Give to Haiti But Be Aware of Scams

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

In wake of the recent tragedy in the Caribbean, scams are on the rise involving donations to help the victims of Haiti. Increasing numbers of people are looking for a charitable organization or relief agency to donate their funds and time. Unfortunately, this is an opportune time for thieves to take advantage of innocent victims looking to help their fellow man. Be suspicious of individuals representing themselves as victims and asking for donations via e-mail and social networking sites.

Viruses may be present in e-mails claiming to show you pictures of the disaster areas in attached files. Be cautious when you enter your credit/debit card information through the internet. Make sure it is a secure line. Finding out exactly where donations will be going and what type of assistance the organization is providing can save you from becoming a victim of fraud. Fraudulent charities will likely emerge during this difficult time.

Whenever there is a natural disaster, home or abroad, two major things tend to happen. One, Americans are eager to donate their time, money, and resources. Two, a number of poorly-run or fraudulent charitable organizations spring up overnight. The Federal Bureau of Investigation (FBI) is asking people not give any personal or financial information to anyone who asks for donations. This may make you vulnerable to identity theft or worse. On a lighter note, to ensure your donation is tax deductible, your donations should be made to a U.S. based charitable organization who has a 501(c)(3) status. This means the organization is a tax-exempt non-profit.

There are several reputable organizations and groups willing to accept donations that will go directly to the needs of the victims: UNICEF, The American Red Cross, Yele Haiti, and the Haiti Earthquake Relief Mission, just to name a few legitimate ones. Take the time to research and verify each organization, or person, asking for donations as I know a few people are looking for somewhere to give. Please remember to be safe about it.

What Tax Credits Are Your Eligible for This Year?

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

If you have been following this blog over the past few months, much attention has been given to the homebuyer tax credit. In addition to this credit, there are many other changes launching this tax season. The American Recovery and Investment Act of 2009 is a law that affects tax payers both on an individual and a business scale. This legislation is part of an economic stimulus bill designed to expand tax cuts and other social welfare programs. You can find out more information about how this money is being spent by checking out Recovery.gov.

Concerning taxes, many credits were either implemented or expanded and will affect your tax rebate this year. For instance, you may be eligible to receive up to $5,657 back for the Earned Income Tax Credit (EITC), depending on your filing status and how many children you have.If you are currently receiving unemployment benefits, or did at some point during 2009, you will not be taxed for the first $2,400 of those benefits this year.

Another way tax credits have changed is by expanding the requirements for eligibility. This year, more students will be eligible for the American Opportunity Credit for college expenses. Tax credits are also available for things such as child care expenses or the sales tax of a new vehicle.

Make sure that you get all the refunds you are eligible for this tax season. Beware of losing money by utilizing expensive tax preparation services or by taking out a Refund Anticipation Loan (RAL). File your federal taxes electronically using the Free File system made available through the Internal Revenue Service (IRS).

In Baltimore, there are free tax preparation services available if you are a family making less than $49,000 or an individual making less than $25,000 in 2009. NHS of Baltimore is one of the sites providing these free services through a partnership with the Baltimore CASH Campaign. To schedule an appointment at our site, call 410-327-1200. To view a list of other free tax sites around Baltimore, click here .

Tax Season Scams In Full Swing

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

Tax season is quickly coming upon us and scammers are already lining up to take advantage. Last week, I received an e-mail that appeared to be from the Internal Revenue Service (IRS)- the contents of the e-mail included a believable e-mail address, office@2010-irs.gov, a calculation of my fiscal tax year activity stating my eligibility to receive a tax refund, complete with an amount owed and a link to a PDF file requesting some personal information required for tax refunds. It was a scam. The number one tip-off being e-mail address listed above.

“The IRS does not discuss tax account matters with taxpayers by e-mail,” nor does it, “request detailed personal information through e-mail, send e-mail requesting your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts,” as clearly stated on their website. Furthermore, all IRS.gov web page addresses begin with, http://www.irs.gov/.

A lot of people may be tempted to submit personal information as we struggle through this recession. In order to protect yourselves from predatory scammers, always double check that the information you are receiving is valid and from reputable companies. Identity theft is on the rise at an alarming rate. Just a few years’ ago, scammers would solicit a person’s personal information over the phone, through the trash, and through mailings. Today, scammers have learned to manipulate, and infiltrate the internet and e-mail systems.

Armed with a victim’s name and social security number, scammers can rob your financial accounts, run up charges on your credit cards, and apply for new loans, benefits, and other consumer services. If you suspect any fraudulent activity involving misuse of the IRS name, logo, or other properties, please report it directly to the IRS by forwarding the e-mail as is to, phishing@irs.gov. You can also call the Treasury Inspector General for Tax Administration (TIGTA) toll-free at 1-800-366-4484 to report these scams.

To read more about what you can do to avoid and report scams, click here.

Artist Tells Stories of Recession Hardships in a Whole New Way

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Most of the information we hear about the recession is in numbers and percentages. While statistics can be useful, they are not always practical. For instance, we may read that employment rates are improving by some percentage but often cannot relate to the numbers. And it can be discouraging to see numbers about how things are picking up when we may not feel that way ourselves. Statistics can be impersonal, disconnected from every day life, and even misleading.

In contrast to rates and percentages, one woman is taking the initiative to bring personal stories of hardship to a whole new level. Lori Nelson began her “Souvenirs of the Recession” project by documenting economic events through carving pieces of wood. At one of her art shows, her “Recession plaques” inspired viewers to relate their own experiences with the economic crisis. Lori now invites individuals to share their stories of personal hardship which she recreates in art pieces and broadcasts on her website. The whole project was inspired by Studs Terkel’s series of interviews, “Hard Times”, which documented experiences of individuals living through the Great Depression.

Far more memorable than statistics, personal stories of hardship can teach us a lot. Nelson says that she is “grateful that Terkel had gotten people to open up to him so that we now can try to understand the intricacies of the Great Depression and learn from and perhaps even relate to them.” Indeed, many people are relating to one another through similar difficulties. Hearing about the hardships of others, though sad, can be encouraging in that it displays to us that we are not alone in these trying times. Part of what Lori wishes to accomplish through her artwork is to diminish the shame that so many people feel in an economic downturn. She has “noticed that when people hear others’ personal stories, they are more open about their own experiences.”

If you would like to share your recession story for the project, contact Lori Nelson.

Borrow and Save Loan Program Helping People Bridge the Financial Gap

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Back in September, Neighborhood Housing Services of Baltimore (NHSB) and the Baltimore Alliance for Economic Inclusion (BAEI) unveiled the Borrow and Save Loan program. The program allows individuals to borrow anywhere from $300 to $1000 which can be repaid over the course of a year, with no pre-payment penalties and borrowers must take a financial fitness class at NHSB and contribute a minimum of $5 per month to a savings account that is matched upon repayment of the loan.

This method of lending is meant to combat “Payday” loans which have extremely high interest rates and can lead to continuous cycles of debt. In Maryland, vendors can charge interest rates up to 36% for so called “cash advances” and “pay-day” loans- the interest rate for the Borrow and Save program is 7.99%. Program participants will be able to use this loan to improve their credit score while learning healthy financial principles. Thus far, the program has provided 79 low-to-moderate income families and individuals with more than $58,100 in loan money. Many of these participants have used the loan money to help them catch up on bills, pay utilities, or make repairs on their homes.

If you or someone you know is in need of a small dollar loan, consider applying for NHS of Baltimore’s Borrow and Save program. As a nonprofit, we’ll get you the money you need to bridge the financial gap in your life, while providing you with financial education for the future. Applicants will be considered on a first-come, first-serve basis.

Since this program is still in it’s pilot stage, only individuals residing within East Baltimore zip codes (21202, 21205, 21213, 21224, and 21231) are eligible. Call NHSB at 410-327-1200 for more information or to apply. Click here to download the application online.

Women are Hard Hit Victims of the Mortgage Crisis

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

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

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

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

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

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

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

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

Renters Risk Losing Homes in Foreclosure Too

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

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

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

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

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

Keeping Your Credit Score Healthy During the Holidays

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

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

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

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

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

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

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

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

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

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

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

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

Holiday Green Tips

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

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

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

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

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

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

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

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