision to withdraw so soon in the current financial crisis. They are concerned with the potential of higher rates and slower housing sales. Although policymakers periodically decide on a base percentage for mortgage rates, the loan rates are largely based on the health of the market.
In the past, banks created large pools of home loans and turned them into mortgage-related securities that were traded on the open market. Investors would purchase these securities, therefore funneling money to potential lenders. When the financial crisis struck, the securities trade froze up. Fearing a major collapse of the housing market, the government stepped in and became the only major buyer of these mortgage-related securities.
Thanks to federal efforts, refinancing and home buying surged. Now, with the government ending their support of low rates, the future of the rates is uncertain. While some feel the government should gradually withdraw from the market, the government is confident the rates will only rise a faction of a percentage point. This will give us some ray of hope during this time of recession.
For more information, go to the U.S. Department of Treasury website: www.ustreas.gov. There are several useful articles on the website relating to home buying and re-financing.
Subscribe to:
Posts (Atom)
Posts
+for+blog.jpg)
.JPG)
.jpg)
.JPG)
.JPG)
