Fall, 2008 HOMEOWNERSHIP PRESERVATION... WHERE DO WE TURN?? According to Freddie Mac, 6 in 10 families losing their homes don't know where to turn for guidance and advice. REALTORS® need to know where to direct their clients for these types of services to both prepare them for homeownership and advise them on methods of keeping their homes once they acquire them. In Prince George's County, the Housing Authority offers advice through its Homeownership Preservation Program. For more information on the services they provide, please contact: www.princegeorgescountyha.org Email: homeowner@co.pg.md.us TELE: (301) 883-HOME (4663) TTY: (301) 883-5428 HUD-certified housing counseling services in the area that may be helpful to families include: Greater Washington Urban League 6200 Baltimore Avenue, Suite 304 Riverdale, MD 20737 www.gwul.org (301) 985-9519 HomeFree-USA 3401 East-West Highway Hyattsville, MD 20782 www.homefreeusa.org (301) 891-8400 Housing Initiatives Partnership, Inc. (HIP) 6525 Belcrest Road, Suite 555 Hyattsville, MD 20782 www.hiphomes.org (301) 699-3835 Housing Options and Planning Enterprises, Inc. (HOPE) 6192 Oxon Hill Road, Suite 405 Oxon Hill, MD 20745 www.hopeinconline.com (301) 567-3330 Kairos Development Corporation 5601 Old Branch Avenue Camp Springs, MD 20748 www.kairosgroups.org (301) 899-1180 National Community Reinvestment Coalition (NCRC) www.ncrc.org or www.fairlending.com 1 (800) 475-NCRC (6272) National Consumer Law Center (NCLC) www.consumerlaw.org (202) 452-6252 Neighborhood Assistance Corporation of America (NACA) www.naca.com/index_main.jsp 1 (888) 302-NACA (6222) Roots of Mankind 4273 Branch Avenue, Suite 205 Oxon Hill, MD 20745 www.romkind.org (301) 899-6800 Sowing Empowerment and Economic Development, Inc. (SEED) 6201 Riverdale Road, Suite 200 Riverdale, MD 20737 www.seedinc.org (301) 458-9808 United Communities Against Poverty (UCAP) 1400 Doewood Lane Capitol Heights, MD 20743 www.ucappgc.org (301) 322-5700 Remember, financial counseling and education are essential keys to homeownership preservation. Maryland DHCD Programs to Help During the Mortgage Crisis On January 14, 2008 Governor Martin O'Malley announced new legislation, emergency regulations and initiatives to help thousands of Maryland homeowners at risk of losing their homes and to prevent future generations of homeowners losing their homes due to foreclosure following the sub-prime mortgage crisis facing our entire nation. These initiatives were created after the Homeownership Preservation Task Force developed by the Governor made recommendations on how to help Maryland homeowners, reform lending practices, lengthen the foreclosure process to make it fairer, and crack down on fraud and unscrupulous practices in the mortgage industry. The Maryland Department of Housing and Community Development has new programs that will help some homeowners refinance into an affordable mortgage or catch up on missed payments while negotiating a better outcome than foreclosure. The initiative includes the following programs: Lifeline Refinance Mortgage Homesaver Refinance Bridge to Hope Lifeline Refinance Mortgage program provides a refinancing option to Marylanders who may be facing difficulties after financing their homes with adjustable rate or other unfavorable mortgages, or with mortgages that no longer fit their financial situation. Borrower must be current on the mortgage with a credit score of 600. Homesaver Refinance Mortgage Program provides a refinancing option to Marylanders who have sub-prime or exotic mortgages and are experiencing difficulties as a result of mortgage default, low credit scores and/or a mortgage greater than the current value of their home. The Maryland Housing Fund (MHF), the State's mortgage insurance agency, is the exclusive mortgage insurer for this program. Mortgage(s) may not be more than two months past due at the time of application. "Bridge to Hope" Loan Program provides small gap loans at zero percent interest to homeowners facing difficulty, giving them time to get back on their feet or find a solution. Borrowers must be referred by a CDA-approved housing counseling agency. Borrowers must either be in delinquency or imminent potential of delinquency with no other viable alternatives available. The link to learn more about these programs is: www.mdhope.org HOME FROM WORK Home From Work is a housing opportunity program designed promoted by the National Association of REALTORS® to help people who can't afford to live close to their jobs. The program encourages REALTORS® to become advocates for expanding housing opportunities by teaching them how to promote workforce housing initiatives at the grassroots level. REALTORS® will be trained to work with employees to establish an employer assisted housing (EAH) benefit. According to the National Association of REALTORS, the goal of the Home From Work training program is to educate REALTORS® on the benefits of employer assisted housing and how to reach out to employees. Home From Work is a three-hour training class for REALTORS® and affiliate members. Continuing education credit is sometimes offered. Upon completion of the class, REALTORS® will be ready to approach employers, advocate for EAH programs, and help employers put their programs in place. For more information go to National Association of REALTORS® (Housing Opportunity Program) Sale and Land Softly Alternative (SALSA) A Partnership with The Coalition for Homeownership Preservation in Prince George's County and Prince George's County Association of REALTORS® (PGCAR) to Help Prevent Foreclosures The PGCAR Housing Affordability Committee in partnership with the Coalition of Homeownership Preservation of Prince George's County has adopted the "Sale and Land Softly Alternative (SALSA)" program. SALSA, structured after a successful program in Baltimore, partners qualified listing agents and brokers with home sellers facing foreclosure or those not able to afford their home and who simply want to: move on, sell their homes, and reap as much equity as possible from the transaction or limit their liability to the Investor. The program involves PGCAR members who agree (along with their broker) to list these properties (referred by an HUD-Approved Counselors) for an agreed upon commission rate. (A rate already established by the Coalition). Home sellers are then referred to these agents to list the property at the established rate. The sales agents who agree to participate in this program do so recognizing that it may take a great deal of time with very little, if any, profit. These agents are those with a truly benevolent nature. For further information about SALSA please contact Committee Chair, Donna Hurley - 240-737-5000. Maryland HOPE In August the state of Maryland announced the Home Owners Preserving Equity program (HOPE) under the Maryland Department of Housing and Community Development. HOPE was created to help homeowners avoid foreclosure, refinance, and switch their adjustable rate mortgages (ARM's) for more affordable fixed payment loans. HOPE offers loan counseling for borrowers and provides mortgage servicer incentives to restructure problem loans. The State has committed $2.5 million to the program and Prince George's County has agreed to $1.5 million. Homeowners who are having difficulties paying their mortgage are encouraged to seek help with refinancing and credit counseling through HOPE. Call the Maryland HOPE hotline at 1-877-462-7555 or visit www.MDHOPE.org. What is www.MDHomePrograms.com? The Maryland Association of REALTORS® has developed www.MDHomePrograms.com to help consumers and REALTORS® find ways to make housing more affordable. Visit www.MDHomePrograms.com to obtain a comprehensive index of relevant and innovative housing finance programs. To study tax incentives, down payment and closing cost assistance programs for home buyers that include HUD/FHA, Fannie Mae, Freddie Mac, Maryland Housing and Community Development (DHCD), local government and special initiatives from private lenders. Consumers can learn about selling and buying a home, financial literacy, predatory lending, foreclosure prevention and more. Add www.MDHomePrograms.com to your list of valuable contacts.