Foreclosures Could Lessen with Baltimore Model
Wouldn't it be nice if someone reached out to help you refinance your high-interest mortgage?
That's what's happening in a Baltimore neighborhood that previously saw a record share of foreclosures.
According to a recent article in the New York Times, one-third of homeowners in the Belair-Edison area near East Baltimore lost their homes between 1993 and 2003.
But then the Belair-Edison Neighborhood Initiative stepped in.
With the slogan, "We Don't Buy Houses. We Help You Save Yours," the nonprofit agency's housing counselors reached out to residents of the lower- and middle-income neighborhood through the use of public records and street-level marketing.
The goal was to reach high-risk homeowners before they fall too far behind on their mortgage payments by offering free counseling and access to low-cost alternatives.
Homeowners are urged to come in when they first suspect they may be unable to pay their mortgage and when there is sufficient time to find options.
Homeowners Often Need an Advocate
Lenders are frequently reluctant or unwilling to modify home loans. In fact, according to a three-month study by Moody's Investors Service, only one percent of all loans adjusted were modified by the 16 large servicers of subprime mortgages.
Other homeowners have been victimized by various mortgage fraud schemes during the national mortgage crisis.
One Belair-Edison couple saw their mortgage payments rise from $800 to $1,181 per month. A counselor helped them refinance to a low-cost loan through the city. He also asked them to do their part by sticking to a budget free of lottery tickets and other non-necessities.
Community development has traditionally included counseling homeowners. In fact, the federal government approved $180 million for counseling programs in December in an effort to combat the foreclosure crisis.
New Homeowners Benefit Too
The Belair-Edison Neighborhood Initiative recently hosted a workshop for residents looking to buy a home for the first time. Those who attended the five-hour homeownership workshop and also met with a counselor one-on-one could qualify for up to $10,000 in aid for down payments and closing costs.
Looking for More? Filing Bankruptcy Information
Perhaps you too are struggling with a large increase in your adjustable rate mortgage and are having a hard time paying your other bills as well. What are the best options to avoid foreclosure for you and your family?
For some homeowners, filing bankruptcy could help you save your home in the face of a possible foreclosure. If you have overwhelming bills and have fallen behind on your mortgage payments, you should learn more about Chapter 13 bankruptcy.
If you're a homeowner with considerable equity and are not more than 90 days past due, there may be other options for you. Take action today by talking with a Total Bankruptcy sponsoring attorney. Our number is 1 (877) 349-1309 and you may also use the below form to be connected with a local bankruptcy attorney.
