Smart Keys is latest form of grant initiative to help employees live near where they work
A popular state home-buying assistance program that critics complained contributes to suburban sprawl has been renamed and retooled to encourage home shoppers to live closer to where they work.
Smart Keys for Employees is the latest name for the on-again, off-again purchasing assistance program offered in a variety of forms for much of the past 10 years by the Maryland Department of Housing and Community Development.
Unveiled with little fanfare in April, the program offers qualifying home buyers grants of up to $5,000 to help pay settlement costs, if their new residence is within 10 miles of their workplace, or in the same county or municipality.
"It's a good program, and it's working well," said William Ariano Jr., deputy director of community development in the state housing department.
Smart Keys replaced a similar program called Live Near Your Work Plus. Begun last year by the Ehrlich administration, that program drew fire from growth-management advocates because the state aid was available on any existing home within 25 miles of the buyer's workplace.
The Ehrlich administration version offered qualifying buyers grants worth up to 3 percent of their mortgage to help cover closing costs.
That aid proved popular even as the housing market began to slump last year, since the fees and taxes required to purchase a home in Maryland are among the highest in the country.
But growth-management advocates and legislators complained that the 25-mile commute allowed under the Ehrlich program undercut the spirit of the state's Smart Growth policy.
The state began offering aid to home buyers based on where they work a decade ago under Gov. Parris N. Glendening. That program, simply dubbed Live Near Your Work, was part of the Smart Growth policy that Glendening crafted to guide Maryland's development. Under it, nearly 1,000 buyers got grants of up to $3,000 when buying homes in neighborhoods targeted for revitalization.
Ehrlich administration officials defended their more expansive approach, arguing it was intended to help suburban and even rural buyers, and not just the Baltimore City residents, who got the lion's share of the aid under Glendening.
The O'Malley administration's approach reins in the distance a buyer may live from work, but remains more liberal than the original aid program. Ariano said the new program attempts to be faithful to the Smart Growth policy of encouraging more compact development while also being relatively simple to follow.
"How do you incentivize somebody who is working in Salisbury to live where they work?" Ariano asked, "Because it's difficult in some cases to find housing in the immediate area."
Still, the housing official acknowledged that some counties are so large that the allowed commute can exceed 10 miles.
"It can be appreciable," Ariano said, "certainly [for] somebody that works in Dundalk, if they're buying a house up in Maryland Line."
Smart Keys is actually an add-on to another state home-buying assistance program, called House Keys for Employees. That initiative offers to match grants of up to $5,000 that buyers of affordable housing may receive from participating employers.
To get the additional $5,000 grants under Smart Keys, the home being bought must be in a designated growth zone called a "priority funding area." For more information on that and other state housing assistance programs, go to www.morehouse 4less.com.
The Smart Keys program has helped buyers of 60 homes so far, three-fourths of them in Baltimore, according to state figures. Buyers of those homes received a total of $409,000 in state aid, including other loans and grants.
The latest iteration of the home-buying aid program drew a lukewarm reaction from an outspoken critic of the previous effort.
"It's not quite as direct as 'Live Near Your Work,'" said Dru Schmidt-Perkins, executive director of 1000 Friends of Maryland, a growth-management advocacy group. "I'm not entirely excited about that."
But Ariano defended the name change, while acknowledging that the O'Malley administration wanted to put its own stamp on the program
"Another reason, frankly was just marketing," he said.
"You can have the greatest thing in the world, but unless you have something with a little sizzle to it, it won't take off." (By Timothy B. Wheeler |Baltimore Sun)
Showing posts with label help for homeowners. Show all posts
Showing posts with label help for homeowners. Show all posts
Friday, November 30, 2007
Tuesday, August 21, 2007
Behind on your mortgage? Ask for help right away
Don't wait until you become delinquent on your mortgage payments or are facing foreclosure before seeking help.
That's the key advice from housing counselors in the Baltimore area, who are trying to get struggling homeowners out from under ballooning mortgage payments.
"The moment they're falling behind, or think they're falling behind, call us immediately," said Ashidda Khalil, director of the Baltimore office of the Neighborhood Assistance Corp. of America, a nonprofit housing advocacy group. "Because for some reason they became afraid, and don't talk to the lender, it gets out of control."
There are several options for Marylanders, especially subprime borrowers, who housing counselors say have seen their monthly payments double in some cases as interest-only or adjustable-rate mortgages (ARMs) reset.
During the housing boom, many buyers stretched to buy a home before prices rose higher. They sought subprime mortgages because they meant lower payments in the first few years.
In addition, lenders made more subprime loans, typically at higher interest rates, to people with spotty credit records.
During 2004 and 2005, subprime loans nearly tripled, according to the Federal Reserve.
But now, as home values flatten or even decline and higher interest rates kick in, many homeowners can't keep up. Those with little or no equity are finding it tough to find new, fixed-rate loans or even sell the house for what they owe.
The state and some nonprofit organizations offer refinancing options for homeowners in dire situations. Many have eligibility requirements, such as income limits.
$1 billion in refinancing
Neighborhood Assistance, for instance, recently announced a commitment of $1 billion to refinance loans of people at risk of losing their homes.
To qualify, homeowners have to have subprime mortgages with interest rates of 10 percent or higher, Khalil said. They can refinance into a 30-year loan with a fixed rate that is 1 percent below market. So far, Khalil said the group has helped several Baltimore homeowners refinance and prevent foreclosure.
Neighborhood Housing Services of Baltimore Inc., a nonprofit group whose mission includes providing affordable housing, offered $1 million to refinance loans between January and May but then ran out of money because of the high demand.
The organization expects to have financing again in October.
Neighborhood Housing also offers emergency loans of up to $5,000 to help homeowners through tough months. The foreclosure process is quick in Maryland and the loans help people buy time, the group said.
"The idea is to forestall things for a limited amount of time and give homeowners time to fix the problem," said Felix Torres, the group's executive director.
"The customer that we were able to refinance basically had subprime loans they couldn't afford," Torres said. "In some cases they could barely afford it, and they were facing interest rates that were just going to push them over the edge."
Funding exhausted
The Community Assistance Network in Dundalk, too, recently exhausted its limited funding to help homeowners avoid delinquency and foreclosures, said Jon Brown, the group's sole housing counselor. The maximum grant is $450, and homeowners would have to provide the difference to bring payments current.
Marylanders also may qualify for the state's new Lifeline Refinance Mortgage program.
The loans, which have income limits, currently carry an interest rate of 6.5 percent.
Lifeline has about a dozen loans in the pipeline and has had about 600 inquiries since June. Officials expect to see an even bigger wave next year when more adjustable-rate mortgages reset, said Russell Thomas, a spokesman for the Department of Housing and Community Development, which administers the program.
Aside from financial help, nonprofit groups provide free counseling. Housing counselors can work with lenders to review options, such as lowering the interest rate.
"We're calling lenders and asking them to modify the loan so this person can continue to live in their home and raise their family," said Khalil of the Neighborhood Assistance. "We're pleading with lenders."
The St. Ambrose Housing Aid Center Inc. is on track this year to see nearly triple the amount of people it normally helps, from 700 to over 2,000 clients. The center said many homeowners had adjustable-rate loans and are now being squeezed. Others got into houses they couldn't afford. Many are coming in too late.
St. Ambrose will contact a homeowner's lender to see if better financing terms can be worked out. The center can also refer people to refinancing programs. It helps to sell the properties if it's too late to save them.
"Many of the families are already behind on their mortgage payments and the options become fewer and fewer," said Lisa Evans, deputy director of St. Ambrose. "People need to come in before their ARMs adjust and before their interest rates increase."
Where to seek help
Here are some places where homeowners struggling to make mortgage payments can turn to for help or further referrals:
• Lifeline Refinance Mortgage Program
A state program that provides refinancing. http://www.dhcd.state.md.us/Lifeline/ 877-462-7555
• St. Ambrose Housing Aid Center Inc.
Offers free counseling and referrals http://www.stambros.org/ 410-366-8550
• Neighborhood Housing Services of Baltimore
Provides emergency loans. It expects to have new funding available for refinancings in October. 410-327-1200
• Neighborhood Assistance Corp. of America
Offers a refinancing program and homeownership counseling. https://www.naca.com/index_main.jsp 410-783-0465
• Maryland attorney general's office
List of foreclosure counseling services http://www.oag.state.md.us/Consumer/foreclose.htm
• Homeownership Preservation Foundation
Hotline for homeowners in danger of facing foreclosure to connect with a U.S. government-approved counselor. Call 888-995-HOPE (4673). (baltimoresun.com)
That's the key advice from housing counselors in the Baltimore area, who are trying to get struggling homeowners out from under ballooning mortgage payments.
"The moment they're falling behind, or think they're falling behind, call us immediately," said Ashidda Khalil, director of the Baltimore office of the Neighborhood Assistance Corp. of America, a nonprofit housing advocacy group. "Because for some reason they became afraid, and don't talk to the lender, it gets out of control."
There are several options for Marylanders, especially subprime borrowers, who housing counselors say have seen their monthly payments double in some cases as interest-only or adjustable-rate mortgages (ARMs) reset.
During the housing boom, many buyers stretched to buy a home before prices rose higher. They sought subprime mortgages because they meant lower payments in the first few years.
In addition, lenders made more subprime loans, typically at higher interest rates, to people with spotty credit records.
During 2004 and 2005, subprime loans nearly tripled, according to the Federal Reserve.
But now, as home values flatten or even decline and higher interest rates kick in, many homeowners can't keep up. Those with little or no equity are finding it tough to find new, fixed-rate loans or even sell the house for what they owe.
The state and some nonprofit organizations offer refinancing options for homeowners in dire situations. Many have eligibility requirements, such as income limits.
$1 billion in refinancing
Neighborhood Assistance, for instance, recently announced a commitment of $1 billion to refinance loans of people at risk of losing their homes.
To qualify, homeowners have to have subprime mortgages with interest rates of 10 percent or higher, Khalil said. They can refinance into a 30-year loan with a fixed rate that is 1 percent below market. So far, Khalil said the group has helped several Baltimore homeowners refinance and prevent foreclosure.
Neighborhood Housing Services of Baltimore Inc., a nonprofit group whose mission includes providing affordable housing, offered $1 million to refinance loans between January and May but then ran out of money because of the high demand.
The organization expects to have financing again in October.
Neighborhood Housing also offers emergency loans of up to $5,000 to help homeowners through tough months. The foreclosure process is quick in Maryland and the loans help people buy time, the group said.
"The idea is to forestall things for a limited amount of time and give homeowners time to fix the problem," said Felix Torres, the group's executive director.
"The customer that we were able to refinance basically had subprime loans they couldn't afford," Torres said. "In some cases they could barely afford it, and they were facing interest rates that were just going to push them over the edge."
Funding exhausted
The Community Assistance Network in Dundalk, too, recently exhausted its limited funding to help homeowners avoid delinquency and foreclosures, said Jon Brown, the group's sole housing counselor. The maximum grant is $450, and homeowners would have to provide the difference to bring payments current.
Marylanders also may qualify for the state's new Lifeline Refinance Mortgage program.
The loans, which have income limits, currently carry an interest rate of 6.5 percent.
Lifeline has about a dozen loans in the pipeline and has had about 600 inquiries since June. Officials expect to see an even bigger wave next year when more adjustable-rate mortgages reset, said Russell Thomas, a spokesman for the Department of Housing and Community Development, which administers the program.
Aside from financial help, nonprofit groups provide free counseling. Housing counselors can work with lenders to review options, such as lowering the interest rate.
"We're calling lenders and asking them to modify the loan so this person can continue to live in their home and raise their family," said Khalil of the Neighborhood Assistance. "We're pleading with lenders."
The St. Ambrose Housing Aid Center Inc. is on track this year to see nearly triple the amount of people it normally helps, from 700 to over 2,000 clients. The center said many homeowners had adjustable-rate loans and are now being squeezed. Others got into houses they couldn't afford. Many are coming in too late.
St. Ambrose will contact a homeowner's lender to see if better financing terms can be worked out. The center can also refer people to refinancing programs. It helps to sell the properties if it's too late to save them.
"Many of the families are already behind on their mortgage payments and the options become fewer and fewer," said Lisa Evans, deputy director of St. Ambrose. "People need to come in before their ARMs adjust and before their interest rates increase."
Where to seek help
Here are some places where homeowners struggling to make mortgage payments can turn to for help or further referrals:
• Lifeline Refinance Mortgage Program
A state program that provides refinancing. http://www.dhcd.state.md.us/Lifeline/ 877-462-7555
• St. Ambrose Housing Aid Center Inc.
Offers free counseling and referrals http://www.stambros.org/ 410-366-8550
• Neighborhood Housing Services of Baltimore
Provides emergency loans. It expects to have new funding available for refinancings in October. 410-327-1200
• Neighborhood Assistance Corp. of America
Offers a refinancing program and homeownership counseling. https://www.naca.com/index_main.jsp 410-783-0465
• Maryland attorney general's office
List of foreclosure counseling services http://www.oag.state.md.us/Consumer/foreclose.htm
• Homeownership Preservation Foundation
Hotline for homeowners in danger of facing foreclosure to connect with a U.S. government-approved counselor. Call 888-995-HOPE (4673). (baltimoresun.com)
Wednesday, May 9, 2007
Baltimore: There's New Help For Those Facing Foreclosure
BALTIMORE, MD - Thousands of Marylanders may face the prospect of losing their homes but are too embarrassed to tell anyone.
Political reporter Pat Warren has more on the risk they're taking and where they can go for help.
It's called the secret shame--a situation so pervasive it's under investigation on Capitol Hill: Homeowners facing foreclosures on subprime loans.
Subprime loans are marketed to people with poor credit histories and limited incomes, who may not otherwise qualify.
By calling 311, the city's non-emergency line, you can be connected to a help hotline. There's a toll-free number to call for help, 888-995-HOPE.
On May 19, there's a call to action for people who are in danger of foreclosure. It's at 1 East Mount Royal Avenue.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.
video: http://wjz.com/video/?id=27368@wjz.dayport.com)
Political reporter Pat Warren has more on the risk they're taking and where they can go for help.
It's called the secret shame--a situation so pervasive it's under investigation on Capitol Hill: Homeowners facing foreclosures on subprime loans.
Subprime loans are marketed to people with poor credit histories and limited incomes, who may not otherwise qualify.
By calling 311, the city's non-emergency line, you can be connected to a help hotline. There's a toll-free number to call for help, 888-995-HOPE.
On May 19, there's a call to action for people who are in danger of foreclosure. It's at 1 East Mount Royal Avenue.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.
video: http://wjz.com/video/?id=27368@wjz.dayport.com)
Monday, May 7, 2007
New Initiative Helps Maryland Homebuyers Avoid Foreclosure
ANNAPOLIS, Md. -- Statistics show Baltimore city sees nearly twice as many home foreclosures than Philadelphia.
To combat that, lawmakers have created a new initiative to help potential homebuyers make good decisions when choosing a mortgage lender.
According to Rep. Elijah Cummings, D-Maryland, people need to realize the history of some of the firms that are available.
Click here to find out more!
"For example, if there's a 60 percent foreclosure rate and you know that from the beginning, then you've got to talk to somebody and say, 'Is this the right thing for me to do?'" Cummings said.
Cummings has introduced legislation in the past to strengthen regulations in the subprime lending market and to mandate preloan counseling.
(wbaltv.com)
To combat that, lawmakers have created a new initiative to help potential homebuyers make good decisions when choosing a mortgage lender.
According to Rep. Elijah Cummings, D-Maryland, people need to realize the history of some of the firms that are available.
Click here to find out more!
"For example, if there's a 60 percent foreclosure rate and you know that from the beginning, then you've got to talk to somebody and say, 'Is this the right thing for me to do?'" Cummings said.
Cummings has introduced legislation in the past to strengthen regulations in the subprime lending market and to mandate preloan counseling.
(wbaltv.com)
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