Baltimore Homeownership Blog

Would a Foreclosures-to-Rentals Program Benefit Only the 1%?

2012-01-19T10:09:00.004-05:00

On December 27, 2011, John Gittelsohn, of Bloomberg News, reported that the Federal Housing Finance Agency (the regulator and conservator of Fannie Mae and Freddie Mac and the regulator of the nation’s twelve Federal Home Loan Banks) had issued an RFP for ideas related to turning a portion of their expansive inventory of repossessed homes into rental units. The government’s strategy seeks to “reduce losses, stabilize neighborhoods and support housing values.” *

Among the four hundred-plus “valid” proposals received were submissions from the same financial and investment companies that played a part in the housing bubble and collapse, including Deutsche Bank AG, Fortress Investment Group LLC, Carrington Holding Co., Barclays Capital Inc., and UBS AG. With more than 6 million homes expected to be repossessed by banks by 2016, with Fannie Mae and Freddie Mac servicing more than half of all US home mortgages and with the demand for rentals far outstripping the demand for home ownership, a foreclosure-to-rental program could have a substantively positive effect on the stabilization of real estate values.

Or, conversely, is it another opportunity for the same investors who sold the American Dream of home ownership down the river to gamble yet again with the national housing market and the U.S. economy? Will turning foreclosures into rentals in bulk benefit Wall Street more than Main Street?

*“Firms Give U.S. Plans to Rent Seized Homes,” by John Gittelsohn, December 27, 2011 12:01 AM ETTue Dec 27 05:01:00 GMT 2011

– Susan H. Tifft, NHS of Baltimore Resource Development Committee

Link to the article here

Almost 18? Do you REALLY know the new laws that apply for credit cards?

2011-07-26T11:43:00.003-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

In dealing with growing pains of the teenage years, many children cannot wait until the age of 18. According to them, this is the age where they become officially grown and the sky is the limit, right? Wrong. Yes, at age 18, Americans become eligible to vote, enter the military, serve on a jury and marry without parental consent, in most states. But recent laws have prohibited the milestone of getting a credit card.

What many soon-to-be-18-year-olds don’t know is that President Barack Obama signed into law the Credit Card Accountability, Responsibility and Disclosure Act of 2009. The bill restricts credit card issuers from raising interest rates without warning, penalizing customers who pay on time and levying excessive fees. There's also a provision that specifically concerns young people: Under the new law, no one under age 21 can get a credit card unless a parent, guardian or spouse is willing to co-sign or unless the young adult has proof of sufficient income to cover the credit obligations.

According to Sen. Barbara Mikulski, D-Md., the bill aims to prevent credit card companies from "targeting college kids to weigh them down with debt before they even graduate.” Research shows that this law should have probably been taken into effect years ago. In April, student loan corporation Sallie Mae released a national study that examines the use of credit by undergraduates. The study found that in 2004, 76% of undergrads had at least one credit card. Today, 84% do. The average amount students say they charged to their credit cards to pay for education expenses (such as school supplies) has increased from $942 in 2004 to $2,200 currently. What's more, 82% of undergrads with cards report that they do not pay off their full balances every month, and the median debt among this group is $1,645, compared with $946 in 2004.

Due to the lack of financial literacy steps being taken to educate college students effectively about the pros and cons of credit cards, I think that this policy was long overdue. In Freshmen Seminar classes, they have professors trying to explain the financial advantages and disadvantages of credit cards. Because these professors are not financial experts, students still do not have the proper understanding of credit before they sign up for numerous credit cards. I think all institutions should incorporate a financial literacy course in their curriculums taught by certified advisors. This will save a lot of people’s credit in the long run.

Foreclosure Prevention: Be Proactive

2011-06-22T10:22:00.000-04:00

By: Rena Somar, Homeownership Advisor, NHS of Baltimore

Why is it important for a borrower to contact a lender and a housing counselor?

Contacting your lender is a necessary component in foreclosure prevention, but it can also be very intimidating. Seeking the assistance of a housing counselor provides assurance that there is a trained professional advocating on your behalf as well as uncovering the options that are available to save your home. Typically, the borrower and the housing counselor will make a conference call to the lender. Once it is determined that there is a course of action available to prevent foreclosure, the lender will send you a modification packet in the mail. Most lenders will encourage you to contact a counseling agency to get credit counseling but beware of foreclosure scams.

There are, however, some agencies that claim that they can get you a modification, but then ask you for a fee for their services. According to U.S. Department of Housing and Urban Development (www.hud.gov), “Foreclosure prevention counseling and homeless counseling services are available free of charge through HUD’s housing counseling services. Housing Counseling agencies participating in HUD’s housing counseling program are not permitted to charge consumers for these specific housing counseling services”. To report these scams you can visit Loan Modification Scams Alert at www.LoanScamsAlert.com .

Once you’ve contacted a HUD approved counseling agency, a counselor will help you complete the modification packet that the lender sent to you. Completing the packet correctly is very important, especially the budget, because it will determine the type of modification you may receive if your packet is approved. Even though you are working with a counselor, the lender usually will contact you and not the counselor. Therefore, it is very important for you to keep in touch with the counselor and lender if there are any changes in your finances or if you receive any notices from the lender. Once a complete packet is confirmed by the lender, it is then reviewed. This process may take anywhere from 30 to 90 days before a final decision is made on the application. Always remember to call your lender every 2 weeks to get an update and always ask them if there are any documents that they need updated. Foreclosure is a difficult and unpleasant experience, but if you don’t ask for help you may lose your home in a foreclosure sale. So if your mortgage is late, don’t wait, call your lender and a housing counselor today.

Consumers Be Aware!

2011-05-23T10:49:00.002-04:00

By: Robert Horton, Loan Officer, NHS of Baltimore

All of us have bills; some people have more than others. Due to unforeseen circumstances, some bills are not paid on time or not at all. This could be a temporary situation or a long term one. Regardless of the length of time, a person will be placed in a collection department of a company or a collection agency. When this is done, there are rights that consumers have.

The specified time for collectors to call is from 8:00 a.m. to 9:00 p.m. If a call is made prior to 8:00 a.m. or after 9:00 p.m., the collector is in violation of the law. The consumer has the right to file a complaint with the FCC (Federal Communications Commission).

A consumer cannot be threatened by a collector in any way. This is a violation of the law. The consumer does not have to listen to any threats from any collector and should report the collector and the company to the FCC.

When a person fails to answer the telephone, a message is left on his or her voicemail most of the time. Some messages are funny, some are serious, some long, and some short. A collector is supposed to leave only his or her name, telephone number, and company name. This is appropriate. If anything else is left, this is a violation because the person that the message was intended for may not be the one who listens to it. Information about the debt heard by another on a voicemail is a violation of privacy laws.

Collectors are not to discuss a consumer’s debt with another person. This is a violation of federal privacy laws. If done by a collector, he or she and the company are in trouble with the federal government and should be reported.
There are more consumer rights, but these are the four most violated by collectors. Consumers must be aware of their rights at all times. If you feel that your consumer rights are being violated, you can contact the FCC to file complaints.

Home Values: How Your Neighbors Can Hurt The Value of Your Home

2011-05-02T09:35:00.001-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

When people think of bad neighbors, they simply think of nuisances who you may have to see as you come and go. What consumers don’t know is that bad neighbors aren’t just annoying, they can cost you real money when it’s time to sell your home.

An overgrown yard, peeling paint, and clutter can easily knock 5-10% off the sale price of your home. If you are looking into buying a property and the neighbor’s yard looks as if the may be a hoarder, you probably should reconsider. If you have already purchased a property and neighbors become a problem later, there are several things you can do:

Approaching your neighbor in a friendly, good manner is always a good start. A nice way to suggest that your neighbors do some maintenance on their property is refer them to free or low-cost services that will help them keep up their property. Habitat for Humanity is one of several organizations that have programs offering exterior painting, landscaping, weather-stripping, and minor repairs to low income home-owners. A lot of local governments offer these programs as well.

When dealing with this kind of issue, it is very important to find out if your sloppy neighbors are tenants or owners of the home. If the person in the home is a tenant, the first thing you should do is track down the owner. A real estate agent can help you do this or you can contact your county’s property-tax assessor’s office. After you identify the owner, a letter needs to be written to them that is complete with photos of the problem and a request in action to solve the problem.

Another resource you can use is a homeowners association. If you have a homeowners association, which most people do, you can request that it take action. Your city or county’s public health department may be able to step in if trash or unsanitary conditions are a part of the problem.

If none of these options work, you can always add features to your property to make up for neighbors problems. Putting up a privacy fence or tall hedge could downplay the issue.

Social Networking and Your Neighborhood

2011-03-21T11:20:00.001-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

It’s no secret that neighborhoods flourish due to the efforts of their residents. In today’s world with people who are very selective about which neighborhoods they will reside in, a simple community clean-up or festival every now and then may not be enough to make people want to live in your community.

When you think of Baltimore city’s ‘eclectic’ neighborhoods, areas like Mt. Vernon, Fells Point, Federal Hill or Canton may come to mind. However, these are not the only places in Baltimore where the good times roll. This is where neighborhoods need to find a medium to share the excitement of their neighborhood with others. ENTER: social networking.

Social networking sites such as Facebook, Twitter, and Foursquare are changing how we operate these days. These sites are great methods to give your neighborhood a way to interact with prospective residents in addition to your current residents.

When considering a neighborhood to live in, people want to know what that neighborhood has to offer. For example, are there certain necessary stores nearby, hangout spots in the area, and people with children want to know if there are things for kids to do.

One of the best ways to let people know about the cool spots in your area is through Foursquare. Foursquare is a location-based social networking site that can be used on smartphones to “check in” at different venues. Foursquare is a great way to make people aware of the attractions in your neighborhood and how popular they are with the residents.

Before moving to a neighborhood, people also want to know a bit of information about the type of residents that already live there. This is an excellent way to make Facebook work for your community. By creating a business page, potential residents can get an insight to what type of people already live in the community and what is going on in the area. How many friends your neighborhood page has on Facebook and Twitter can also give prospective residents an idea of how involved people in the community are.

Hopefully community organizers will realize that people are no longer moving into neighborhoods based on word-of- mouth marketing and befriend the social networking epidemic. With a housing market that is still in an unsure state, when people buy in certain neighborhoods they may not able to sell and move out as quickly as they want to if things get to that point.

The Federal Deficit: How will this affect you?

2011-02-28T14:29:00.001-05:00

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

Many Americans consider the Federal deficit to be the most important economic problem of our time. In response to this problem, the House of Representatives has proposed a series of cuts in the housing field that are draconian. We are not taking a position on the need for a balanced budget or the reining in of government spending, but we thought all of you should know what impacts some of these proposed cuts could have on NHS and our community.

Community Development Block Grants (CDBG)

CDBG is a federal program that funds a wide variety of community and economic development programs at the local and state level. The program offers local and state governments a wide latitude of ways to invest these funds. They are used to fund everything from housing counseling to infrastructure improvements. The House has recommended a 63% cut. If passed by the Senate, the NHS would have to lay off over half its staff. We would no longer be able to help families become homeowners, stop foreclosures or lend to clients.

Housing Counseling

The need for fair unbiased information about home buying is greater than ever. The economic crash was driven by bad mortgages to uninformed borrowers. Counseling is one of the proven ways to avoid this event from happening again. The House has zeroed out the counseling budget, this means NHS would have to lay off the majority of counselors. Hundreds for families would no longer be able to get the training they need to make the best decisions for their future.

Home Affordable Modification Program (HAMP)

The House is currently considering ending the program. Although this program is not perfect, it can be fixed. HAMP is currently one of the best tools we have to prevent foreclosures. If HAMP is abolished, hundreds of families in Baltimore will lose their homes.

These are tough times which call for tough decisions, but they have to be smart decisions.

Housing: How To Invest Your Tax Return

2011-02-22T12:32:00.001-05:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

Whether or not you have filed your tax return, how you will spend your tax refund always comes to mind around this time. Investing some money from your tax refund is one of the best ways to spend it. However, before you make the decision to invest your tax return, you should think about how your refund fits into your investment strategy. For homeowners or people looking to become homeowners, this refund could have a long term impact.

One of the biggest things you may want to consider when thinking about investing is your housing fund. In order to receive the best possible interest rate on a house and avoid private mortgage insurance, it is smart to have a good amount of savings for your down payment. Other programs and housing incentives can assist you with your down payment.

Using your tax refund to eliminate current debt is another good investment if you are looking to buy a home. Eliminating debt with the highest interest rate will cost you less money in interest in the long run. With current credit card interest rates usually being 14% at the minimum, paying off your debt is an excellent investment. The higher your credit score, the better deal you will be able to get on a house.

If you are a homeowner, investing in your home may be the best investment that you will ever make. There are many affordable ways of investing your tax refund to increase the value of your home. Upgrades and improvements to the kitchen or bathroom are great ways to maximize a return on the investment of your home. This investment could prevent major problems down the road as your house gets older. Also if for some reason you ever choose to sell your home, you have increased the value of it. Renovations to your home may also be written off on your tax return for the following year.

Another good investment for homeowners is paying down the principal of your mortgage. Contributing additional money to your mortgage will allow you to pay the loan off sooner and you can save thousands of dollars in interest over the life of the loan. Interest rates are currently lower than ever, so if you are eligible to refinance your hope this may be a good option as well.

Although a tax refund cannot change your future by itself, it can have a long-term financial impact. For more ideas on how to invest your tax refund, you may want to opt to take a free financial fitness class.

It’s Never Too Early: Kids Can Be Financially Fit Too!

2011-01-26T12:12:00.001-05:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

It should come as no surprise to anyone that there are many benefits to saving money at a young age. Children can use this money to save for college, back-up savings for adulthood, or even to buy their first car. Although saving money is not easy, it may be easier to for children to risk the temptations than adults.

With the current state of our economy, many kids are making the decision to save money at a young age. I believe that as soon as children begin to receive allowance, parents should initiate a savings plan. This plan should consist of long term goals and short term goals.

The first step to saving money is setting a savings goal. This goal will determine how much you save every week or bi-weekly when you receive your allowance. An effective way to determine your savings goal is to figure out how much you want to have by a certain date. For example if you want to save at least $300 a year, your savings goal would be roughly $25 per month.

After the savings goal is initiated, parents should open up a savings account for their child. Because of the lower fees credit unions offer, this may be the better option for a child’s savings account. Credit Unions also serve as the better option because the parents must be with the children if they want to withdraw money.

As an alternative to getting an allowance, teens may want to consider other ways to make money. Some of these options may include babysitting, lawn mowing, selling baked goods, shoveling snow, flyer distribution, selling Avon products, or summer positions with organizations like YouthWorks.

A big help to ensure that children will save money is for parents to be role models to their children. Parents may want to sit down with their kids and discuss with them the benefits of saving. For example, statistics on how much quicker a person can buy a house based off the money they save or being able to travel out of the country. Also, taking a financial fitness course with your teenage child could be a big help. This financial fitness class will teach your kids how to manage money while still living on a budget, most importantly the class is free of charge.

Regardless of how old one is, financial fitness will always be an important factor. The earlier children understand this, the better off they will be in the long run. For more information about Financial Fitness courses, please contact Neighborhood Housing Services of Baltimore.

BE TAXWISE!

2011-01-04T10:12:00.002-05:00

By: Operations Department, NHS of Baltimore

As a new year begins, this is the time to begin thinking of how to be financially savvy and save for your rainy day. Knowing the Ins and Outs to building assets for your family’s future - even your own - is critical during these rough times. As such, participate in a financial fitness workshop to find new and innovative ways to shop, save and invest. But while thinking about your future, stop by our office to get your taxes prepared and to receive information about literacy workshops. At our site, we will offer clients (those making below $49,000) the opportunity to open savings accounts, purchase savings bonds and receive direct deposit of their refund into their accounts. The service is FREE through the Baltimore CASH Campaign!

Now that the new year has started, its time for families and individuals to pull out those well organized receipts and hoarded papers from 2010. While this may be a cumbersome task, at least you will see a benefit from your madness. For those who are not itemizing this year; your process is plain and simple, just present the W2(s) and Social Security Cards for you and your dependents. For incentives this year, there will be the usual Earned Income Credit, Child Tax Credit and Dependant Care Expense. And, Homeowners who have gone through foreclosure will have the opportunity to write off their debts – to include credit cards. This can only happen if your Lender/Creditor has cancelled your debt to which you would have received a letter or statement showing the amount written off. Another incentive is Energy Efficiency; if you purchased and installed an energy efficient furnace, windows, doors, air conditioning units, etc. you may qualify for a credit this year. You MUST have all receipts to document your purchase and installation.

Where there is good news, there is Bad news. First-time homeowners that received an $8000 credit in 2008; now is the time to begin paying back that money. It can be done in installments over a period of time until paid in full. This is a line item on the tax return this year. Sorry; it was not a gift.

In order to get detailed information regarding any of the items mentioned above please visit the IRS website.

NEWS: Interested in knowing how new tax laws affect your bottom line; click here.

Tax Calculator
The calculator is a tool to help you understand how current tax policy affects real families and what would happen if we changed that policy. With this version, you’ll be able to compare three alternative tax policies to see how different taxpayers would make out in either 2010 or 2011:

• 2010 law with all of the 2001-2003 tax cuts and the 2009 stimulus tax provisions still in place;
• 2011 law with scheduled expiration of the 2001-2003 tax cuts (often called the "Bush tax cuts");
• tax law in the compromise plan agreed to by President Obama and congressional Republicans that would extend the 2001-03 tax cuts through 2012 and make other temporary tax changes.

You can also turn the alternative minimum tax (AMT) "patch" on or off to see how raising the exemption affects whether taxpayers must pay the AMT.

Note: The Tax Calculator estimates the impact of proposed tax policies on typical family status.

See you on January 24th for those that are getting taxes prepared at our site!

Tax Prep Office hours: 10-3p.m. Monday – Friday; 10-1p.m. Saturdays (January 29th – March 5th).

Top 10 Ways To Weatherize Your Homes

2010-12-21T10:52:00.002-05:00

By: David Fielder, Rehab Specialist, NHS of Baltimore

1. Install blown-in insulation or fiberglass insulation in your attic. Also, cut foam insulation to fit in between floor joists if the room is over a crawl space. You will need some adhesive to make the foam stick in place. The insulation keeps the warm air in at winter time and the cool air in at summer time.

2. Close up any air leaks with spray foam or caulk. When the forecast is for wind, check doors, windows and around basement walls for air leaks. You may also want to call Baltimore City’s Weatherization program at 443-984-1066 for assistance in sealing air leaks and other energy saving measures. This is a FREE program to income eligible folks.

3. Install weather stripping around doors and windows. You can find many products at the hardware store to take care of air leaks. These products mostly have adhesive backs that you can peel and stick on windows and doors. Another good product is the sheet of plastic that covers your windows. Applying this to your window takes a little patience but when done correctly no one will know it is there.

4. Wrap hot & cold water pipes with foam insulation & install a hot water tank blanket. The insulation prevents the hot water pipes from losing heat and will keep the cold water pipes from freezing. The hot water tank blanket will prevent the tank from losing heat.

5. Install programmable thermostat. Decrease the thermostat 2 degrees in winter and increase 2 degrees in summer. This will save a few dollars each month that will add up over the year.

6. Have your furnace checked and cleaned each year. Most energy providers provide a maintenance service to customers. If you have a boiler, you should drain water once a week. This keeps the boiler clean and free from rust which shortens the life span of the boiler.

7. If you have a forced air furnace with duct work, insulate the ductwork. The U.S Department of Energy reports that a heating system can lose 60% of the heated air before reaching the vents in your rooms. If you have old ductwork, having the system cleaned will help your indoor air quality.

8. Clean the gutters from leaves and debris. Make sure the water is flowing from the gutter to the downspout an out. In cold weather ice dams can build up at the gutter. Melting ice water has no place to go but in to your house and down your walls. Keeping gutters clean will prevent this from happening. Water damage walls can be costly to fix.

9. Reverse the direction of ceiling fans. There is a switch on the body of the fan to reverse the direction the fan rotates. When you reverse the direction of the fan, it will push the warm air down. Don’t forget to reverse it in the summer.

10. Make this the season to check you smoke detectors and carbon monoxide detectors. Baltimore City has had several large fires recently. This should be enough incentive to make sure all detectors are working and have fresh batteries. Better yet, have a certified electrician install hard-wired detectors in your house one per floor. You will not have to check batteries again.

Is Buying a Home One of Your New Year's Resolutions?

2010-12-07T10:03:00.001-05:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

Due to the fact that many homebuyers look to purchase in the summer months, there can be many advantages to purchasing at the end of the year. During this time you can take advantage of motivated sellers trying to meet a quota before the end of the year, also you will have readily available moving help because movers are not typically busy during this time.

If you close on your new home by December 31st, you can deduct your equity costs and property taxes on your income tax return. Because you are bound to pay a lot of interest at the beginning of the year, this can save you a lot of money. As the year comes to a close, most builders and realtors off excellent incentives to buyers so that they can sell as many houses as possible. Buyers should definitely take advantage of these types of offers.

Another benefit to home shopping at the end of the year is that many current homeowners sell their homes around this time in an effort to get a tax deduction that will help them purchase a newer home. This is where the prospective homebuyer has to put their negotiation skills into play. Because these current homeowners are so eager to sell their homes, you may be able to get them to go down on the asking price. If you feel that it is risky to handle the deal on your own, you should consult with a HUD certified homeownership advisor or a real estate professional.

If you are seriously considering purchasing a home before the year ends, it is important that you don’t wait until the last minute to start looking into your options. If you wait too late, your choices will be very limited. You should begin looking around September to give yourself enough time to find the right home. Also during the month of September, you should consider attending Live Baltimore’s Homebuying Fair. If you are looking to move into the Baltimore City area, this program offers tours and great incentives.

Regardless of when you plan on buying a home, you should always make room to take a homebuyer education course and get counseling from a HUD certified homeownership advisor. This will make your process a lot less stressful, and will be beneficial in the long run as well.

Keep Your Finances In Shape This Holiday Season

2010-11-30T12:40:00.002-05:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

When it comes to holidays many of us sometimes get above ourselves with gift-giving and it takes a hefty toll on our budgets. Many people have a crazy misconception that its “priceless” to create a picture perfect holiday experience. This thinking will put a strain on your budget and the last thing you want to do is start off a new year with your finances in shambles.

All of the financial troubles that come with the holidays can be avoided if you think with your head and not your heart throughout the process. A significant step is making sure that all of your major bills are paid before you start holiday shopping. Things like rent or mortgage, gas, electric, water, and phone bills should be prioritized over a hefty price tag on a gift you brought. Also things like food and any medication you may need should also be kept in mind.

One major “no-no” when it comes to the holidays is spending important bill money because you are depending on a monetary gift that you think you are not guaranteed to get. The first rule of being financially fit is to be smart with your money.

There are some extra things that we use in our day-to-day lives that we may be able to part with for a month. These things include cable, high speed internet, dining out, and monthly memberships and subscriptions. With innovations like Netflix and smartphones, a month without cable and desktop internet is not so bad.

Another way to save money during the holiday season is to make an agreement with friends and family to exchange gifts after Christmas. This may take away some excitement, but the huge savings will be helpful to your pockets.

Most of all we need to all keep in mind that the important thing about the holidays is to create memories that will last a lifetime, not who is giving the best gift. It should not be hard for anyone to understand that we have all been affected in some way by the economy.

With that said,

Happy Holidays to you and your family from NHS of Baltimore!

Being Prepared When "Life Comes At You Fast..."

2010-11-16T10:26:00.003-05:00

By: Jacqueline Wilson, Loan Processor, NHS of Baltimore

State Farm insurance company has a commercial that depicts mayhem coming upon a person with a slogan “life comes at you fast.” When we see this commercial we can relate because we all have experienced unexpected mishaps from time to time. We try to have “rainy day funds" but we all know that these are very hard economic times and the amounts put away for the rainy day funds seem to get smaller and smaller. As a result, the extra funds to resolve these emergencies and continue to function are not available.

Such mishaps as when the car gets towed and you need it right away to get to work, or the car dies never to be revived and a down payment is needed to purchase a new one. Perhaps you receive a large utility bill or some other unexpected event occurs, there are no savings and the regular bills have to get paid, there is no extra. These are the unexpected occurrences that cause people to consider payday loans as a way out because “life indeed does come at you fast”.

In the past, the payday loan companies went unnoticed and this industry really grew. Nationwide there are 25,000 of these companies ranging from small mom and pop shops to large chains. In Missouri alone there are about 1500 payday loan stores and many of the loans have an 422% APR. Check into Cash in Cleveland Tennessee has an APR of a massive 459 %. What this means is that the consumer writes a check for $300.00 and actually gets $255.00 in cash, the difference of $45.00 goes to fees, it is reported that some of these loans are flipped as many as 8 times and escalate from $325.00 to as high as $793.00 before it is paid. In California alone (a place that has been hit hard by the recession) consumers borrow 2.5 billion dollars a year from payday loan lenders. In an attempt to curve these practices some credit unions and lenders have begun to offer small dollars loans at annual rates as low as 12%.

Taking into account the numbers stated above, the residents of Baltimore City that utilize payday loan services can really appreciate the Borrow and Save Program which is offered by Neighborhood Housing Services of Baltimore, Inc., The program was originally offered in the East Baltimore region – however, due to high demand the program has now been expanded to accomodate consumers citywide. The program was launched in August 2009 to help borrowers break the perpetual short-term borrowing cycle, establish healthy banking relationships, gain personal money management skills, and learn the benefit of savings and asset building.

The program provides loans between $ 300.00 and $ 1,000.00 with repayment terms of six months to a year at an APR of 7.99%. Borrowers who currently do not have a banking relationship are required to open a bank or credit union account to receive the loan. Borrowers are also expected to take a financial literacy course, this course is offered free of charge by NHS of Baltimore in an effort to educate consumers so that they do not have to resort to loans at all.

For information about the Borrow and Save program, please contact Jacqueline Wilson at 410-327-1200 ext. 117.

Fear of Homeownership

2010-10-29T09:30:00.003-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

Despite President Obama’s recent veto to a bill that could speed up foreclosure and Maryland’s new home loan interest rate being at an all-time low of 3.875 percent; many Marylanders are still in fear of becoming a homeowner. With the nations foreclosure rate still growing, I must admit that not a day goes by without me worried about foreclosure affecting me or a family member in the future.

I think most people’s perception of homeownership is that it is very hard to buy a home yet so easy to lose it. In essence, homeownership is perceived as a goal you work so hard for and it can be taken away in an instant. However, this perception could not be further from the truth. Of course there are challenges along the process to homeownership, as there are with every major decision we have to make in our lives.

In most cases of foreclosure, the person has lost their home for reasons that could have easily been avoided. For example, many people looking to own a home fail to receive proper housing counseling at the beginning of the homeownership process. Lack of appropriate knowledge about homeownership that is acquired through housing counseling has caused many people to enter bad mortgages, buy homes they cannot afford, and make crucial mistakes in the loan modification process etc. Also a main factor in foreclosure is people waiting too long to seek help. If you are facing foreclosure, you should seek help before feeling sorry for yourself.

Although homeownership is something you have to work hard for, the goal of sustainable homeownership is not far-fetched. There are an overwhelming amount of programs and incentives that assist with down payment and closing costs. Through the Down Payment and Settlement Expense Loan program, buyers are eligible for $5000 to help with costs. Other homebuying incentives are listed on the Live Baltimore website.

I still have my worries but the knowledge of various counseling, homebuyer education, and foreclosure prevention has eased some of my worries. I believe that if the right steps to homeownership are taken from the beginning, the foreclosure rate would not be as high as it is today. When I am ready to buy my first home, the first thing I will do is make sure I have a homeownership advisor by my side in the process.

So you've decided to buy a home....now what?

2010-10-18T10:45:00.004-04:00

By: Julienne Joseph, Homeownership Advisor, NHS of Baltimore

Buying a home is one of the largest investments you will ever make. Once you have made the decision to purchase a home, there are steps that need to be taken. Being informed and prepared for the process alleviates the anxiety and stress of the process.

Step 1: Getting Your Ducks In a Row

Once you have determined that this is the time to buy, start gathering the documentation your lender may need in order to secure your financing.
- Homebuyer Certificate. Enroll and Complete a Homebuyer Education Course. Certification may be required (prior to submitting an offer) in order to receive incentives offered by City or State Organizations.
- Your Last Three Years Tax Returns and w-2's
-Most recent 30 days of pay stubs
- 2 most recent statements for all checking, savings, 401k, IRA and investment accounts

These documents will help your Loan Officer accurately evaluate your ability to repay your mortgage and to determine how much of a sales price you can afford.

Step 2: Contact a Lender

A lender is the professional who will provide you with the products and programs a particular bank offers to suit your particular financing needs. Speaking with a lender in the beginning of the process saves time, gas, and money by letting you know just how much buying power you have before you start your search.

Step 3: Consult A Real Estate Professional

Your real estate professional is a key player in the home buying process. They will help you search for the property you wish to buy and represent you in the negotiations of sales price, closing costs, repairs, etc. After receiving your pre-approval from the lender, a letter is issued and given to the real estate professional of your choice to show them that you have secured financing. A pre-approval tells your real estate agent/realtor how much home you can afford. The letter is essential because it narrows your search so the real estate professional won't waste time searching for homes that are over or under your approval limit. At this phase, you will tell your real estate professional all that you are looking for in a home (i.e. number of bedrooms, bathrooms, square footage, etc.). Based on the criteria you provide, they will search their database of available properties and present the homes that meet your needs. Once selected, you and your agent will set an appointment to actually view the property.

Step 4: Make an Offer

You have found a property that you would like to purchase. You and your agent will now submit a contract to the seller proposing the price you are willing to pay for the property. It is common that upon the submission of the contract to the seller, you will provide an Earnest Money Deposit or an “EMD”. The “EMD” is a sign to the seller that you’re serious about purchasing that home. This deposit is held by the broker of your real estate professional until closing and credited towards your closing costs. If the offer is accepted by the seller, the contract is then deemed “ratified”. “Ratification” means that you are now in a legally binding contract that states that you agree to buy the property from the seller and the seller agrees to sell the property to you.

Step 5: Choose An Attorney or Title Company

The title company will be responsible for preparing the documents on your closing day (i.e. The deed, mortgage note, etc.) If you do not have an attorney your lender or real estate professional can recommend one.

Step 6: Get A Home Inspection

After ratification, you will want to get a home inspection. A home inspection will inform you of any repairs that need to be made to the property. It's always wise to get an inspection to ensure that you are aware of the condition of the property.

Step 7: Order an Appraisal

An appraisal will always be ordered by your lender. The appraisal is ordered on your behalf in the name of the bank to make sure that the collateral (the property in this case) is worth what the contract has stated.
*Rule of thumb*. Hold off on ordering the appraisal until you receive the home inspection report. Doing so will avoid you having to pay for an appraisal on a property that you may determine is too damaged to purchase. If the appraiser comes out, before or during your home inspection, you may be responsible for covering the cost of the appraisal even if you choose not to buy the property.

Step 8: Perform the Final Walk-Thru

The inspections are done and your financing is secure. The day of (or the day prior) to closing, you and your agent will take a final look at your property to ensure that it is in satisfactory condition. Once the final walk-thru is done, you are ready to close.

Step 9: Prepare to Close

The title company or attorney has completed your closing package and the final figures are generated. Your attorney will provide you with the amount you will need to bring to closing.

Step 10: Receive Your Keys

All of the documents are signed and you are now a proud homeowner. The real estate agent or attorney will be in possession of your keys until the signing is completed. At that point, they will present you with your keys and the home is now yours!

Consider homeownership to be an investment.....

2010-09-30T16:15:00.002-04:00

By: Sunny Cooper, Special Projects Manager, NHS of Baltimore

More recently, there has been a plethora of articles and commentary as to the decline of homeownership and its decreased financial profitability to the end-Homebuyer. While buying a Home may not reap the huge financial rewards of a few years ago, it is still an investment.

Buying a home is an “Investment in You”

It’s your achievement.
It’s a testament that you did it (made a financial investment) – all by yourself…
You worked hard, saved, went to classes and got your credit in order.
That in itself is your accomplishment. This accomplishment is represented in something tangible – A home.

Buying a home is an “Investment in Your Community”

You made a commitment to invest in a particular neighborhood by buying a home.
You maintain this investment by:
- Cutting the grass,
- Planting fall bulbs for spring tulips,
- Petitioning for speed bumps on your street along with your neighbors,
- Checking in on an elderly neighbor.

These neighborly interactions create a sense of community thus increasing the value of your home.

Buying a home is an “Investment in - Your City”-

The city needs investors who are committed to its success in order for it to thrive.

Potholes are filled, parks are cleaned and school buildings are improved – in part on funding received from property taxes. A strong invested citizen base attracts new businesses that “want” to move to the area. It attracts retail opportunities such as grocery stores and movie theatres. Lastly it demands public services necessary for the health and welfare of all citizens alike.

Gone are the days that the purchase of a home was merely for a – “5 yr Investment Strategy”…

Gone are the days that a home was purchased to be used as “Bank” with which to withdraw equity to fund other jumpstarts…

Hopefully we are returning to the ole’ retro idea – Buying a Home in which to actually “Live”.

Homeowners Insurance: What do you need to know?

2010-09-10T09:58:00.002-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

When it comes to buying a home, most people work very hard to purchase the home and everything in it. It can take many years to build up a home from scratch. People should keep in mind that like anything else in your life, your property is at risk to dangers that are beyond your control. This could potentially wipe out everything you have spent years working hard for. These are primary reasons why one should have homeowners insurance.

Homeowners insurance coverage can offer a peace of mind, and will enable you to pick up the pieces and recoup financial losses in the event that your home or belongings are damaged and destroyed. When taking out homeowners insurance, it is very important to ensure that you are providing yourself with sufficient coverage. The first step to getting homeowners insurance is to find out what your home is actually worth. In addition to estimating the worth of your home, there are other factors to be aware of when purchasing a home.

Shopping around for good insurance prices and coverage plans is imperative. Many insurers have been raising rates to make up for losses they suffered during the financial crises. Also, insurers are competing for new customers meaning some of them are cutting better deals for new policy holders than for existing ones. This is why when shopping around, it is important that you find an insurer who is loyal to you.

Another issue that homeowners run into is having too much insurance coverage. It is very common for policies to contain inflation –protection provisions that automatically increase your coverage amount. Usually that would be a good thing, but now that construction costs have fallen, not so much.

Homeowners should also be aware of their reputation when seeking homeowners insurance. The same way lenders check your credit score to find out what amount to charge you, insurers look to see what claims you have filed in the past. At times, insurance records can be full of errors. Checking your insurance records before you seek coverage is necessary.

When selecting a deductible, you should go with the highest deductible you can afford and use your savings to cover the cost of minor repairs. Filing a claim for every broken window or minor damage can increase your premiums by 10% to 15%. Increasing your deductible from $500 to $1000 can lower your annual premium as much as 25% according to the Insurance Information Institute.

One of the most important factors when it comes to homeowners insurance is the history of the house. Though it seems unfair, claims associated with the property before you buy it can result in you paying more than you usually would. You can get information on past claims by asking for a copy of the seller’s CLUE disclosure report. Although you may be able to negotiate with the seller, you are stuck with the history of the house you buy.

Short Sales

2010-08-19T10:04:00.003-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

A short sale is a sale of real estate in which the proceeds fall short of the balance owed on the property’s loan. Short sale occurs when a borrower cannot pay the mortgage loan on their property but the lender decides that selling the property at a moderate loss is more efficient than pressing the borrower. Using the short sale process as an alternative to foreclosure is easier for both parties because it allows the bank to avoid hefty fees and it will not hit the borrowers credit report as hard as a foreclosure would.

Before agreeing to do a short sale, borrowers need to make sure that they have a precise understanding of its terms. The most important thing borrowers need to know is that the short sale does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, this is known as the deficiency.

Although it may initially seem as if there are no disadvantages to a short sale, borrowers should weigh out all options before agreeing to go through with a short sale. The main advantage to using short sale as an alternative is that it is less damaging to one’s credit and more helpful to future mortgage applications than a foreclosure. Disadvantages to short sales include the extensive paperwork requirements, loss of equity in home, and property tax will still be payable among many others.

When considering a short sale, borrowers also need to be aware of fraud that can occur during the short sale process. Many business journals have reported that lenders have been engaging in fraud during the short sale process. The fraud involves lenders in second position demanding kickbacks in the form of cash payments from the home buyer or real estate agent. These payments are fraudulent because they are not disclosed anywhere on the closing documents or HUD 1 statement which makes them in violation of RESPA (Real Estate Settlement Procedures Act) rules.

If a borrower begans having financial problems and thinks that their home may be in jeopardy, the first thing they should do is seek the advice of a homeownership advisor. There are many non-profit organizations that offer free counseling and have specialty in dealing with foreclosure prevention and the terms of a short sale.

Renters Living In Homes Facing Foreclosure

2010-07-28T14:04:00.003-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

In today’s economy, renters and tenants are now being affected by foreclosure nearly as often as homeowners. The mortgage crises began in 2006 and resulted in millions of Americans losing their homes to foreclosure. Now there are thousands of renters, who without warning, are discovering that there rented house or apartment is now owned by a bank who wants them out because the property is being foreclosed upon.

Many tenants have no clue that their building has been taken at foreclosure. Because of this, they unfortunately continue to pay rent to the former owner who pockets the money but no longer maintains the building since they do not own it. New owners often refuse to make repairs and sometimes fail to pay utility bills. This makes life almost impossible for tenants as long as they are living in the foreclosed property.

Before May 20, 2009, most renters had no rights and lost their leases upon foreclosure. However, this changed when President Obama signed the “Protecting Tenants at Foreclosure Act of 2009.” This legislation states that leases would survive a foreclosure, meaning that the tenant could stay at least until the end of the lease and that month-to-month tenants would be entitled to 90 days. This protection law applies to Section 8 tenants as well.

A tenant who holds a lease and has to move out so that new tenants can move in may opt to sue their former landlord in small claims court. This is possible because after the lease is signed, the landlord is legally bound to deliver the rental for the entire lease term. When a landlord defaults on a mortgage, which sets in motion the loss of a lease, the tenant can sue for the damages it causes.

Today when a rental home is being foreclosed, tenants no longer have to feel like they are between a rock and a hard place. Due to these new rights, being a tenant in a foreclosed home does not mean you are instantly out on the street. There are also other resources that these tenants can utilize for help in these situations. Tenants can speak with a HUD certified housing counselor who will offer responsible, quality advice at no charge. For general information or referrals, tenants can contact the Baltimore Neighborhoods, Inc. Tenant- Landloard Hotline.

Maryland’s Homestead Tax Credit

2010-07-08T13:08:00.002-04:00

By: Sunny Cooper, Special Projects Manager, NHS of Baltimore

The homestead tax credit is a program brought on to help homeowners deal with large assessment on their main residence. The way the homestead tax credit works is that it limits the increase in taxable assessments each year to a fixed percentage. According to state law, every county and municipality is required to limit taxable assessment increases to 10% or less each year. Taxpayers should make sure they are aware of the homestead caps for each local government.

This tax credit does not limit the market value of the property as determined by the Department of Assessments and Taxation. It is a credit calculating on any assessment increase exceeding 10% (or the lower cap enacted by the local governments) from one year to the next. The credit is calculated based on the 10% limit for purposes of the State property tax, and 10% or less (as determined by local governments) for purposes of local taxation. In other words, the homeowner pays no property tax on the market value increase which is above the limit.

Taxpayers who wish to receive the homestead tax credit, should also be mindful of the new application requirements. This tax credit requires that all homeowners submit to a one-time application to establish eligibility for the credit. The application form will be in an assessment notice mailed to a third of the homeowners at the end of December for the next three years. New purchasers of residential properties will also receive this form.

The homestead tax credit will only be granted if certain conditions were meant during the previous tax year. Conditions include that the property must not have been transferred to new ownership, there had been no change in the zoning classification requested by the homeowner resulting in an increased value of the property, and the previous assessment was not clearly erroneous. A further condition is that the dwelling must be the owner’s principal residence and the owner must have lived in it for at least six months of the year, including July 1 of the year for which the credit is applicable, unless the owner was temporarily unable to do so by reason of illness or need of special care. An owner can receive a credit only on one property---the principal residence.

If you have been denied the homestead tax credit, you may appeal the decision if you feel that you are eligible. To appeal you must contact the Central Office for the Homestead Tax Credit Program. A final denial of a Homestead Tax Credit by the Central Office may be appealed within 30 days to the Property Tax Assessment Appeal Board in the jurisdiction where the property is located.

Renting vs. Buying a Home

2010-06-18T10:51:00.002-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

One of the biggest financial debates of all time is arguably the topic of renting vs. buying a home, which one is better? As June is National Homeownership Month, many columnists are putting out articles maintaining that it is more advantageous to be a buyer instead of a renting.

A huge misconception is that the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on mortgage. However, what people fail to realize is that when it comes to renting vs. buying, the tax incentives for homeowners can save them a significant amount of money. For example, a renter may start out paying $800 per month with annual increases of 5%, a homeowner on the other hand can purchase a home for $110,000 and pay a monthly mortgage of $1,000. With the tax savings of homeownership, after six years the homeowner’s payment will be lower than the monthly payment of a renter.

Other advantages to homeownership are that it builds stability, people are free to change décor and landscaping, and you do not have to depend on other people to maintain the property. The only advantages to renting as oppose to homeownership is that it is much easier to move and there is little or no responsibility when it comes to maintenance.

Before people make the decision of whether to rent or own a home, they should utilize their resources and find out which is better for them. Talking to a homeownership advisor or simply taking a financial literacy course can help you figure whether you should become a homeowner and if your finances will allow you too.

In the meantime, many people who have accomplished the dream of homeownership are celebrating, as June is national homeownership month. Homeowners can visit the HUD website to find local homeownership events in their area.

Foreclosure: Disadvantage or Advantage

2010-06-01T12:34:00.001-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

Unfortunately with the state of Maryland having one of the highest foreclosure rates, many residents this year will face foreclosure and wonder what the next step is. The first step in dealing with foreclosure is to completely understand the process, and know what advantages and disadvantages it may offer. The most significant thing to be conscious of is that foreclosure is not the end of the world.

Although being faced with foreclosure is never pleasant, people who face foreclosure today are in a much better position than people who have faced it in the past. Because of the increasing amount of foreclosures in many areas across the nation, the range of options and resources for those in such situations has significantly increased. From federal government to local government, as well as a variety of community organizations and non-profits who specialize in foreclosure prevention; there are numerous efforts and programs aimed at keeping struggling homeowners in their homes and out of foreclosure.

Today lenders are more willing to help homeowners through a difficult period than they were in the past. One of the most important things is to act fast as soon as you begin to struggle with your mortgage and thing you may be facing foreclosure. There are real options today in regard to foreclosure prevention and losing your home is not the only answer.

For those who feel that there is no other solution to their homeownership problems other than foreclosure, they need to understand that walking away from a mortgage that you still may be able to pay has consequences. One of the major cons to foreclosure is that your credit score will be affected and may be impossible to get credit for a while.

Many people who walk away from their mortgages have the misconception that they can simply raise their credit scores again by paying all of their bills on time and eventually finance another home purchase. Typically homeowners who face foreclosure due to economic hardship, such as a job loss or divorce, normally must wait two to five years before buying a home again. On the other hand, people who walk away may face double that time frame before they are able to purchase another home.

Facts show that the advantages to foreclosure are slim to none in comparison with the long list of disadvantages. It is in the best interest of anyone facing foreclosure to act immediately by seeking counseling or programs that deal with foreclosure prevention. Simply settling for foreclosure without a fight will have disadvantages at the moment and for the long haul.

Why Make the move to Baltimore?

2010-05-17T14:06:00.003-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

As children get out of school and many families begin to plan their summer vacations, many other families prepare for an even bigger adventure- moving to a new home. Summer is the most popular time for Americans to move. When the new summer season starts, many parents take advantage of their children’s summer break and use this as a time to relocate.

For families who are looking to move to a new area, Baltimore should be at the top of their lists. Baltimore offers a unique blend of historic charm, and its diverse communities are welcoming to people of all backgrounds and interests. In addition to being known for its ethnic neighborhoods, Baltimore has recently become known for its innovations in the preservation and restoration of urban homes.

Unlike many other coastal cities, the cost of housing in Baltimore has only risen modestly over the years. Other than saving money, Baltimore has a vast amount of recreational attractions that should make people want to move to this city. In addition to the Baltimore Zoo and being a devoted sports town, Baltimore is close to many other recreation outlets such as Six Flags America and Ocean City. Just a thirty-minute drive form Washington D.C, Baltimore residents have access to a multitude of free museums and the National Zoo.

Before making the decision to relocate to Baltimore, families should look into the many resources that Baltimore has available. To assist you in your research on the city of Baltimore, the Live Baltimore website offers a large amount of information with profiles of different Baltimore neighborhoods so that you can get an idea of which one is best for you.

Another important factor before relocation is the cost of living in the area and the job salary. Movers should compare the new cost and salary of living in a new city and make sure it coincides with their budgets. With free financial literacy courses at Neighborhood Housing Services of Baltimore, movers are sure to get a proper understanding of Baltimore living and how it relates to their budgets.

Maintain Financial Fitness When Vacationing

2010-05-07T15:15:00.002-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

As we move closer to the summer season, many Americans are considering family vacations. One of the main issues that arise when going on vacations is that we enjoy ourselves so much they we may become a little out of touch reality and overspend within our budget.

Another mistake people make is going on vacations that they cannot afford. Although it is a dream of many of us to go to extravagant places like Paris, London, or Milan; in order to stay within our budget it is important to find cost effective vacations. The first thing families should do is take a look at the household budget and then decide how much can be budgeted for a vacation.

While saving up funds for vacation, think about a destination. Ask yourself with this vacation be done by plane or by driving? When deciding on a vacation destination it is resourceful to look into information on off-season travel, promotions, and advanced ticket purchases. Other options like traveling mid-week as opposed to the weekend can save money and traveling with more people in order to split the costs.

As tourists areas tend to be very pricey when it comes to food and leisure, finding an all-inclusive vacation can save lots of money. Areas such as Mexico, Puerto Rico, and resorts in Jamaica offer all inclusive packages which include 3 meals per day at various restaurants, unlimited beverages, 24-hour complimentary snacks, transportation, leisure passes and free activities.

If you wish to go on a vacation that is not all-inclusive, it is important to create a budget for when you get to your vacation destination so that you do not overspend. With the help of Neighborhood Housing Services of Baltimore’s financial literacy classes, you can come up with a budget that is appropriate for your particular vacation.

Pre-purchase: What should you know before purchasing your home?

2010-05-03T14:46:00.004-04:00

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

Before purchasing a new home, you should take the time to do a lot of research on the specific homes you have in mind, as well as the neighborhoods they are in. One of the most important things to do before you buy a home is to research the history of the home. To find out who owned the home before you and check public records about the house, there are many research methods offered.

You may want to know architechtural facts such as the date of construction, name of architech or builder, construction materials, and physical changes over time. Historical facts such as information on the original owner and other residents through time, or interesting events associated with the building or area.

Before purchasing a home, it is crucial to look up crime reports and know what neighborhoods are safest. With today’s technology, you can simply put in an address and find out what type of crimes have occurred in a specific neighborhood and when the crimes took place. In addition to general crime in the area, you can also do a specific search for sex offenders in the area. Safety is one of the most important things when it comes to purchasing a home. One’s house should be a safe haven for them, and knowing the surroundings of your home is necessary. According to Julienne’s Tips For Buying Your First Home, you should observe the prospective house during all times of the day to get an idea of how the neighborhood is at all times.

Doing research on the neighborhood of the home you want to purchase can also enable you to use your resources once you are moved in. For your convenience, you should always know what resources your neighborhood has such as grocery stores, libraries, hardware stores, leisure, and hospitals etc.

Although you may not want to take time out to do extensive research before buying a home, you do not want to settle and then move in and realize you could have made a better choice. Rushing will not help the homeownership process, buyers should be patient and do all necessary research on prospective homes.

Resources for Job Seekers

2010-04-20T16:16:00.002-04:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

As we all know, unemployment rates are extremely high right now. In Baltimore City, the rate of unemployment was 11.7% when measured in January 2010. Yesterday, I participated in a highly-attended job fair put on by Congressman Elijah Cummings. The high turn out rate indicates not only that many people are currently looking for work, but that competition for jobs is likely to be high as well. If you are currently job hunting, give yourself an edge by dressing and acting in a professional manner, and maintaining an assertive and confident demeanor. And make sure to utilize the resources available to you in your job search.

Because of the available market, career coaches and other costly services are now abundant. Before utilizing services that charge a fee, take advantage of the free resources available to job seekers in the area. For instance, the Enoch Pratt Free Library has a Job and Career Information Center located in the Central branch of the library. Attending workshops, consulting directories of job openings, and having someone review your resume are just some of the free services available at the job center. Similarly, the Maryland Department of Labor, Licensing and Regulation has a One-Stop Job Search Center with three locations throughout the city. Another great resource is the Baltimore City Office of Employment Development.

One great way to build your resume during a period of unemployment is to volunteer. Through volunteering, you can gain useful experience and skills to give you an advantage when finding a job. Additionally, getting out in the community and being involved will give you a chance to network and make connections which is increasingly important in finding work. Check out the Business Volunteers Unlimited of Maryland to find volunteering opportunities that meet your interests.

April is Financial Literacy Month: Ease Into a More Complete Understanding of Your Finances

2010-04-07T08:37:00.003-04:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Money Management International has declared April Financial Literacy Month. Being financially literate simply means possessing an understanding of your personal finances. Fiscal matters are already intimidating to a great deal of people and with so many economic changes throughout the past few years things can be even more confusing. However, MMI emphasizes that financial literacy is a skill we can all maintain. The non-profit credit counseling agency challenges everyone to participate in their thirty steps towards a better understanding of finances.

The thirty-step process is intended to be completed in a month, one step each day. The first step on the path towards financial wellness is to be aware that financial stability is a process and a commitment. Further steps include simple actions such as goal setting, determining net worth, and taking a quiz to cater directly to your financial concerns and needs. In addition to the step-by-step course of action, MMI has compiled a list of tips and gadgets and a blog to ease the process. For additional assistance, check out the FDIC’s consumer tip of the week .

An important thing to remember on your path towards financial literacy is that you do not have to go at it alone. There are countless free resources available to individuals looking to improve their finances. At NHS of Baltimore we teach financial fitness principles and skills in our classes which are held in the evenings. Another great way to expand your financial knowledge is to attend our Financial Fitness Day on Saturday, April 17th from 8:30am – 1:30pm. The event will be held at Pleasant Hope Baptist Church ,located at 430 E Belvedere Avenue in Baltimore. Free workshops at the event include “Beautifying Your Home-Post Purchase Maintenance,” “Prevent Foreclosure!-Loan Modification Options,” and “Money 101- Financing Basics for College Students.” Call 410-327-1200 to register or for more information.

Lowering your Property Taxes

2010-04-05T08:47:00.003-04:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

Many homeowners feel they are paying more than their fair share of property taxes. Home values have pummeled by more than 30 percent, from their peaks, since the housing crisis started. Many believe their homes are over-assessed. According to the National Taxpayers Union,as many as 30% to 40% of residential homes and commercial properties are over-assessed. Only a small percentage (roughly 2% to 3%) of homeowners attempt to go through an appeals process. Research suggests homeowners are a little leery of an appeal based on the perceived complexity of filing for one. In actuality, homeowners who file an appeal enjoy a 20% to 40% success rate as it is a pretty straightforward process. Many people do not know the odds could be in their favor. A little investigation and patience can go a long way, and save you some money in the long run.

In preparation for your case, the first thing one should do is to look for errors in your assessment. Call your local assessor’s office to find out how your district levies taxes, on 100% of the market value or, in addition to some fractions of it. Although fractional assessments are less common, plenty of districts still use them for reference. Each jurisdiction has their own rules and guidelines pertaining to assessment appeals. Make sure you know all of the legalities involved before pursuing an appeal. When you go to the assessor’s office, ask to see the property card for your home. It will list all the details pertaining to your initial assessment. If you choose to file a case you are going to need hard evidence. Remember to check off on all itemized mistakes. This could include square footage or the number of bathrooms. If a written error has occurred, the assessor may be able to fix it immediately. If it is a computer error, the process to correct it may take a bit longer. Also, make sure to ask for the property cards of your immediate neighbors (this is public record) who own similar homes. Crosscheck your assessment with theirs. Most times if there is a 10% or more margin of error you can prepare a good case based on uniformity. It is the assessor’s responsibility to maintain equity amongst owners in the same neighborhoods.

If you need more information and forms to organize your appeal, go to the American Homeowner’s Association, for assistance. This website is full of helpful tips and information.

New Regulations on Overdraft Fees: Should You “Opt-In”?

2010-03-30T14:03:00.003-04:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

New regulations that banks must abide by are abundant these days. Not too long ago, certain information was made available to consumers about how long it would take them to pay off a credit card if they only paid the minimum. Now the Federal Reserve has put forth a set of rules governing overdrafts on debit cards. Expect your bank to begin making changes in the coming months as financial institutions must comply with the Federal Reserve’s guidelines by July 1, 2010. Bank of America has already decided to get rid of overdraft fees on debit cards by simply not allowing the purchase to go through if there is not enough money in your account.

Getting rid of overdraft charges seems like a good thing. No longer will we have to worry about accidentally spending thirty-something dollars on a soda or coffee. However, banks may begin shifting fees around in order to make up for the money lost in charging customers for overspending their accounts. Last year, banks made $20 billion in overdraft charges alone, so from a business standpoint they are likely to find other places to make that money back. For instance, we may begin to see a decrease in services such as free checking.

As per the Federal Reserve’s new mandates, banks must give customers the choice to “opt-in” to overdraft fees. This means that individuals must give consent in order to be charged a fee for overdrafting an account. An article in The New York Times suggests that it may be best to pass up overdraft protection as you could end up paying a lot of money in the end. When given the choice between expensive fees and a denied transaction, one would think very few people will opt-in to these fees. But some financial institutions speculate that consumers would rather be charged big bucks for something small like coffee than face the embarrassment of a declined transaction. This claim may not hold true during today’s tough economic times. However, it may be nice to have overdrafting (with fees) as an option if you have an emergency and do not have a credit card.

Keep in mind the other things you can do instead of opting-in to overdraft fees. One cheaper alternative that some banks offer is to arrange for money to come out of a savings account or credit card if you overspend on your checking account. And it is always a good idea to keep track of your funds by setting up internet or mobile banking and balancing your account.

Remain Aware of Baltimore City Homeownership Incentive Programs

2010-03-24T11:22:00.021-04:00

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 .

Filling the Nutritional Gaps in Baltimore Neighborhoods

2010-03-22T10:49:00.008-04:00

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

Making homes healthier to live in, NHS incorporates Green Rehab Specifications

2010-03-18T11:26:00.004-04:00

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.

The Importance of Knowing Your Credit

2010-03-17T14:40:00.010-04:00

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.

Take 10 Minutes to Complete the 2010 Census

2010-03-12T09:01:00.004-05:00

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.

New Home Buyers: What do you need to know?

2010-03-10T15:44:00.005-05:00

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.

Mandatory Mediation Law Introduced to Maryland Legislature

2010-02-25T09:37:00.005-05:00

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.

Dealing With Damage to Your Home After a Snow Storm

2010-02-17T09:46:00.004-05:00

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.

The Crisis has Halted, But the Road To Recovery is Long

2010-02-16T14:48:00.002-05:00

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.

Federal Government to Ease Its Involvement in Real Estate

2010-02-04T13:42:00.003-05:00

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.

Give to Haiti But Be Aware of Scams

2010-01-22T09:47:00.004-05:00

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?

2010-01-21T09:03:00.002-05:00

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

2010-01-15T09:46:00.005-05:00

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

2010-01-14T15:24:00.005-05:00

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

2010-01-08T11:24:00.003-05:00

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

2009-12-29T11:29:00.005-05:00

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

2009-12-21T12:12:00.002-05:00

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

2009-12-18T14:43:00.000-05:00

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

2009-12-11T09:00:00.000-05:00

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

2009-12-10T09:24:00.002-05:00

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.

Banks Tighten Fists on Personal Lending: loans still hard to get

2009-12-08T08:55:00.003-05:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

The current economic climate has everyone wary of financial loans. Risky lending practices that enhanced the mortgage crisis have hurt lenders, borrowers, and the economy as a whole. Consequently, many lenders are changing their loan policies, especially concerning unsecured personal loans to individuals with a poor credit rating. An unsecured, or signature loan as it is also known, is one that is not backed by collateral. Often this means higher interest rates as well.

One financial institution that has changed their lending policies in the wake of today’s economy is Bank of America. As of October 31, 2009 Bank of America is no longer offering personal loans. Other large banks such as Wells Fargo and CitiBank continue to offer personal loans, however Subprime Blogger anticipates that other banks may follow in the footsteps of Bank of America. Other places to look for loans are smaller regional banks and credit unions.

As Bank of America has shown, many lenders are less willing to lend money to individuals with bad credit. Minimum credit score limits to get a loan have been on the rise and a lower credit score will likely mean higher interest rates on any loan. Thus it is increasingly important to keep your credit and other financials in shape. One way to improve your credit is to make small purchases using a credit card and pay them back right away.

Research other ways to raise your credit score and consider consolidating your debt to lower interest rates. NHS of Baltimore offers financial fitness classes free of charge, which discuss the importance of building your financial stability and offer advice on how to do so. And as always, NHS of Baltimore's counselors are available to answer any of your questions.

BGE Customers to Receive $100 Credit in February

2009-12-03T08:54:00.006-05:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

Chilling winds, freezing rain, single digit temperatures- we are all familiar with they place on our heating bills during the winter months. Families struggle every year to find a way to lower their consistently higher utility costs, which most commonly peak in the month of February. Baltimore Gas and Electric (BGE) has decided to deliver a post-holiday gift to their customers- a $100 credit on their February bills!

You may ask, too good to be true? It turns out this credit is part of several conditions imposed by the State of Maryland and energy regulators. BGE’s parent company, Constellation Energy Group has recently been approved for a joint merger with Electricite de France (EDF), which closed its doors last month. After a status hearing earlier this week with the Maryland Public Service Commission, BGE mapped out all of their precautionary measures to protect their business in case the parent company runs into financial troubles. All residential customers as well as customers who have switched to another supplier are eligible for the credit. This credit is in response to increasingly higher bills paid by so many Marylanders.

Under the new long-term contracts, customers should be seeing a decrease in their bills in the coming months; as natural gas and electricity prices are dropping globally. BGE gas bills are expected to decrease by as much as 25% this winter. Electric bills should drop by as much as 15% by 2012 and the decline is expected to continue. Constellation’s merger with EDF will create a pool of $36 million for Constellation’s foundation, to help pay for the creation of a visitor’s center, and the EDF’s relocation to Maryland. The long-term fate of the various new projects from this merger is dependent upon the federal loan guarantee from the U.S. Department of Energy (DOE). This will be decided next year.

Credit Repair Scams are on the Rise

2009-11-25T09:00:00.000-05:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

As the economic recession continues, more people are looking into better options to reduce their expenses, and repair their credit. Unknowingly, consumers are becoming victims of several scams plaguing our city. Two of the most popular include: Credit repair and Bankruptcy advice programs. The number of illegal companies promising help with these issues is on the rise. Their main advertisement tools are signs posted on utility poles, lawns, and vacant houses; perhaps to target people in deteriorating neighborhoods.

An attorney for The Community Law Center (CLC) pulled an ad from a pole showing how prevalent these scams are around the city. An intern at his office researched the phone number and company listed on the ad. It was traced to a real-estate agent with major credit problems. When phone inquiries were made, all they ever got was a voicemail message. Apparently, the resident agent listed was the head agent’s sister; with legal problems of her own. He swore she had nothing to do with the company. Ironically, when questioned about his staff, he stated he had two partners and a silent partner. He only volunteered to identify the two partners by last name.

It is illegal nationwide for any non-lawyer to give legal advice and/or handle money client under the guise of legal council; up-front fees for credit repair is also illegal. Although they can charge fees for preparing petitions, this fee can only amount to the equivalent of the cost of a typist. The real-estate agent talked about above claims he provides his services as a way to serve the community. He agreed to meet a representative from CLC, but subsequently changed his mind and offered a follow-up call instead.

When looking for any credit repair or debt management program, please make sure you research the company thoroughly before you decide to commit to services. Scammers are on the rise. Don't be a victim.

Make Saving a Priority During the Holidays

2009-11-23T09:00:00.001-05:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

These days most people are feeling the pinch of the ongoing economic crisis. Debt from buying a home, going to school, or major credit card purchases are quite commonplace in America. In fact, our “debt economy” actually encourages people to borrow money and live in debt.

But all this debt can be even more intimidating when savings accounts dwindle, which is what is happening among the majority of Americans. A recent study documented on National Public Radio(NPR) found a large percentage of Americans are unable to come up with extra funds in case of emergencies, even if they were to ask relatives for help. In the challenging economic climate that we are living in today, saving money can be one of the most difficult but also one of the most important things we can do.

It is frustrating to think about putting away money into a savings account when many of us are just struggling to get by. Yet, problems such as car troubles or an unexpected sickness can cause serious financial issues, especially with no extra money to fall back on. Start out small and try to save a few dollars each week. Maybe sacrifice eating out or buying a coffee. Try walking to the store or work instead of driving.

The Baltimore Sun’s Consuming Interests blog is a good resource that gives the lowdown financial deals. A recent post noted hidden ways (http://weblogs.baltimoresun.com/business/consuminginterests/blog/2009/11/top_10_hidden_deals_10spot.html) to save money in Baltimore. For more information on ways to save here are 100 tips to saving. Check out The Simple Dollar for even more tips on how to stretch your budget and save money.

While saving money strategies can really be beneficial, don’t buy something just because it is on sale. Get the deals you need but don’t make purchaces that you really don’t need simply because you can get a deal. And be careful on Black Friday! Make a budget, include money for savings, and stick to it.

New Federal Incentives for Home Rehabs

2009-11-19T09:00:00.002-05:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

The sheer number of available renovation-ready rowhomes is skyrocketing in Baltimore. This is in response to the growing number of foreclosures, bank-owned and distressed properties. The government offers a loan program, with an excellent interest rate, for people interested in investing in a large home renovation project. It is called the Federal Housing Administration’s (FHA) Section 203(k) program. Homebuyers are only required to contribute a 3.5% down payment.

The added incentive is a single mortgage is combined with renovation costs. This simplification process is attractive to first-time homebuyers, as well as investors. In the wake of the recession, it is easier to purchase a rehab home at a cheaper rate, then to purchase a brand new and/or custom-built home. Many could not afford to purchase a home if it was not for this program, and the $8,000 tax credit.

Realtors are providing their clients with all the information they can about the program. They are trying to get them pre-qualified as there is a rise in short-sell properties. A number of short-sells require moderate to major repairs. Most of the time, the sellers are unwilling to invest money in the repairs. With the deteriorating condition of vacant homes on the rise in Baltimore, the 203(k) program is getting a lot more attention.

Another similar program is the 203(k) streamlined program. This allows the borrower to add up to $35,000 in renovation costs to their current mortgages. The standard program does not have a loan amount limit. The general requirement for both programs is the overseeing of all the renovation work by a HUD-approved consultant. They are responsible for giving you an estimated cost of repairs needed. Health and safety issues are also their highest priority. Make sure you pick a reputable home contractor for your repairs, to maximize your expenditures.

As Anne Frank Once Put it, "No One Has Ever Become Poor By Giving"

2009-11-18T09:35:00.005-05:00

By: Jessica Schmidt-Bonifant, Philanthropy Manager, NHS of Baltimore

“Think of giving not as a duty but as a privilege." That's how John Rockefeller viewed giving, and it certainty rings true in these challenging times. Many of us have felt the effects of the economy first hand whether our paychecks have been reduced, our investments depleted, or our home values decreased. We all have less and less disposable income to take care of the many needs piling up on our plates- especially this time of year when we have gifts to buy, food to make and traveling to do, on top of the appeal letters that arrive at our doorsteps. It is easy just to add the letter to the stack of recycling in the corner and think “Not this year, there is just too much”.

It is easy just to shove off the request and move on with our day, but as Mr. Rockefeller said giving is a privilege. Not everyone has the ability or capacity to make a donation, but if you do think about how lucky you are. You have the unique opportunity to make a difference; you have the chance to change someone’s life by making a contribution no matter how big or small. Obviously we aren’t all the Rockefellers, we can’t make million dollar pledges for organizations to build new offices or start new clinics, but our gifts still matter and that is important to remember.

Nonprofits cannot run on the desire to help people alone. We have all the right pieces, we have the dedicated staff, and we have the desire to work to change lives, but at the end of the day we need to keep the lights on, we need to call our clients and that is where your contribution matters. Whether you give directly to a program or to an annual fund your gift matters it lets us do our job and it lets us help those in need.

So in these challenging times take a moment to remember that if you are able to make a contribution you are lucky, you can change people’s lives for the better and at the end of the day what better gift is there then that. Click here to donate.

Don't Wait to Get Foreclosure Help

2009-11-17T11:17:00.003-05:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

If you are falling behind on your mortgage payments, or anticipate that you will, consider discussing a loan modification with your lender or at least getting advice from a HUD certified counselor. Taking this route is much easier than waiting until it’s too late. Unfortunately, in America, some people equate foreclosure with personal failure and thus are ashamed of getting help.

Recently, I spoke with a Realtor who interacts with homeowners and potential homeowners, who felt the reason that homeowners often wait until its too late is an issue of pride. Yet we are in a time where the mortgage and foreclosure crisis is widespread and affecting so many people. Moreover, many experts anticipate that the rate of foreclosure is only going to get worse in the coming months.

NHS of Baltimore gets a staggering number of calls from individuals who have waited until the last minute to ask for help. Our Program Assistants receive phone calls from people nearly every day who are facing foreclosure and already have a sale date for their homes. Yet, if you have received a notice of foreclosure by certified mail, our HUD approved counselors still may be able to help you. In the state of Maryland, lenders are now required by law to afford homeowners 90 days from the official notice of foreclosure to rectify their mortgage before the sale takes place. However, once you have received a sale date for your home, it is less likely our counselors can help you. Rather, in this situation, a lawyer would be the preferred person to contact.

NHS of Baltimore refers people who need legal aid to the Maryland Volunteer Lawyer Services (MVLS). They can be reached at 410-547-6537. Another resource to check out is the Legal Grind where you can get legal advice for a small donation. Whether you are in a position where you need legal aid or just starting to fall behind on mortgage payments, do not be ashamed or scared to ask for help. For more resources on foreclosure prevention, check out the Baltimore Homeownership Preservation Coalition (BHPC) or the Maryland Hope Initiative.

Current and Future Homeowners Question the Homebuyer Tax Credit Extension

2009-11-12T14:09:00.004-05:00

By: Salina Green, Outreach Coordinator, NHS of Baltimore

As soon as Congress decided to expand the $8,000 tax credit for first-time homebuyer (until April 30th, 2010), many people began questioning their eligibility. Current homeowners are seeking answers concerning the new tax credit law passed last week, which will put more money into their pockets. This new legislation allows current homeowners to take advantage of a tax credit up to $6,500 if they purchase a new home. All sales must be completed and closed out by June 30, 2010. Both the first-time and current homeowners’ tax credits come with strict stipulations that must be followed.

The new rules in place come after the IRS paid out an enormous sum of money because of fraudulent claims. Thousands of ineligible people received funds. Under the new law, a buyer must prove they purchased a home and provide prove of age; 18 is the minimum. Some of the new restrictions are as follows:

Anyone who purchases a home for more than $800,000 will not qualify for either tax credit.

To be eligible for full credit after November 6th, your income must fall below $125,000 for single filers and $225,000 for joint filers.The credit decreases in value for people making more than those amounts, phasing out completely after $145,000 for singles and $245,000 for couples.

Settlement statements must be attached to your tax returns as proof of purchase.

These are just some of the benefits established by the new legislation. It was created to allow people more time to gather the revenue necessary to purchase their first homes. Recent retirees can also benefit by downsizing to a cheaper home and still obtain a nice tax credit. There are special concessions in place for military member at home and abroad, who desire to participate in the programs.

American Casino Hits Theaters in Baltimore Nov. 12th: film explores the collapse of the mortgage industry

2009-11-10T15:50:00.005-05:00

American Casino, a documentary about the collapse of the mortgage industry will be playing at the Senator Theater (5904 York RD. Baltimore, MD. 21212) from November 12, 2009- November 19,2009. Shot partly in Baltimore, several Baltimoreans were interviewed in this film that takes an in-depth look at the mortgage meltdown.

Click here to view the trailer.

U.S. Senate Ramps Up Effort to Stop Mortgage Fraud

2009-11-09T15:56:00.001-05:00

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

Senator Barbara Mikulski of Maryland’s office announced last week that the Senate successfully passed the Fiscal Year 2010 Commerce, Justice, Science and Related Agencies (CJS) Appropriations Bill, which allots $437 million to the Justice Department to track down and prosecute perpetrators of mortgage and financial fraud.

“It’s time to foreclose on the bad guys and stop the foreclosures on homes,” Senator Mikulski said. “I like most Americans, am outraged by the predatory practices, deceptive marketing and lending schemes that have swept across the country, especially in Maryland.”

According to Mikulski’s office, Maryland saw a vast rise in mortgage scams in 2008, totaling more than 60,000. The new money apportioned by the Senate to combat such scams will allow the Federal Bureau of Investigation (FBI) to hire 50 new agents and 60 new accountants who are dedicated to identifying scammers and bring them to justice.

If you are a homeowner and you are delinquent on your mortgage or facing foreclosure, beware of anyone who promises to secure a loan modification for you, especially if they ask for money up front. In Maryland it is illegal for anyone to charge a fee up front for a loan modification, but more importantly, there are a plethora of local non-profits who will help you for FREE. While there is no guarantee that your home can be saved, NHS of Baltimore’s housing counselors say they have secured positive outcomes for our clients more often than not.

Avoiding the Flu This Season: home is the first line of defense

2009-11-06T14:29:00.003-05:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

There are countless precautions you can take to stay healthy this flu season, starting in your own home. Surrounding yourself with a healthy environment can mean better health. Everyone knows the importance of washing your hands thoroughly but think about how many things your hands touch each day in your house. Disinfect your home to keep your family healthy this flu season. While sanitizing your home is not a guaranteed safeguard against getting sick, it can help. Click here to read about simple cleaning tips to make your home a healthier place to be.

Don’t forget to treat your body well too. There is no need to go out and buy expensive vitamins or remedies. Eating Vitamin C rich foods such as oranges and drinking tea with antioxidants are affordable ways to improve your immune system. Don’t feel pressured to buy a product just because it guarantees immunity. Read CNN’s H1N1 flu-to-do (and don’t do) list for more tips on staying healthy. You may be surprised that there are a lot of ways that we put ourselves at risk for the flu without even realizing it.

The key to protecting yourself from illness is not to worry to much or too little. Educate yourself on signs, symptoms, and remedies for sickness. For instance, there are simple ways to tell if you are coming down with the flu or just a cold.

For more information on how to keep yourself and your family healthy this flu season, check out the Educational Fitness Solution’s free webinar on November 11, 2009 from 9:00am to 10:00am est.

Holiday Budgeting: Get a Gift for Everyone on Your List Without Breaking the Bank

2009-11-03T11:21:00.002-05:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

The Holiday season is soon upon us. Many of us are trying to figure out ways to spend less money and cut corners wherever we can. The first thought would be to buy fewer gifts. However, with a little creativity, you may still be able to shop for everyone on your list. Gift exchange is a viable option. The first line of business is to see if everyone in your group agrees to purchase one gift instead of multiple ones for the entire group.

Secondly, a price point should be set to avoid overspending and gift favoritism. Choose some sort of theme. This can easily turn into a party if you decide to explore this route. Make it fun. See if you can make a game out of the exchange; or even establish a stipulation of homemade-only as a way to challenge the gift-givers. Suggesting a little creative competition, helps everyone involved feel like they are a part of the giving experience. Everyone likes to see a happy face upon receiving an extraordinary gift.

We have all been victims of the “throw the name in the hat” choosing game. To avoid the unwanted, generic gifts such as fragrant soaps, candles, socks, etc, be sure to place some gift preferences and other pertinent information on your name card. And finally, suggest using a coordination system online to create wish lists for your group. This can cut out the paper trail and make sure everyone is organized and e-mails are received. Here are some site suggestions if you choose to go this route: www.elfster.com, www.secretsanta.com.

Remember, no one should have to go into debt over the holidays. There are plenty of ways to show you care other than tangible gift-giving. Help a neighbor out, offer your services to people in need of assistance. These are the gifts that keep on giving year-around.

Your Money Bus is Coming to Baltimore

2009-11-02T11:57:00.004-05:00

"Your Money Bus" travels all across the county offering free financial advice to people of all ages, with the intention of helping to educate consumers on the need to reduce personal debt while increasing savings. The events "Your Money Bus" hosts are held in conjunction with city and civic organizations to reach out to consumers who have questions about their personal financial well-being. By partnering with agencies in the cities they visit, they are able to offer consumers access to some of the best resources the city has to offer for financial fitness education and counseling.

The "Your Money Bus" will be at 3 locations around the Baltimore area starting Wednesday Nov. 4, 2009 and ending Friday Nov. 6, 2009. NHS of Baltimore will have HUD certified counselors available to provide advice at the Thursday and Friday events.

Nov. 4th
6:30pm to 8:00pm - "Recession Relief" Town Hall Meeting at the Conference Center at Sheppard Pratt Auditorium (6501 North Charles Street, Towson MD 21204)

Nov. 5th
9:00am - Press Conference in the Baltimore City Hall Rotunda.
10:00am to 4:30pm - Free financial advice event at Baltimore City Hall (100 N. Holliday Street, Baltimore, MD 21202). Bring your financial questions and get them answered by a financial advisor.
12:30pm to 1:30 pm - Live Baltimore will host a free class titled, "Preparing For Home Ownership." The class will teach the basics of purchasing a home and how to qualify for a mortgage. If interested in attending this class, please click HERE to register.

Nov. 6th
11:00am to 1:00pm - Free financial advice event at the Hunt Valley Towne Centre (118 Shawan Road, Hunt Valley MD 21030

For more information on all three events, click here.

Tax Credit for First Time Homebuyers May Be Extended

2009-11-02T10:50:00.002-05:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

The $8000 tax credit for first-time homebuyers is currently set to expire on November 30, 2009. However, Congress is considering extending that deadline until April 2010. Along with other government programs, such as Cash for Clunkers, the housing tax credit may have contributed to a recent 3.5% boost in the United States economy. More Americans have been purchasing homes due to the cash incentive. Unfortunately, some people been defrauding the tax credit program and using it in ways that were not intended; a couple hundred individuals under eighteen years of age, including a four-year-old, were able to receive the money in their names.

If the credit is to be extended, additional conditions and developments will be added to regulate and revise the distribution of funds. More documentation will be required on behalf of applicants in an effort to reduce abuse of the program. In addition to a time extension, the revisions of the tax credit would also make more individuals eligible to receive the money. Under the current program, yearly income for eligibility is capped at $75,000 for individuals and $150,000 for couples. The proposed revision would increase those numbers to $125,000 and $250,000, respectively. Considerations are also underway to extend the tax credit beyond just first-time homebuyers. Current homeowners looking to move may be able to receive up to $6,500 if they meet the monetary requirements and have resided in their current homes for at least five years.

Unsurprisingly, the issue of extending the homeowners’ tax credit has aroused several debates. Still, if the credit does not end up being extended, there are other sources to look towards for housing and down payment cost assistance. In Maryland, plenty of programs are in place to assist potential homeowners financially. Keep in mind that in order to be eligible for many of these grants, a certificate documenting homebuyer education is required. NHS of Baltimore offers homebuyer education classes, as well as one-on-one sessions with a housing counselor.

Furnace Replacement Program Will Help Low Income Families With Energy Efficiency

2009-10-29T13:10:00.005-04:00

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

The Baltimore Community Foundation (BCF) announced last week that it will launch the Baltimore Gas and Electric (BGE) Heating System Fund beginning in November, which will provide newer, more energy efficient furnaces to low income families in Baltimore.Income eligibility will be determined by the requirements set by the Maryland Weatherization Assistance Program. BGE contributed $1 million to start the program in collaboration with BCF and hopes it will teach families "how to use their resources efficiently and significantly curb energy-wasting habits".

Making "green" options available to low income families and individuals is becoming increasingly important. According to research conducted by NHS of Baltimore, 56% of neighborhoods with median incomes at or below $30,000 have homes that were built prior to 1950. Older appliances are already less energy efficient but as they age, they become even less efficient, creating greater costs for the homeowner. Although switching to these new appliance saves the homeowner money in the long run, the up-front cost can be quite extensive, which many lower income families cannot afford.

Programs like BCF's furnace replacement program provide the opportunity these families to to make the change to more efficient household appliances. If you are interested in applying for the program, contact the Baltimore Housing Weatherization Program by calling 311 or 443-984-1066 weekdays between 8:30 am - 4:30 pm, or visit www.baltimorehousing.org. To read more details on the program, click here. Don't forget, the program begins in November.

New Initiative in Maryland Seeks to Stop More Foreclosures

2009-10-28T10:02:00.003-04:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

There is some uplifting news during the current foreclosure crisis- Governor, Martin O’Malley’s administration is working on a new game plan that encourages mediation between homeowners facing foreclosure and their lenders. Assigning mandatory, independent mediators to oversee each foreclosure case will ensure fair negotiations between the lender and the homeowner. A number of states have already implemented this program with promising results. If the program passes in the state legislature, it will hopefully sway homeowners to seek additional help when they are faced with a foreclosure. Many do not seem to know about all the help available to them right in their backyards.

Foreclosures continue to rise in Maryland at a rate that far outpaces the national average. According to RealtyTrac, there is one foreclosure filing per every 157 households in Maryland; a rate that has jumped by 85.6% since this time last year. Market stabilization continues to be difficult and encouraging lenders to work with more homeowners to modify their loans is key. The greater concern is who would pick up the costs associated with hiring and retaining mediators from reputable organizations, for potentially large case loads. This is where the new grants come in. Enforcing stricter programs and laws that push lenders to explore a loan modification and prevent a foreclosure is the goal of the new federal initiatives.

NHS of Baltimore Welcomes Pat Hull Back to the Team as Education Manager

2009-10-26T15:07:00.003-04:00

We would like to extend a warm hand to Patricia Hull as she returns to NHS of Baltimore. Her passion and dedication to preserving homeownership through counseling and education is a valuable asset to the organization.

How Residents Can Fight Foreclosures in Their Neighborhoods

2009-10-26T09:00:00.001-04:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

I recently attended the NeighborWorks Community Leadership Institute (CLI) in Milwaukee, Wisconsin. The CLI brought together neighborhood residents and community leaders from all over the United States. The underlying theme was: “together, we can rebuild, renew, and sustain”. In other words, everyone can play a part in making their neighborhood a better place to live both now and in the future.

One of the workshops I attended during the weekend was entitled “Engaging Our Communities to Deal with Foreclosures”. The class did not focus so much on foreclosure prevention or loss mitigation, but rather what neighborhoods can do in the face of foreclosures that have already happened. While foreclosure prevention is extremely important, sometimes foreclosure is inevitable- and entire neighborhoods are affected.

In neighborhoods that are hard hit with foreclosures, property conditions and values decrease. These areas may be targeted with loss mitigation scams, social cohesion between neighbors can weaken, and residents’ confidence levels may erode. This list is not all-encompassing, as foreclosure can affect neighborhoods in numerous ways. By thinking about the impacts listed above, one begins to see how widespread the effects of foreclosure can be. Read more about the community impacts on Stable Communities.org.

Residents can play a key role in improving neighborhoods that have experienced foreclosure. Further, neighbors who combat the effects of foreclosure are also playing a part in preventing further foreclosure from happening. Educating others in your neighborhood about the foreclosure problem, organizing a neighborhood clean up, and marketing the neighborhood’s for sale properties are all roles that residents can be a part of. Check out more ways to get involved in foreclosure response at Foreclosure Response.org. Policy Link also has a great toolkit with resources on “Reclaiming Foreclosed Properties for Community Benefit”. Don’t be afraid to start small- try picking up a few pieces of trash on the street or introducing yourself to neighbors.

NeighborWorks Launches National "Loan Modification Scam Alert" Campaign

2009-10-23T13:28:00.005-04:00

On Monday, Oct. 26, at 12:00 noon eastern, NeighborWorks America will kick off its nationwide "Loan Modification Scam Alert" campaign with a live webcast. The campaign is designed to alert and empower homeowners to protect themselves against loan modification scams. The webcast will be hosted from City Hall in Las Angeles, California, a state particularly hard hit by loan modification scams. As part of the launch, the partnership will also designate November as "National Loan Modification Scam Awareness Month". To register for the live webcast, click here. To visit the campaign website, click here.

A note from Ken Wade, CEO, NeighborWorks America

Colleagues and friends- as you know, a new wave of scam activity is sweeping the nation - loan modification scams. In response to this crisis, NeighborWorks® America is launching a national public education campaign designed to alert and empower homeowners to protect themselves against loan modification scams, find trusted help and report illegal activity to authorities.

Our campaign cannot succeed without your support and participation. In the months ahead, our combined efforts on behalf of the "Loan Modification Scam Alert" campaign will alert millions of distressed homeowners to know the signs, get the facts and report scam artists in their communities.

Please join us for a live Webcast of the campaign's kick-off event at the Los Angeles City Hall at 12:00 noon – Eastern Standard Time – Monday, October 26. Invite staff, local partners and friends to watch the event too.

And be sure to check out our campaign website, beginning Oct. 26. There, you'll find more information about the campaign and downloadable, customizable materials to alert homeowners in your community.

Knowledge...along with your participation...is our best defense.

Sincerely,

Kenneth D. Wade

Budgeting a Healthy Eating Routine for Your Family

2009-10-21T13:15:00.001-04:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

During this difficult recession, consumers are trying to find ways to cut their food budgets to a manageable level. Doing so does not mean people need to sacrifice buying healthy, organic and local foods. Learning to budget for healthy meals is key to maintaining and supporting your family’s health and might actually help you save money. NHS of Baltimore’s homeownership and financial advisers will tell you that when you’re on a strict budget, one of the first things you should cut are your eating out expenses. Ordering out for dinner more than once a week can really add up financially and take a toll on your health wise.

One tip for stretching the dollar is to buy from the local farmer’s markets, as food is generally cheaper here than in the supermarkets. As the season’s change, using coupons and practicing careful spending are important in purchasing your family’s groceries. Many stores are trying to be more accommodating to help out cash-strapped customers.

For those who cannot afford a completely organic diet, a cheaper alternative are products labeled “hormone-free” or “rBST-free”. Avoiding hormones is better than nothing at all. To better understand how produce is labeled and numbered, here is the meaning of the numerical system associated with food stickers:

A label with a 5-digit number beginning with a 9 is organic produce (i.e. – 95736).
A label with a 5-digit number beginning with an 8 is genetically engineered produce (i.e.- 84621)
A label with a 4-digit code is conventionally produced. Usually, this number begins with a 4 or 3. (i.e. - 4310 or 3911). Produce from this category are grown with synthetic fungicides, herbicides, fertilizers, and other harmful additives.

The website, www.foodnews.org/methodology.php describes the top lists of the most contaminated and least contaminated foods we consume in bulk. It also offers a guide to decrease exposure to harmful food chemicals.

Federal and State Governments Offer Incentives to Upgrade Your Old Household Appliances

2009-10-20T11:02:00.004-04:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

The federal government is providing over $300 million in stimulus money to reward homeowners who purchases energy-efficient appliances for their home. The State of Maryland is receiving over $3.5 million. It is up to each state to designate which appliances qualify for the new plan. This stimulus package was created to give a boost to the ailing retail market and the environment. Many utility companies are already offering rebate programs for appliances that utilize less water and energy than older standard models.

The stimulus is just another stepping stone to boost our economy. The federal government also offers tax incentives for other energy-efficient installments in homes. Items such as new windows and insulation qualify for this program. Maryland offers some matching incentives as well.

Recycling old appliances is an option for consumers who do not want to just throw them out. Steel is the main recyclable component of older model kitchen appliances. This not only helps the environment, it saves homeowner’s money on their utility bills each month. Some people have saved over $40 a month in costs. BGE will come to your home, pick up your refrigerator or freezer and pay you $50 each as an incentive to recycle and replace them. Not bad huh?

Newborn Holistic Ministries Restores Fountain in Upton Park as Last Puzzle Piece for Intersection Revival

2009-10-19T11:02:00.010-04:00

By: Todd Marcus, President, Newborn Holistic Ministries, Inc. (Mr. Marcus is a first time guest blogger. His organization's story about the restoration of the water fountain in Upton park and their overall success in revitalizing the entire intersection, is testament to what can be achieved through tenacity and hard work. Residents, no matter your struggle, you should know you are not alone. Baltimore offers so many non-profits waiting to help you.)

As a community based nonprofit, Newborn Holistic Ministries was founded in 1996 by life-long community resident, Elder C.W. Harris. We have always been focused on meeting the material, social, and spiritual needs of our community. These needs have been intense as our communities struggle with severe poverty related issues such as drugs, unemployment, poor schools and lack of resources.

When we acquired our first building at our intersection (1928 Pennsylvania Avenue), three of the four corners had abandoned and dilapidated buildings and were dominated by open-air drug dealing. The fourth corner had a brick-top park whose main feature, a large water fountain, had been off for nearly 20 years. Furthermore, these buildings were all surrounded by vacant lots - the result of buildings demolished by the city without a redevelopment plan.

When we began renovation of 1928 Pennsylvania Avenue, our founder, Elder Harris hoped to turn it into a center for arts but changed course at a community meeting when a resident spoke about a lack of recovery programs for women and asked for help. From that experience a new vision was born and in 2000, after completing renovation, we dedicated that building as Martha’s Place, a six-month transitional program for women overcoming drug addiction and homelessness.

Since then, our small nonprofit has continued to rebuild the intersection. With funding support from individual donors, foundations, and city grants, our small staff has been able to operate Martha’s Place, which has seen over 100 women leave our program clean and sober with a job and housing. At the same time, we’ve also been able to acquire and renovate four rowhomes on the northeast corner of our intersection to provide long-term housing for graduates of the Martha’s Place six-month program. We’ve taken the seven vacant lots (8,500 sq/ft) surrounding our buildings and transformed them into beautiful community green spaces with meditative gardens, murals, flowers, and fountains. And this November we will complete the renovation of a commercial building on our southeastern corner at 1947 Pennsylvania Avenue which will feature arts classes in ceramics, visual arts, dance, and writing through our new Jubilee Arts program.

Throughout all this work however, the abandoned fountain at our northwestern corner remained dormant. Over the past year we worked to slowly push closer to our goal of reviving this corner. Beginning with strategic guidance from our partners at the TKF Foundation and Tim Almaguer at Friends of Patterson Park, (which successfully restored the fountain in Patterson Park) we worked to identify ways to get the fountain turned back on. Next steps involved regular contact with our city councilman Bill Cole, who worked diligently on our behalf to coordinate city agencies to help restore our corner fountain. Finally, with great help from Vernon Smith in Baltimore City’s Department of General Services, crews began to repair the fountain and this September the fountain shot to life for the first time in over 20 years. Though some kinks in the fountain’s operation are still being ironed out, we are celebrating this restoration and the beauty and symbolic resurgence it gives our community.

I was recently told there is a strategy stating that if all four corners of an intersection in a struggling area can be reclaimed, they will anchor the area and lead to long-term redevelopment. With the dedication of our final building at 1947 Pennsylvania Avenue scheduled next month on November 14th, at 11:00am, we will have completely revived our entire intersection to address the needs in our community and make it an area of beauty and hope. We still face tremendous work to do in order to achieve the full revival of our community but our work thus far is proof that it can and must be done.

To learn more about our work or to become involved, please email: newborntm@hotmail.com

New Report Shows Minorities Denied Mortgage Credit 3 Times More Often Than Whites

2009-10-15T14:44:00.004-04:00

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

Call it is a symptom of the current housing and economic crisis; the credit market has tightened for everyone across the board. Business owners have found it more difficult to get lines of credit for their pay rolls, just as consumers are facing stricter requirements for credit scores and collateral; even more disturbing is that the retraction of credit is hurting minorties at a greater rate. A press release out by the Federal Financial Institutions Examination Council (FFIEC) reveals that mortgage credit has tightened almost 3 times more for minorities than it has for whites. According to the data, African Americans were denied conventional mortgages 36.1% of the time in 2008, compared to Hispanics at 31.1% and whites at 13.6%.

Additionally, the market share of minority homeowners shrank drastically in 2008, with African Americans seeing a decline from 8.7% to 6.3% and Hispanics from 12.1% to 8.5%, while the market share for white homeowners actually increased from 62.7% to 69.1%.

NHS of Baltimore's own numbers explain the decrease in homeownership among minorities as being largely connected to the collapse of the subprime mortgage market. When the collapse first began, the majority of our foreclosure clients were low to moderate income, African American homeowners who fell victim to subprime lending. As their interest rates went up but the value of their went down, they found themselves both unable to pay their mortgage and unable to sell their home.

"The sub-prime market provided access to homeownership for families and individuals with poor or limited credit. However it did not promote sustainable borrowing practices and therein became a major threat to wealth accumulation for low to moderate income households," said Tanya Washington, Chief Operating Officer, NHS of Baltimore.

Low to moderate income, minority homeowners need to have access to sustainable, conventional mortgage loans in order to increase homeownership and build their net wealth. NHS of Baltimore encourages folks who are thinking about buying a home to seek financial and homeownership counseling prior to applying for a mortgage loan. It's true that mortgage lenders are requiring much higher credit scores, more downpayment, and more savings. Don't give them an excuse to turn you down. Make sure your credit and finances are in order first. Nonprofits such as NHS of Baltimore offer this counseling free of charge and will work with you personally to ensure you are prepared

Deputy Secretary of HUD Offers Inspiration in Difficult Times

2009-10-15T10:35:00.002-04:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

This past week, I was fortunate enough to hear Ron Sims, Deputy Secretary, U.S. Department of Housing and Urban Development (HUD), give a keynote speech at the Maryland Asset-Building Community-Development (ABCD) network luncheon last week. In his speech about creating sustainable communities, Sims emphasized the connection of so many social issues and problems. For instance, you can’t talk about development without talking about transportation, parks and green space, the environment, homelessness and unemployment. Although tackling these issues from a comprehensive perspective is somewhat overwhelming at times, it is also encouraging to remember that working in one small area can have a positive effect on other issues as well.

Sims pledged that HUD aims to focus more on sustainable urban development. A basic definition of sustainable development is meeting current needs without deterring future generations from doing the same. Sustainability is a word that is thrown around a lot lately in dealing with environmental issues. But it is about more than just the environment – it is about creating vibrant communities that are economically and socially diverse, so that they are viable in the future. Development leaders in Maryland are planning a conference later this month to discuss sustainability, modeled after successful efforts in Washington state. It is important to remember governmental agencies and non-profits cannot promote sustainability on their own; it is going to take community effort.

It can be difficult to think about the future when many of us are struggling to get by from day-to-day. Start off small by making conscientious choices and considering the effects your decisions will have on both current and future generations. Organizing neighborhood clean-ups is one way to make your community an inviting place to be. It is important for visitors to feel as though the residents care about their neighborhood. One community that is showing Baltimore they care is Park Heights, in northwest Baltimore. The residents there host monthly meetings to discuss their local problems and come up with viable solutions. They place emphasis on the individual’s ability to make a difference, and it is working for them.

Enjoy All That Baltimore Has to Offer This Fall

2009-10-07T15:51:00.003-04:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Take advantage of the free events in Baltimore this fall. Learn more about the city you live in and have fun! For instance, the recently finished murals at Hollins Market make for an interesting piece of art that is full of history. Make sure to stop by to see the finished community art project.

Baltimore’s Office of Promotion & the Arts, the same people who bring you the Sunday farmer’s market under the Jones Falls Expressway, are putting on Free Fall Baltimore this October. During the next month several museums, events, and workshops across the city will be free. There is even one night this month when the Baltimore Aquarium will be open free of charge to families. Take advantage of these great opportunities this October to explore the places that make Baltimore unique. Check out a list of the events to see if you will need to reserve passes before attending.

Also this fall, Live Baltimore is offering several free workshops that could be of value to current homeowners as well as potential homeowners. Spend an hour or two this fall learning about Baltimore City property taxes or take a class on money saving tips for homebuyers. Though these workshops are free, you must register online to reserve a space.

Properly Dispose of Hazardous Waste from Your Home

2009-10-06T14:11:00.004-04:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

This weekend the city of Baltimore is conducting a hazardous waste pickup of old paint and pesticides. The location is at the Baltimore Polytechnic Institute parking lot on October 10th & 11th, from 9:00 a.m.-2:00 p.m. Proof of residency is required. Examples of the some of the items permitted for drop-off include gasoline, car and household batteries, paint, pesticides, and pool chemicals. Unacceptable items are acetylene tanks, smoke alarms, fireworks, fire extinguishers, acids, asbestos, and any unknown or unlabeled materials. For more information you can call 311 or click here.

This effort is part of Baltimore’s effort to encourage more green-friendly activities throughout the various communities in the city. Unbeknownst to most of the public, hundreds of thousands of gallons of hazardous chemicals pass through the city by truck, rail, and ship, which potentially spells disaster. This is why the city of Baltimore has to be extra careful in its disposal of hazardous waste materials. People have a right to be educated on the safety issues involved with living in a city which has a high rate of hazardous materials passing through their communities. It is you responsibility as a resident to do your part in prompting a healthy living environment within you own dwellings. Your families will be safer and there will be less occurrences of air pollution.

New Incentive Block Grants Coming From The U.S. Department of Housing and Urban Development

2009-10-01T09:02:00.002-04:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

President Obama recently passed a new Recovery Act in a continued effort to stimulate community development and enhance job growth. On September 23, 2009, U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan allocated some of these funds to over 500 communities in need across the country. The total awarded was $620 million dollars. This is just a portion of the American Recovery and Reinvestment Act totaling $1billion. Last July, this program distributed over $360 million in recovery grants. Under this initiative, HUD has gone full force into recovering our communities and producing viable jobs for U.S. citizens.

Revitalizing neighborhoods, creating suitable living environments, and providing affordable housing contributes to our goal of overall sustainability. Once the economy starts to produce again, jobs return and the housing market stabilizes. This means fewer foreclosures and potentially, more homeowner incentives- especially now that the market for green living is increasing at an unprecedented rate. State and local administrations have received nearly 75% of the funding. It is now up to them to properly funnel it into their respective communities.

The good news is, funding for responsible projects with contracts acquired through a bidding process, are available within 120 days of the grant agreement. Investing in the crumbling infrastructure of our economy is now a huge focus for our administration. This generates maximum economic benefits in the long term. Every dollar spent through this HUD-certified Act can be reviewed and tracked on the Recovery Act website.

Americans will be more at ease seeing where their money is going and what it is being used for. Federal leaders can be held accountable now. Business opportunities and job growth is achieved through housing rehabilitation and the construction/improvement of public-use facilities. Hopefully, this will be the start of our economic revitalization on a sustainable level.

Buy Local, Support Your Community

2009-09-30T09:14:00.002-04:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

One way to be involved in your neighborhood and promote community is through buying local. “Buying local” can mean many different things but a basic definition is supporting independently-owned businesses rather than larger, chain stores. Additionally, another aspect of buying local includes buying produce that is grown nearby, rather than shipped hundreds or thousands of miles.

You can find out more about buying local in Baltimore through the educational campaign Buy Local Baltimore. Their website elaborates on several reasons that buying local benefits the community. For instance, when shopping at local businesses more money goes into the local economy which in turn can make our neighborhoods a better place to live.

Some common misconceptions about shopping at independently-owned businesses instead of chain stores are that it is both inconvenient and expensive. However, shopping at local businesses can also mean better service. In addition, shopping at a smaller store or farmers market often means buying more of what you need and less wasteful spending on items you may end up throwing out. Check out Buy Local Baltimore’s business directory for a list of local businesses and discounts.

A great way to buy local this fall is to shop at one of the several farmers markets in the Baltimore area. I recently went to one of the Baltimore farmers markets and got bags full of fruits and vegetables for just ten bucks. Not only do farmers markets have great deals, but the experience is fun. Wandering outside through the several food and craft vendors can be much more enjoyable than a dreaded grocery store trip.

AEI and NHS of Baltimore Launch Borrow and Save Program (small loans for East Baltimore Residents)

2009-09-24T14:08:00.005-04:00

Baltimore, MD.

In an attempt to battle the use of so-called “Pay Day Loans” and “Cash Advances” in low income neighborhoods, the Baltimore Alliance for Economic Inclusion (BAEI) and member nonprofit Neighborhood Housing Services of Baltimore, Inc. (NHS) announced a new pilot loan program on September 24, 2009 during a press event.

The press event was hosted by NHS on Park Avenue in Baltimore and included Robert W. Mooney, Deputy Director, Consumer Protection and Community Affairs, Division of Supervisor and Consumer Protection, Federal Deposit Insurance Corporation (FDIC); Maryland Commissioner for Financial Regulation Sarah Bloom Raskin; Baltimore City Council President Stephanie Rawlings-Blake, Baltimore City Housing Commissioner Paul Graziano, and other dignitaries, as well as members of BAEI.

The Borrow and Save Loan Program is a pilot program designed to help low-income families and individuals break the continuous cycle of borrowing from “payday loan”, “check cashing” or “cash advance” vendors, many of whom charge as much as 26% interest for clients in need of “fast cash”.

The most recent research conducted by NHS of Baltimore in 2008 shows the ratio of traditional banking institutions to check cashing and pay day lending centers varies greatly by neighborhood in Baltimore depending on the area median income (AMI). The study shows some disturbing trends:

• Neighborhoods with AMI of $60,000 and above have 1.6 times more traditional bank and credit union storefronts per population than neighborhoods with AMI of $30,000 or below
• Check cashing centers are 5x more prevalent in those same low income neighborhoods than in the higher income neighborhoods

BAEI and NHS of Baltimore see a clear correlation between household income and the use of check cashing centers for banking needs, instead of safer, traditional banking institutions. Individuals and families who are traditionally banked are typically more financially stable and solvent with a better understanding of budgeting and saving.
To qualify for the program, individuals must be:
• A resident of the East Baltimore area- zip codes include: 21202, 21205, 21213, 21224, and 21231
• Have some form of steady income (i.e. job, unemployment, disability, etc.)
Participants will have the opportunity to borrow from $300 up to $1,000 and will be allowed to pay the loan back over the course of one year.

How to obtain a Borrow and Save Loan:
• Loans may be obtained by qualified individuals through Neighborhood Housing Services of Baltimore, Inc. at 819 Park Avenue, Baltimore, MD 21201
• Loan participants are required to participate in one-on-one counseling and financial fitness education to learn about saving, budgeting and using traditional banking institutions.
• Eligibility and payment cycles for each participant will be determined and monitored by one of NHS of Baltimore’s trained, not-for-profit loan officers
• To help break the cycle of loans/cash advances, participants have the opportunity to open a savings account to which NHS of Baltimore will match $5 dollars every month of what they save, as an added bonus and extra incentive to save

To apply for the Borrow and Save Loan today, please call 410-327-1200.
To read other articles about the program click these links. Baltimore Sun, Baltimore Business Journal

Housing Resource Day in Baltimore County

2009-09-23T10:58:00.002-04:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

I recently participated in Housing Resource Day in Baltimore County. In addition to NHS, several other housing-related organizations were present to speak with homeowners and to offer assistance and resources. Individuals could also participate in workshops on topics such as homebuyer education.

One woman I spoke with expressed her gratitude towards all of the assistance available concerning homeownership matters. She explained that when she was a first-time homebuyer, twenty-five years ago, these resources for homeowners and potential homeowners were not around.

However, despite this woman’s insights into all of the currently available resources, the event had low attendance. This got me thinking that perhaps many homeowners are unaware of all the free and reliable resources that are available to them. This point emphasizes the importance of outreach on the part of non-profit organizations. We cannot just assume that people are aware of, or will take advantage of our services.

Nevertheless, most individuals who did attend the event had a positive experience. Furthermore, I had the opportunity to learn more about the other organizations that participated in the Housing Resource event.

Attention: Dundalk Water Main Break Victims

2009-09-22T13:08:00.003-04:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

The unfortunate occurrence in Dundalk over the weekend has opened a new gateway for housing scams. Victims of this disaster are in need of hefty repairs and insurance assistance. Unfortunately, scam artists take situations such as these to capitalize upon the needs of the community. Remember to only deal with a licensed contractor. Proof can be shown through their home improvement license numbers on all their paperwork.

Another point of interest is not to pay more than one-third of the total contract price up front. Any initial pay above this is illegal in the state of Maryland. They know people can become desperate for help during an unexpected disaster. Not everyone has all the capital necessary to pay for costly repairs. In order to avoid a potential scam, the best sources to go to for information are the Baltimore City Office Help line: 410-685-0123 and The Maryland Insurance Administration (MIA): 410-468-2340.

In addition, here are some MIA tips associated with disaster recovery:

Make sure you understand and clarify with your insurance agent, what is covered and what is not.

Take as many photographs and video footage documentation as possible to assist your insurance agent with assessing the damaged areas.

If relocation is necessary, make sure the insurance company knows where to reach you.
Keep all your receipts for any emergency repairs and/or temporary living expenses.

Most importantly, if your insurance company denies any part of your claim due to a disaster, do not be discouraged, you may qualify to file for federal relief under the government’s disaster act.

Become Apart of Your Neighborhood, Join a Community Association

2009-09-16T11:55:00.002-04:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Having recently moved to Baltimore, I have a lot to learn about the city and the many neighborhoods. In my work as an Outreach Coordinator, I have been learning about neighborhoods within the city through research and a bit of time wandering throughout the city. However, in order to truly become part of my new community, I realized that I need to do more than just research online or stroll through my neighborhood.

One way that I decided to get more involved was to go to a community meeting in the area I live. Attending a neighborhood association meeting is a great way to meet neighbors and get involved in your community. Working with fellow residents towards common goals both allows you to be aware of what is going on in the community and it is empowering.

From attending the meeting in my neighborhood, I gained knowledge about pertinent issues in my community. I began to form relationships with my neighbors. Now I am more equipped to discover what my role can be in making the neighborhood a better place to live. Being at the meeting showed me that everyday interactions and conversations with local residents has the potential to teach me so much more than what any book or website could tell me.

Do you know what is going on in your neighborhood? Try attending a local meeting – meet neighbors, find out what issues concern fellow residents, and get involved. We all have unique skills, experiences, and connections that we can contribute to enhance our communities. Check out the Baltimore Housing website for a list of dates for upcoming community meetings. You can also find a group near you using Baltimore City’s Community Association Directory.

Congressman Elijah Cummings' Foreclosure Event Broadened My Perspective

2009-09-15T13:48:00.008-04:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

This past weekend, my colleagues and I were fortunate enough to participate in a free foreclosure prevention event held in Baltimore. It was unlike anything I had experienced in the past. My expectations as a volunteer were completely altered once I began working.

The morning started out fairly commonplace. Once the doors opened, the reality of the desperate need for housing services hit home for me. There were approximately 100 people waiting outside even before the event opened. By mid-morning, there was a line of people around the building. We estimated 1500 people showed up trying to fight for their homes.

I encountered people from all walks of life and situations. One of my duties was to manage the enormous crowd who tried to rush all of the lenders. I took some time throughout the day to speak with individuals and families about their particular experiences in this recession. There were three families whom I took personal interest in over the course of the day.

The first lady I spoke with ran up to me and begged me to help her. She had been in a dispute with her lender for 8 months to no avail. She felt she had run out of options and no one would hear her case. It is interesting to note, this woman was fully employed and received a decent salary, however she was the victim of an Adjustable Rate Mortgage (ARM). Her partner had also lost his job due to the recession. She tried to work something out with the bank but she said they would not return her calls or respond to other forms of attempted contact.

Surprisingly, a number of people complained about not being able to connect successfully with their lenders via telephone. This is why they chose to come to the event instead and seek help from the pro-bono attorneys present at the event. Another couple told me they had driven three hours to be there because they felt they had no other options. A third person told me she would chain herself to the building until someone helps her out. I overheard quite a few individuals discussing their cases and trying to find alternatives to survive.

I knew a lot of people were facing foreclosure but up until this point, I did not know the level of desperation. Not everyone was able to get the resolve they had hoped for as some cases were more complicated than others. For a few people who were on this side of the coin, I was able to reach out to a number of them and encourage them to contact our office for some help. This brought an air of relief to them in so many ways.

Basically, all people wanted was some encouragement and to know someone cares about them and their families. In all, I am glad this event was held because I saw so many people crying and heard sounds of relief that they had been able to come to a resolution with their lenders. I hope this initiative can continue in the future.

Homeowners Don't Have to Go it Alone

2009-09-09T16:11:00.001-04:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

Today, NPR’s Morning Edition featured a story concerning how busy banks are getting in dealing with foreclosure prevention.

The mortgage crisis has affected thousands of homeowners over the past year. With so many people facing foreclosure, many lenders are now considering loan modifications. Preventing foreclosures not only benefits homeowners and families, it is also beneficial for businesses, real estate and the economy. Some banks, such as Bank of America have hired thousands of new employees to deal specifically with foreclosure and delinquency mitigation.

Unfortunately, some homeowners who want to modify their loans have experienced problems when it comes to actually getting the modification. This emphasizes the importance of utilizing free resources in order to advance the process of loan modification or refinancing. Many people are having difficulties achieving a loan modification from their lender by themselves and it is a good idea to consult a free, responsible, HUD approved counselor for help.

Add Color to the Trees Around Your Home- Knit a Sweater

2009-09-08T13:47:00.007-04:00

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

Urban knitting, graffiti knitting, yarn storming, yarn bombing- it's a growing fad. Knitters across the country are knitting graffiti on trees, park benches, light poles and practically anything else you can think of. In Baltimore, it has become especially popular. The picture to the right (courtesy the Baltimore Sun), was taken in Hampden just this past weekend and highlights the budding prevalence of the new urban art form.

What a great way to express your creativity and liven up your front yard. And with the colder months drawing closer, I'm sure the trees will thank you too. However, I will say that if you don't already know how to knit, you may want to practice with a smaller object until you get the hang of it. If you already know how to knit, you'll be churning out sweaters for your trees in no time.

Click here for a template and step-by-step instructions on how to get started, from a veteran knitter.

Loan Modifications a Lucrative Business for Scammers

2009-09-04T13:02:00.003-04:00

By: Jason Rich, Community Outreach Coordinator, NHS of Baltimore

While my associates and I were flyering for NHS in Fells Point the other day, we were asked by a muscular man with a beaming smile if we were doing loan modifications.

We said, "Yes, Neighborhood Housing Services offers free counseling to help homeowners obtain a loan modification. Unfortunately, these same free services are being offered by scam companies for thousands of dollars. We are out here trying to get the word out so that people in vulnerable situations don't lose even more money."

Without missing a beat, the young man replied excitedly, "It's great work! I'm about to get into the foreclosure business too. People are making a killing on it right now! You can charge like $1,500 or more for a loan modification!"

Troubled by his response, we replied to him, "OK, but we help homeowners obtain loan modifications for free. Why would a person in financial trouble pay $1,500 for a free service?"

His ever-glowing optimism unrelenting, "Well, it's still helping people!"

"It's not though," we said.

After a brief period of silence that lasted five seconds, but felt like forever, we said our socially acceptable goodbyes and went on with our day. As soon as he was gone, my associate and I looked at each other incredulously. Did he really believe that he would be helping people by taking a large sum of money that they probably don't have to give? Or was he just deluding himself so that he could cash in on the times? Either way, the experience showed us that these scams are coming from every direction indeed, even the boy next door.

If you are facing foreclosure, you may get phone calls, flyers, or e-mails from companies claiming they can save your home if you pay their fee. Don't fall for it. In Maryland, it is illegal to charge consumers up-front fees for a loan modification. These companies are out to scam you.

Neighborhood Housing Services provides reputable, quality loan modification and home-ownership counseling services for free. If you live in the Baltimore area and are facing foreclosure, call us at: 410-327-1200.

10 Most Expensive Neighborhoods in Baltimore

2009-09-04T09:29:00.003-04:00

Jamie Smith Hopkins of the Baltimore Sun released a list of the most expensive neighborhoods in Baltimore city yesterday.

1. Homeland: Average price: $549,900

2. Roland Park: Average price: $487,300

3. Guilford: Average price: $471,20

4. Inner Harbor: Average price: $423,800

5. Otterbein: Average price: $361,700

6. Federal Hill: Average price: $323,900

7. Mount Washington: Average price: $313,300

8. Locust Point: Average price: $298,400

9. Bolton Hill: Average price: $293,900

10. Fells Point: Average price: $291,500

10 Most Expensive Places to Live in Baltimore Metro Area

2009-09-02T11:42:00.002-04:00

Jamie Smith Hopkins, Real Estate Wonk columnist for the Baltimore Sun, released a list today of the top 10 most expensive places to live in the Baltimore area.

10. Towson (Baltimore County-21204): Average price: $500,300

9. Riva (Anne Arundel County- 21140): Average price: $531,900

8. Phoenix (Baltimore County- 21131: Average price: $542,200

7. West River (Anne Arundel County- 20778): Average price: $587,100

6. Fulton (Howard County- 20759): Average price: $621,800

5. Clarksville (Howard County- 21029): Average price: $622,400

4. Highland (Howard County- 20777) Average price: $666,900

3. Monkton (Baltimore County- 21111): Average price: $668,200.

2. Davidsonville (Anne Arundel County- 21035): Average price: $707,600

1. Glenwood (Howard County- 21738): Average price: $843,700

Baltimore Department of Housing to Crack Down on Permit Violations

2009-09-02T11:12:00.004-04:00

By: Ellen Frick, Outreach Coordinator, NHS of Baltimore

If you are a homeowner thinking about any construction or repair projects, make sure you are aware of the laws for acquiring a permit. Several regulations exist and as of recently, the Baltimore City Department of Housing stated that they are going to crack down on violations. Punishment could consist of a written warning, or expensive fees. You can read more about the specifics here.

Even less elaborate projects such as building a fence or repairing plumbing, may require you to get a permit before any construction begins. Check here to see if you will need a permit and if you will be able to get it over the counter. If you have any questions about whether or not you need to apply for a permit, call Baltimore Housing's Office of Permits & Building Inspections at 410-396-3360.

There are several reasons why the permit system is in place. Not only does it ensure that city codes are being met, the permit system seeks to preserve the historic districts of the city. Remember, if you are not sure if the work you will be doing will require a permit, call Office of Permits or check out their website to learn more. It is better to be safe than sorry in order to avoid paying those expensive fines.

BGE Offers New Energy Efficiency Incentives for Low Income Homeowners

2009-08-31T13:36:00.003-04:00

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

As summer comes to an end, most of us are getting prepared for the cooler season, which is just around the corner. We are all aware of the dreaded energy bills that come with ol’ Jack Frost. Now, BGE has created a program called Limited Income Energy Efficiency Program to make it easier to save energy and utility costs on a daily basis. If qualified, homeowners can take advantage of energy saving services and quality home improvements already included in their BGE service. There are many ways to make a home more energy-efficient. Some examples are as follows:

• Gas boiler repairs for natural gas customers
• Air sealing-(weather stripping, caulking)
• High-efficiency lighting
• Insulation
• Major appliances
• Water heater tune-up, repair or replacement (excluding propane and oil heaters)

To take advantage of this program, a certified “energy advisor” needs to conduct a comprehensive home energy audit to see if your home is eligible for the program. This audit and any follow up improvements, is provided at no additional cost to you. It is a part of your current service agreement. To learn more, click here.

Right of Rescission a Little Known Treasure

2009-08-27T15:55:00.002-04:00

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

As homeowners, many of you may not be aware of all the financial tools you have at your discretion. In fact, I learned something new myself today after reading an article in the Washington Post about homeowners’ “right to rescission”. This provision actually allows you as a homeowner to back out of a refinance deal within three days of closing. Let me repeat that- if you think you were pressured into terms that aren’t so good, or you find better terms elsewhere, you have three days after the closing to back out of the loan with absolutely no penalty.

Believe it or not, this is not a post mortgage meltdown law and it is by no means new. The homeowners’ “right to rescission” is actually a provision of the 1968 Truth in Lending Act. Although it can be an extremely useful tool for consumer protection, many people are not aware it exists.

It is important to point out that in order to qualify for the “right of rescission”, the property you are claiming it on must be your primary residence. Furthermore, it does not cover first purchase mortgages because it is not possible to rescind the “purchase” itself, which is different from the financing of the purchase.

This little known tool could save you thousands of dollars- so if you’re thinking of refinancing, keep it in mind.

Time Running Out for the $8,000 Homebuyer Tax Credit

2009-08-25T10:34:00.001-04:00

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

A quick reminder for you would-be first time homebuyers out there- your chance to receive the $8,000 tax credit is growing more and more limited. According to the Internal Revenue Service’s (IRS) website, you have until November 30, 2009 to close on a home mortgage in order to receive the tax credit. Commonly, prior to closing you must have title insurance, homeowner’s insurance, termite inspection certification, water and sewer certification, certificate of occupancy or building code compliance letter, and a final inspection by you and your real estate agent.

To meet these requirements, you are looking at a minimum of 30 days from the time of commitment to the time of closing, but in many cases it could take as long as 60 days. So if you’re thinking about buying a home and wish to receive the tax credit, you must start the process no later than October 30, 2009- and that is pushing it close. Optimally, you’ll want to start no later than September 30, 2009.

Don’t forget, only first time homeowners are eligible for the tax credit, meaning you cannot have owned a home within the last three years. Furthermore, the home you are purchasing must be your primary residence and cannot leave that status for at least three years in order for the loan to be completely refundable.

For more information, please visit the IRS website, or federalhousingtaxcredit.com

First Time Homebuyers Seeking FHA Backed Mortgages

2009-08-21T11:20:00.001-04:00

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

According to an article in the Baltimore Sun, more people are seeking Federal Housing Administration (FHA) backed mortgages than they have since 2005. In July, 40% of new homeowners in Baltimore chose to go with a federally insured loan over a conventional private loan. This is an amazing reversal from the pre-mortgage meltdown mess and it means people are being more cautious.

Although the housing market is far from rebounding just yet, federal incentives to buy a new home are at their pinnacle. Now is a great time for first time homebuyers to get into the market because housing prices are low, incentives are high and scammers are on the run. NHS of Baltimore attributes the rise in preference for FHA backed mortgages not only to the fear caused by the mortgage crisis, but to the loads of help coming from the federal government in an effort to stabilize the housing market.

If you would like to learn more about an FHA backed mortgage, click here.

Counselors Reaching More Struggling Homeowners than Ever Before But Still Battling Slow Loan Modifications

2009-08-19T10:46:00.000-04:00

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

For obvious reasons, there has been an influx of homeowners seeking foreclosure help over the last year from NHS of Baltimore and similar agencies. Our housing counselors are seeing 30- 40 new people a month, on top of the cases they continue to follow up and work on. According to NeighborWorks America’s report to Congress on the National Foreclosure Mitigation program, counseling agencies are reaching more homeowners than ever before, in an attempt to help them keep their home. However, the desperately needed loan modifications are not coming in nearly as fast as hoped.

The introduction of the Making Home Affordable loan modification program is supposed to help ease the worries of servicers and encourage them to offer more modifications, based on a three month trial to see if the homeowner can handle it. Although the program is making headway in this arena, it still has a huge gap to fill. According to CNNMoney.com, only 9% of eligible, delinquent borrowers have been put into trial modifications, and according to NHS of Baltimore's counselors, servicers can still take more than a month to grant a loan modification.

CNNMoney offered 5 simple and often technical reasons why modifications tend to take so long.
1. Faxing of documents: important information gets lost or cut off, delaying the process for the homeowner. “We have to really be on top of following up with the servicers because if paperwork gets lost in the process or was not received, they often do not tell us,” says Rena Somar, Homeownership advisor, NHS of Baltimore.
2. Multiple forms need to be filled out: homeowners must complete several forms for the servicer, as well as the underwriter.
3. Outdated documentation: often times, homeowners’ bank statements and pay stubs become out of date while their application is being processed, requiring them to hunt down and submit new documentation.
4. Poorly trained personnel: servicers are hiring so many new personnel to handle the influx of applicants and they often do not have time to properly train them.
5. Unclear modification offers: some homeowners who never applied for a modification to begin with are receiving offers from the servicers, but the terms and new monthly payment are unclear so people disregard it.

How Can You Make a Difference in Your Community and Connect with Your Neighbors? Volunteer!

2009-08-14T09:48:00.004-04:00

By: Jessica Schmidt, Philanthropy Manager, NHS of Baltimore

At NHS of Baltimore we just welcomed three VISTA members who will be working with us for their year of service. Since all three of our VISTAs are coming from out of town, it got me thinking, what is a great way to get to know people in the community when you are new in town? You can join like-minded clubs, or sports leagues, but in my opinion volunteering is one the best ways to get to know your new community.

I think Benjamin Franklin said it best when he said, “No one is useless in this world who lightens the burden for someone else”. In this economy and in these tough times, so many people and organizations need help of some kind. Not only will your volunteer time help an organization to reach its goals, but it is also a great way to get out and meet people; and since they are volunteering for the same organization as you, you'll probably have similar interests.

So where to begin? Think about what causes you are most passionate about and causes that you would want to directly work with in order to make a difference. Also, think about what you want to do as a volunteer and what capacity you can fill for a nonprofit. In Baltimore, it seems like the sky is the limit for volunteer opportunities, you can volunteer at an animal shelter, you can serve breakfast to homeless women, you can help campaign for the environment, you can tutor a child- really whatever peaks your interest you can probably find a volunteer position to fill it.

Once you have an idea as to what you would like to do, check out websites such as Baltimore Volunteer Central, Volunteer Match, and Idealist http://www.idealist.org/, or just take a stroll around your neighborhood. If you know of a nonprofit you want to help, check out their website or give them a call. Many nonprofits are struggling in this economy and will welcome all the help they can get.

In these tough times it is important to remember that we are all in this together and we can all work to make Baltimore a better place to live. For those of you that are new to Baltimore, welcome! We look forward to getting to know you better.

NHS of Baltimore Preventing Foreclosure One Family at a Time

2009-08-12T13:21:00.002-04:00

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

NHS of Baltimore is in the business of preserving and creating financial stability for families and our housing counselors fight hard everyday to stop foreclosures and increase homeownership. In the current housing market, it is nice to hear a story of success now and then, contrary to the usual bad news of another family losing their home.

Last week, our counselors successfully negotiated a loan modification for a client who was struggling to pay her mortgage of $1,000 a month. We worked with her lender to get her out of an adjustable rate of 7.5% and into a fixed rate of 5.5%. Ultimately, we were able to bring our client’s monthly mortgage payment down to $750- a compromise both her and her lender could afford.

Ask any one of our counselors, and they’ll tell you, “its not easy”. Up until more recently, many lenders were hesitant to modify delinquent loans because they were unsure whether they were just delaying the inevitable. The Making Home Affordable program has helped to change that slightly. “We are now getting more cooperation from the lenders due to the three month trial period for the modification,” said Rena Somar, Homeownership Counselor, NHS of Baltimore.

Press Release: What You Should Know About Reverse Mortgages Before Applying

2009-08-04T15:54:00.002-04:00

The Consumer Credit Counseling Service (CCCS)of Maryland and Delaware put out an important press release last week about reverse mortgages. NHS of Baltimore thought we should share it with you.

BALTIMORE) A reverse mortgage allows you to borrow money against your home while you remain living there and without making payments on the loan. In the past year, this type of home loan has gained increasing popularity with older adults. Before you apply for one, make sure you understand your rights and responsibilities and how reverse mortgages work.

Do You Qualify? In order to qualify for a reverse mortgage you and your spouse must be at least 62 years of age, and you must have equity in your home. Generally you can qualify for one regardless of your current income level or credit score.

Reverse Mortgage Basics. A lender loans you money based on the value of your home, the amount of equity you hold in it, and your age at the time of application. The money you receive can be paid to you in monthly installments, as a lump sum, or as a line of credit, whichever works best for you. No matter how the loan monies are paid out, you generally don’t have to repay them until you die, permanently move away, or sell your home. If you decide to sell your home, you are allowed to keep any proceeds from the sale in excess of what you owe to the lender.

Loan Amounts. The amount of money that you can obtain depends on the specific reverse mortgage plan or program you choose. It also is affected by the type of cash advances you require. Some reverse mortgages cost a lot more than others, and this may restrict the amount of money you will ultimately receive. Generally, the older you are and the more your home is worth, the more money you can get. The interest rates and closing costs for home loans in your local area may also affect the specific dollar amount available to you.

Closing Costs and Finance Fees. The costs related to obtaining some types of reverse mortgages may be high. However, you can use the money that you receive from the loan to pay for origination or closing fees. This is known as “financing” the loan costs. Under this plan, the costs are added to your loan balance, and you repay them with interest at the end of the loan.

Your Role as a Home Owner. Under a reverse mortgage, you retain the title to your home. As before, you are responsible for paying property taxes and home insurance and for making necessary property repairs. When the loan comes due, you or your heirs must repay the loan balance.

The above press release was written by CCCS of Maryland and Delaware. If you would like to learn more about reverse mortgages and whether you should seek one, you may contact NHS of Baltimore and set up a free appointment with one of our housing counselors. 410-327-1200.

Making Your Home a Safe and Friendly Place for Your Pet

2009-08-03T15:20:00.004-04:00

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

If you're an animal lover like me, you probably have one or several pets in your home, or you're thinking about bringing a new one home soon. Pets can be a wonderful and joyous addition to your home if the proper preparation is applied first. Without it, you could find yourself in a stressful situation that won't benefit you or your pet. As with small children, you constantly have to be aware of hazards and mischief your animal can get into. You have to see your home from their prospective. Here are a few tips to get you started.

1. Put away or secure breakables- your belongings are priceless to you, but to your pet, they are just another object. Whether you have a trapeze kitty who likes to walk on your dresser, shelves, counter or television console, or you have a hyper pup who likes to tear around the house as fast as he can, you need to be aware accidents happen. The best thing to do is to secure or put away those belongings which you could not stand to have broken. Next you should set boundaries with your pet and let them know where they are not allowed to go. This will save you a lot of headaches in the future.

2. Understand that your puppy will chew!- Young dogs inevitably love to chew on things. So you have two options- provide them with chew toys and bones, or let them chew your furniture and clothing. But giving them a toy is not enough. You should also keep all cords and clothing off the floor and don't leave them alone during the day in a room with furniture you don't want chewed.

3. Create a sheltered and safe place for them to sleep- when you train your pet to sleep in a space that is dedicated to them, they will be less likely to invade your sleep space at night.

4. Keep all medications and chemicals out of reach- once again as with small children, pets can get into get into things that can harm them. Be sure that all household chemicals are always secure in a cabinet or out of the reach of your pet. Furthermore, don't leave any medications laying around. Although their curiosity can be cute, it can also be deadly. The same rule may be applied to certain types of plants which may be hazardous to your little friend. Do some research on your plants prior to bringing the pet home. Find out if they could be poisonous.

5. Make sure your yard is secure and safe- if you have a dog and plan on leaving them in the yard while you're at work during the day, you definitely have to take some extra precautions. First, be sure that the yard is securely fenced in and there are no holes for your pet to escape through, or wires to cut them. Also be sure that you provide your pet with some sort of shelter to offer refuge against both heat and cold. Lastly, make sure they have plenty of water before you leave.

If you follow these simple tips, you will enjoy a lifetime of companionship and joy with your pet.

New Report Released by Congress Reveals African Americans Hardest Hit by Foreclosures

2009-07-27T14:32:00.005-04:00

The latest numbers about foreclosure are out. The findings- 28% of all homeowners who received foreclosure prevention counseling through the National Foreclosure Mitigation Counseling (NFMC) program were African American. This number is pretty astonishing when according to NeighborWorks America, "African American homeowners make up only 9% of the nation’s homeowners. 24% of the nation’s homeowners are racial/ethnic minorities, with Hispanic homeowners accounting for 11%, and Asian/Pacific Islanders accounting for 4%."

To read the entire NFMC report, click here.

Is There a Carbon Monoxide Leak in Your Home? Know the Symptoms

2009-07-24T15:20:00.003-04:00

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

If you have a gas furnace, gas water heater, gas cooking range and oven, gas dryer, gas or kerosene space heater, fireplace, or wood stove in your home, there is always a chance that one may leak carbon monoxide if not functioning properly. Knowing the symptoms and what to do in the event of poisoning could save you and your family's life.

The Symptoms: according to the U.S. Environmental Protection Agency (EPA), the following symptoms are tell-tale signs you have carbon monoxide poisoning.

1. severe headaches
2. dizziness
3. mental confusion
4. nausea
5. fainting
6. shortness of breath

Noticeably, many of these symptoms resemble that of the flu. However, if symptoms decrease or go away once you are outside your home, you may have CO poisoning. If you believe there is a CO leak in your home you should get all family and pets out of your house immediately and go to the emergency room. A simple blood test can determine if you have been poisoned.

If CO poisoning happens to you in your sleep, you could die. It is always advised that you install a CO detector in every room of the home for added protection.