Home Ownership Supplement

Energy Efficient & Healthy Homes sponsored by

HOMEOWNERSHIP SUPPLEMENT / june 2012 H-1

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Money-Saving Cleaning Tips to Save Energy at Home Whether you love or hate spring cleaning, here’s some good news: Cleaning could save you money. Make the following tips part of your spring cleaning list and you’ll cut your energy costs by getting better performance from your appliances, exhaust fans, and lights.

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Dry clothes faster Clear lint from your clothes-dryer exhaust hose. Have a flexible hose? Replace it with smooth metal ducting to improve air flow, dry clothes faster, and reduce drying energy use.

Don’t make your fridge work so hard Clean dust from under your refrigerator, the front vent at the base, and any exposed coils at the back. Another tip: Make sure products aren’t blocking the fan vents inside the fridge and freezer.

Contact: Ron Burke | 202-561-4100 rburke@washingtoninformer.com

Clear the air Dust bathroom ceiling fan covers and fan blades. Clean dust and grease from the kitchen stove hood and exhaust fan.

Plug your home electronics into an advanced power strip

In Memoriam Dr. Calvin W. Rolark, Sr. Wilhelmina J. Rolark THE WASHINGTON INFORMER NEWSPAPER (ISSN#0741-9414) is published weekly on each Thursday.

Periodicals postage paid at Washington, D.C. and additional mailing offices. News and advertising deadline is Monday prior to publication. Announcements must be received two weeks prior to event. Copyright 2010

by The Washington Informer. All rights reserved. POSTMASTER: Send change of addresses to The Washington Informer, 3117 Martin Luther King, Jr. Ave., S.E. Washington, D.C. 20032. No part of this publication may be reproduced without written permission from the publisher. The Informer Newspaper cannot guarantee the return of photographs. Subscription rates are $45 per year, two years $60. Papers will be received not more than a week after publication. Make checks payable to: THE WASHINGTON INFORMER 3117 Martin Luther King, Jr. Ave., S.E Washington, D.C. 20032 Phone: 202 561-4100 Fax: 202 574-3785 news@washingtoninformer.com www.washingtoninformer.com

While you’re dusting your TV, computer, gaming equipment, and other home electronics, take a look at how they’re plugged in. You can stop overpaying to power these big energy users (many draw electricity even when off) by plugging them into an advanced power strip, which automatically cuts electricity to any idle equipment you choose.

PUBLISHER Denise Rolark Barnes STAFF

Use your bath fan

Denise W. Barnes, Editor Shantella Y. Sherman, Assistant Editor Ron Burke, Advertising/ Marketing Director Victor Holt, Photo Editor Lafayette Barnes, IV, Assistant Photo Editor John E. De Freitas, Sports Photo Editor Dorothy Rowley, Online Editor Paul Trantham, Circulation Manager Brian Young, Design & Layout AssureTech /www.scsworks.com, Webmaster Mable Neville, Bookkeeper Mickey Thompson, Social Sightings columnist Stacey Palmer, Social Media Specialist REPORTERS Eve Ferguson, Joy Freeman-Coulbary, Gale Horton Gay, Barrington Salmon, Charles E. Sutton ,James Wright, Joseph Young

Do you have mildew on bathroom ceilings? This is a sign of insufficient ventilation. If you have a bath fan, use it. If you need a fan, look for an ENERGY STAR® qualified model. These fans are very quiet and use little electricity. Be sure to vent bath fans to the outdoors, or you’ll risk moving your mildew problem to another part of the house or attic.

Keep bulbs and fixtures clean Dirt will absorb the light and reduce the efficiency. Another tip: Replace incandescent light bulbs with Compact fluorescent light bulbs (CFLs) and use up to 75% less energy for lighting.

Step outside Take a look at any accessible exterior vents, such as for the clothes dryer, centralheating system, water heater, kitchen-fan exhaust, or bath-fan exhaust. Clear them of any blockage or buildup of dust, webs, leaves, and lint.

Courtesy of The District of Columbia Sustainable Energy Utility (DC SEU) – www. dcseu.com

PHOTOGRAPHERS John E. De Freitas, Victor Holt, Roy Lewis, Khalid Naji-Allah, Shevry Lassiter

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Understanding HARP 2.0:

A Case Study

by Andrea Shearin Vice President Compliance & CRA Manager

M

y husband and I recently applied for a loan under the federal government’s revised Home Affordable Refinance Program, or HARP 2.0. HARP is a mortgage refinance program designed to help responsible homeowners take advantage of today’s low mortgage rates.

Unlike a traditional refinance, HARP allows homeowners to refinance their mortgages even though their homes’ values have fallen below their mortgage loan balances. This is known as being “underwater”.

We were aware that our county was one of those hit hardest by the housing downturn in the state of Maryland.

Yet, we were still stunned to learn that our house, for which we had made steady monthly payments for the past 8 years, was valued at $62 thousand less than what we paid for it, putting us approximately $20 thousand “underwater”.

With this information, we had cleared the first hurdle to being qualified for this government mortgage relief program.

Our lender told us that to be eligible for a HARP 2.0 refinance: zz Our mortgage must have been sold to Fannie Mae or Freddie Mac before May 31, 2009. This can be determined by calling: 1-800-7FANNIE or 1-800-FREDDIE or going online at www.fanniemae.com/ loanlookup or www. freddiemac.com/ mymortgage and using the lookup tools; zz We must be current with our mortgage payments and have no late payments in the last six months or no more than one late payment within the past 12 months. A late payment is defined as

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one that is more than 30 days overdue; and zz This must be our first refinance through HARP. Loans that were refinanced under an earlier version of HARP are ineligible to be refinanced again.

In addition to the eligibility requirements, our lender informed us that they were required to verify our income, employment and credit history.

We were advised that approximately 2 million homeowners were expected to refinance their mortgage loans through HARP 2.0, so to avoid any delays, it was important that we submit the requested documents as soon as possible.

Our lender discussed other obstacles that could delay the HARP process such as mortgage insurance and second mortgages. Borrowers with second mortgages have to get their second mortgage lender to agree to keep the second mortgage loan secondary to the HARP loan. Also, mortgages with borrower-paid mortgage insurance must maintain the current level of mortgage insurance. Unfortunately, mortgage loans with lender-paid mortgage insurance cannot be refinanced through the HARP 2.0 program.

Thankfully, we did not face any of these challenges and within 3 weeks we were approved for a HARP 2.0 loan with a lower interest rate, a lower monthly mortgage payment and a shortened repayment term.

Money Matter$

By Andrea Shearin

Industrial Bank Industrial Strong

www.industrial-bank.com

Member FDIC

Keeping the dream of home ownership alive and well

Fixed Rates First Time Home Buyer Programs Refinance Home Equity Line of Credit FHA Programs Reverse Mortgage 

Apply in person, online at www.industrial-bank.com, or contact our Home Mortgage Division at (202) 722-2097

If you believe you are eligible and want to put yourself in a better position to endure the housing market recovery, call your mortgage lender today and ask them to help you complete a HARP 2.0 application.

As always, Industrial Bank is ready to serve as your financial partner to support you as you look to invest in yourself, invest in your dreams, and invest in your future.

HOMEOWNERSHIP SUPPLEMENT / june 2012 H-3

Member FDIC

Money Matter$

Industrial Bank Industrial Strong

By Brian Faulcon www.industrial-bank.com

Member FDIC

7

Tips To Consider Before You Begin The Home Buying Process

DC Home Buyer's S $5000 Tax Credit

by: Brian Faulcon Assistant Vice President Industrial Bank

To be eligible for this credit, a buyer must:

1) Buy a home in the District of Columbia (one must not have owned a home in DC within one year of the qualified purchase); 2) Occupy the property as their principle residence: and 3) Meet the following income requirements: Single Filers- with up to $70,000 in modified Adjusted Gross Income 9AGI) received the benefit of the entire $5,000 credit. People with a modified AGI of between $70,000 and $90,000, the credit it reduced by $250 for every one thousand dollars over $70,000.

Joint Filers – with up to $110,000 in modified AGI receive the benefit of the entire $5,000 credit. Couples with a modified AGI of between $110,000 and $130,000 the credit is reduced by $250 for every one thousand dollars over $110,000.

The $5,000 is not a deduction, but a credit to be applied towards Federal Income Taxes (File Form 8859). If the entire credit cannot be used in the year of purchase, it can be carried over for up to five years.

ummer time is here and have you noticed that there’s an abundance of homes for sale?

Plus, when you listen to the news or radio, you hear that mortgage rates are at the lowest they have ever been in history; and the prices of homes have decreased dramatically.

YES, purchasing a home is still a great investment and now is the time to take advantage of the opportunities that are in front of you. The home buying process can seem overwhelming, so I would like to share 7 tips to consider before you begin;

Tip

#1: Commit to the home buying process. Make a decision to continue to the end.

Tip

DC Homestead Exemption To be eligible for the Homestead Exemption, a buyer must: 1) Own property in the District of Columbia; 2) Occupy the property as their principle residence: 3) Be subject to DC Income Taxation during the period the property gets the Homestead deduction.

The Homestead Exemption gives the homeowner two (2) important benefits: (1) $38,000 is deducted from the assessed value of the residence for purposes of calculating property taxes; and (2) the tax rate applies to the assessment is the lowest tax rate imposed by the DC government. To get the exemption, the homeowner must complete and file a Form FR-HD at the D.C. Department of Finance and Revenue. The exemption is not transferable and only applies to one home at a time. Property owners receive the homestead deduction on a prorated basis the first full month following the date filing of a property completed form. You will receive this form to complete at Settlement.

For more information on this, and other related topics, log onto www.dc.gov.

#2: Do not start the home buying process and then begin purchasing items for the house or large items on credit before settlement.

Tip

#3: Review or create a budget to see if you can reduce your current expenses, so that you can save, save, and save (more) money for Closing costs!

Closing costs in Maryland, DC and Virginia are among the highest in the country.

Tip

#4: Get a free credit report and analyze it. Most financial institutions prefer to see your

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middle credit score at 640 or greater. Make sure that everything on the credit report is yours. If you see any negative information on the report, try to work it out before you start the home buying process.

Tip

#5: If you are a first time home buyer, you should try to go to a first time homebuyer class or seminar. You will receive valuable information about the home buying process as well as learn if you qualify for any grants or settlement expense assistance.

Tip

#6: Find a Loan Officer that you feel comfortable with and get prequalified for a loan. Look up the financial institution and the Loan Officer on the Nationwide Mortgage License System (NMLS) which is a registry for the public to view information about the financial institution and the loan officer. The website is www.

N M L S C O N S U M E R AC CESS.ORG. All loan officers should provide you with their NMLS#.

Tip

#7: Find a Real Estate Agent and start the home buying process.

Referrals from family, friends, or your Loan Officer can help you find a good Real Estate Agent that you feel comfortable with.

Buying a home is still the American Dream. The more you prepare upfront to purchase your home, the easier the mortgage process will be!

As always, Industrial Bank is ready to serve as your financial partner to support you as you look to invest in yourself, invest in your dreams, and invest in your future.

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Industrial Bank

Industrial Strong

Since 1934

Keeping the dream of home ownership alive and well Fixed rates  First time home buyer programs  Refinance  Home Equity Line of Credit Apply in person or online at www.industrial-bank.com 

7 keys to get you into your new home.   

   

Review your personal credit report Analyze your current budget This is a “buyer’s market” (don’t rush to buy) Get pre-qualified for the amount of your desired monthly payment Home inspection is a must!

Don’t speculate on “fixer-uppers” until you know the cost of improvements Cash is king; save money (It is important to have cash reserves for emergencies)

Contact our Home Mortgage Division today at (202) 722-2097

MEMBER FDIC

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HOMEOWNERSHIP SUPPLEMENT / june 2012 H-5

Celebrating Homeownership Month: Creating Homeowners, Preserving Neighborhoods in Maryland Interest Rates on Maryland

Mortgage Late?

Don’t Wait!

You Have options. We Can Help. aCt noW before it’s too late!

For more information call

1•877•462•7555 or log onto

www.mdhope.org Martin O’Malley, Governor Anthony G. Brown, Lt. Governor

Raymond A. Skinner, Secretary Clarence J. Snuggs, Deputy Secretary

Mortgage Plan Loans at All-time Low

I

n commemoration of June as national homeownership month, the state is offering one of the lowest interest rates ever on its flagship mortgage assistance program.

At 4.75 percent, the rate that went into effect June 1 is one of the best deals in the 30-year history of the Maryland Mortgage Program, offering significant savings for hundreds of qualified homebuyers, says Raymond A. Skinner, Secretary of the Maryland Department of Housing and Community Development.

The country has recognized June as homeownership month since 2002. This year’s national theme, “Promoting and Protecting Homeownership,” carries particular resonance in the wake of one of the worst collapses of the housing market since the Great Depression.

However, state officials insist they will not allow the crisis to dampen the American dream of homeownership.

“In spite of the housing crisis and the high foreclosure rate, Governor Martin O’Malley feels homeownership is still good for our families and good for our communities,” Secretary Skinner says. “Over the long term, homeownership helps stabilize our neighborhoods; and for families, it builds equity, wealth, and helps create a legacy that families can pass on to their children.”

The Maryland Mortgage Program features a variety of low-interest, fixed-rate mortgage loan options for first-time homebuyers and to homebuyers in targeted neighborhoods in Baltimore City and Allegany, Caroline Dorchester, Garrett, Kent and Somerset counties.

The program is administered by the Department of Housing and Community Development and is funded by private capital raised through the agency’s ability to issue

mortgage revenue bonds. Program loans are administered by a network of over 50 private lending institutions across the state, enabling potential homebuyers to receive assistance through their local banks.

In addition, qualified homebuyers can receive a no-interest, deferred loan to help meet downpayment and settlement expenses through the state’s Downpayment and Settlement Expense Loan Program. The loan is not due until the refinance, sale or transfer of the home.

The first step for interested homebuyers is to call the agency’s Community Development Administration at 800 6387781 for a homebuyer’s kit.

Meanwhile, officials are seeing signs that the state housing market is improving, although they warn that the market remains very fragile.

RealtyTrac, an online service that monitors the housing market, has reported that foreclosures in Maryland dropped 11.5 percent during the first quarter of 2010, compared to the previous quarter and the state’s ranking improved from 10th highest in the country to 14th highest.

And the Maryland Association of Realtors says March home sales increased by 29.3 percent compared to last year, homes spent less time on the market and prices are beginning to gain traction.

“We can avoid many of the problems that precipitated the last crisis through a strong homebuyer education program,” says Secretary Skinner.

He noted that free homebuyer education is a part of every Maryland Mortgage Program loan.

Maryland Department of Housing and Community Development H-6 june 2012 / HOMEOWNERSHIP SUPPLEMENT

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Take the Right Step on the Path to Homeownership The Maryland Mortgage Program is the place to start!

Closing cost assistance of at least $5,000 and 30-year fixed rate mortgages.

800.638.7781 www.mmprogram.org Maryland Department of Housing and Community Development

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HOMEOWNERSHIP SUPPLEMENT / june 2012 H-7

Energy TIPS TO SAVE ENERGY TODAY

»» Install a programmable thermostat to lower utility bills and manage your heating and cooling systems efficiently.

»» Air dry dishes instead of using your dishwasher’s drying cycle. »» Turn things off when you are not in the room such as lights, TVs, entertainment systems, and your computer and monitor.

»» Plug home electronics, such as TVs and DVD players, into power strips; turn the power strips off when the equipment is not in use—TVs and DVDs in standby mode still use several watts of power.

»» Lower the thermostat on your water heater to 120°F. »» Take short showers instead of baths and use low-flow showerheads for additional energy savings.

»» Wash only full loads of dishes and clothes. »» Air dry clothes. »» Check to see that windows and doors are closed when heating or cooling your home.

»» Drive sensibly; aggressive driving such as speeding, and rapid acceleration and braking, wastes fuel.

»» Look for the ENERGY STAR® label on light bulbs, home appliances, electronics, and other products. ENERGY STAR products meet strict efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy

»» LED Lighting »» LEDs: A New Kind of Light. LED bulbs offer similar light quality to traditional incandescents, last 25 times as long, and use even less energy than CFLs. Choose ENERGY STARqualified LEDs for the highest quality and energy savings.

»» LED bulbs are rapidly expanding in household use. ENERGY STAR-qualified LEDs use only about 20%-25% of the energy and last up to 25 times longer than traditional incandescent bulbs. They come in a variety of colors, and some are dimmable or offer convenient features such as daylight and motion sensors.

»» In addition to standard screw-in bulbs, you’ll find LEDs in desk lamps, kitchen under-cabinet lighting, and even holiday light strings.

T

Efficiency Programs Save Maryland Residents Money

he Maryland Department of Housing and Community Development (DHCD) offers a range of energy efficiency programs that can help Maryland residents save money on their monthly energy bills. These programs support Governor Martin O’Malley’s EmPOWER Maryland initiative, which seeks to reduce Maryland’s energy consumption by 15 percent by 2015, and the Smart, Green & Growing initiative which strengthens our economy, protects our environment, and improves our quality of life. DHCD partners with the U.S. Department of Energy, the Maryland Energy Administration, local governments, nonprofit organizations, home improvement contractors, and energy suppliers to support our energy efficiency programs.

Programs offered by DHCD include the Weatherization Assistance Program and the EmPOWER Maryland Low Income Energy Efficiency Program, which provide grants to low- to moderate-income households, as well as the Be SMART (Save Money And Resources Today) Program which provides low-interest loans and rebates to Maryland residents. All of these energy efficiency programs generally require applicants to undergo an energy audit to receive assistance. This audit will be conducted by DHCD’s local partner agencies or a DHCDapproved contractor. The audit will assess the current state of the property and will prioritize the most effective ways to reduce your energy costs while increasing comfort. Depending on the specific program, there may also be certain income restrictions and/or credit requirements.

Once the audit is completed, the energy efficiency improvements recommended through the audit will be com-

pleted through the local partner agency or an approved contractor. All of DHCD’s programs support improvements that address issues including: air infiltration improvements and duct-sealing; insulation in attics, floors and walls; hot water system improvements; lighting retrofits; furnace cleaning, tuning and safety repairs and burner repair or replacement, and; additional health and safety items to improve energy efficiency.

Additionally, the Be SMART program offers a loan program that may be used for appliance upgrades and/or replacement of heating and cooling systems, windows, doors, insulation, appliances, and other qualified ENERGY STAR improvements including, but not limited to air source heat pumps, central air conditioning systems, boilers, water heaters, refrigerators, ceiling fans, programmable thermostats, and ventilating fans. Be SMART program participants may also be eligible for additional rebates related to certain appliance upgrades.

All of DHCD’s energy efficiency programs save Marylanders money and help them achieve a higher quality of life – Marylanders like Barry Wilhite. A resident of the Mayo Peninsula of Anne Arundel County, Mr. Wilhite has lived in his home since age seven, assuming ownership after the death of his parents. After a health issue that caused him to have both his legs amputated, Mr. Wilhite was struggling to pay his heating oil bills.

Some helpful neighbors did some research and suggested that DHCD’s Weatherization Assistance Program might be able to help.

After an energy audit, local, approved contractors began extensive upgrades to Mr. Wilhite’s home. The attic received new insulation and a

H-8 june 2012 / HOMEOWNERSHIP SUPPLEMENT

special covering. Covers were added to the fireplace. Windows were caulked, and panes covered in cardboard were replaced. Old, inoperable heating vents were replaced. Upon installation of a carbon dioxide monitor in the basement, a large crack was found in the original oil furnace. The furnace was subsequently replaced with a smaller and more energy-efficient electric model. All the work was completed before winter arrived which was perfect timing for Mr. Wilhite. As a double-amputee, Mr. Wilhite’s body regulates its temperature a little bit differently than most, so good, reliable home heating and cooling is a must.

After the energy efficiency improvements were in place, Mr. Wilhite immediately saw substantial savings to his home energy bills. Once struggling to pay for heating oil, Mr Wilhite no longer worries about that with his upgraded electric heat pump and system. Additionally, once the improvements to the home were completed, Mr. Wilhite was able to rent out his basement as an apartment, which has helped him manage his mortgage payments and ensure that he remains in the home he loves –next-door to the helpful neighbors he adores.

Whether you are struggling with your energy bills, looking to reduce your monthly energy costs, or seeking sustainable energy solutions for your home, DHCD and the State of Maryland may be able to help you and your family. Visit the “Improving A Home” section of the DHCD website – http://www. mdhousing.org – to learn more about our energy efficiency programs and to find the local partner agency or approved contractors in your area.

You can also call DHCD directly at 1-800-638-7781 for additional information and to determine which program is the best fit for you or visit www.mdhousing.org

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Money& Energy @ Home

Saving

by Ted Trabue, Managing Director, DC SEU

T

he average energy bill for a single family home in the U.S. is approximately $2,200 per year. If you were to add up all the hidden air leaks in the average home, they can equal a hole the size of a window that’s open 365 days a year. The potential for lowering energy costs in your home is huge and the District of Columbia Sustainable Energy Utility (DC SEU) is committed to helping you find ways to do just that.

This spring, the DC SEU launched the DC Home Performance with ENERGY STAR® program designed to help District homeowners identify the areas in your home where you can make energy-saving home improvements. Improving the energy efficiency of your home through DC Home Performance can help make your home more comfortable—and save you up to 30% on your energy bills. With a $500 incentive available for homeowners who complete qualifying work under the program, the DC Home Performance program is an opportunity you don’t want to miss.

A typical DC Home Performance with ENERGY STAR home improvement project begins with a comprehensive energy audit of your home conducted by a certified Home Performance with ENERGY STAR contractor. Using a number of diagnostic tests, your contractor will provide you with a home energy audit report. This comprehensive report provides you with recommended energy-saving home improvements specific to your home, along with the associated energy savings you’ll see from making those improvements. You will then work with your contractor to decide which improvements make the best sense for your home and budget, and your contractor will

perform the work.

Sometimes, the costs of making your home more energy efficient can put those improvements out of reach of some homeowners.

To help homeowners overcome the cost barriers, the DC SEU is working with local banks to provide financing that can make the investment possible and affordable. The DC SEU has partnered with Industrial Bank to offer a special program through the Federal Home Loan Bank of Atlanta, the Energy Efficiency and Weatherization Program. This loan program provides forgivable loan funds of up to $12,000 for home rehabilitation to eligible homeowners. The DC SEU has also partnered with CommonWealth One Federal Credit Union’s Energy Saver Loan program to offer DC residents loans with reasonable interest rates for energy projects under the DC Home Performance program. These financing options can go a long way in helping you make energy-saving improvements to your home without breaking your bank.

DC Home Performance with ENERGY STAR is a great way to save energy, save money, and go green in your home. For more information on the DC SEU and our programs and services, visit www.dcseu.com or call toll-free at 855-MY-DCSEU (855-693-2738).

The DC SEU was established by the Clean and Affordable Energy Act (CAEA) of 2008 and is a project of the Sustainable Energy Partnership, led by the Vermont Energy Investment Corporation and eight local partners: George L. Nichols and Associates; Groundswell; the Institute for Market Transformation; L.S. Caldwell and Associates; PEER Consultants; PES Group; Skyline Innovations; and Taurus Development Group.

For more information, visit www.DCSEU.com.

WANT To START SAviNG moNEYAND ENERGY iN YouR HomE ToDAY? Take advantage of incentives and financing options from the DC Home Performance with ENERGY STAR® program by completing energy-efficient improvements through a DC Home Performance participating contractor.

To get started, call 888-MY-DCSEU or visit www.dcseu.com.

a new kind of utility WWW.DCSEu.Com/mYDCSEu

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HOMEOWNERSHIP SUPPLEMENT / june 2012 H-9

Facing Foreclosure

or Underwater?

Don’t Fear the Solution

By Maryland Attorney General Doug Gansler

Y

ou’ve been victimized by an unscrupulous mortgage broker or a bank/mortgage servicer.

Lenders made millions on fees and when they got in trouble, they just ignored your situation. You’re not alone. Thousands of Maryland families are desperate to leave their personal housing crisis behind

and resume their quest for the American Dream. For many, that possibility just became more real.

So, why trust the banks now?

The truth is you don’t have to but, you should at least open

their mail. A solution to your problem just might be inside the next envelope. It’s already started. Over the next several months, families across Maryland will be getting letters from their mortgage lender that might be the best news they’ve seen in quite a while.

Don’t ignore that letter.

Open and read it carefully and then, respond. Also, I highly recommend that you discuss the letter with a free nonprofit housing counselor or a lawyer of your choice (See how below.). But, whatever you do, Don’t Fear the Solution. The rules of the game have changed in your favor if you qualify.

Under the recent $26 billion Mortgage Servicing Settlement, Maryland extracted nearly $1 billion worth of benefits and assistance that the banks must now deliver to borrowers or pay a hefty penalty. The mortgage servicing companies are now bound by a federal court and a court-appointed monitor to do the right thing and do it fast. That includes treating borrowers like valued customers instead of liabilities.

The lion’s share of that money must go directly to homeowners who are in danger of foreclosure or, underwater with their mortgages or, were foreclosed upon between January 1, 2008 and December 31, 2011. The relief comes in different forms and each option will apply differently to different borrowers. Under the

H-10 june 2012 / HOMEOWNERSHIP SUPPLEMENT

settlement these lenders must provide large numbers of customers either lower interest rates, loan modifications or principle reductions.

Some families who’ve lost homes to foreclosure may qualify for a cash payment of up to $2,000. In this case, a letter and then a check would come from a claims administrator – not the bank – with no strings attached. You can take it and still sue the lender if you have grounds to do so.

The banks must reach out to borrowers. But you shouldn’t wait for them to act. Call the bank now. Get a free nonprofit housing counselor or talk to the one you have, again.

This settlement doesn’t apply to everyone facing mortgage problems. You must pay or have paid your mortgage to one of these companies: Ally/ GMAC, Bank of America (Including Countrywide), JPMorgan Chase (Including WaMu) and Wells Fargo (Including Wachovia). And, you must qualify for the relief that is being offered. Settlements with other lenders are in the works.

For a schedule of Free Foreclosure Workshops, find a free nonprofit housing counselor or phone numbers for each bank, visit our web site at http:// www.oag.state.md.us/ or call the Office of the Attorney General at 410-576-6300.

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Homeowner Rescues on the Way:

Good News for All Americans

By Lanta Evans-Motte, M.B.A.

M

any Americans would welcome a major housing recovery, as home equity is the way most Americans build wealth. However, several factors seem to be working against that trend, including a less than robust job market, tighter mortgage lending standards, and the large number of homeowners who owe more on their mortgage than their homes are worth. More than 30% of homeowners (nearly 16 million), were underwater on their mortgage during the first quarter of 2012, according to a recent report by Zillow.

The overall economy has been improving since the 2007-2008 meltdown, albeit slowly, with record corporate profits, stable retail sales, and stabilizing unemployment trends. Optimists also point to several positive housing trends, including lower housing inventories, historically low interest rates, and better housing affordability (lower priced properties are easier to qualify for).

Additional encouraging news is that a number of housingrelated initiatives have recently been launched to help homeowners prevent foreclosure, keep homes occupied and help sustain stable communities: zz In February 2012, President zz Obama announced a refinancing plan to help homeowners refinance mortgages backed by the FHA, if they are current on their mortgages. Buyers could save about $3000 annually. This is in addition to the Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP), which are foreclosure prevention programs launched in previous years. zz Also in February 2012, an historic $25 billion settlement was reached

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between the federal government, 49 state attorney generals, and the country’s five largest loan servicers: Bank of America; Citibank; Ally Bank (GMAC), JPMorganChase (WaMu); and Wells Fargo (Wachovia). This settlement is the largest multistate settlement since the Tobacco Settlement in 1998. The agreement was reached after extensive investigations into mortgage fraud, foreclosure abuses, and mortgage servicing practices such as “robo-signing.” The settlement provides benefits to borrowers whose loans are owned by the settling banks, but has a three-year timeline for implementation. For borrowers with loans owned or serviced by the five big banks, the settlement may help millions of homeowners remain in their homes through enhanced loss mitigation programs, such as interest rate reductions, loan modifications (including principal reductions), forbearance plans, and short sales (where homes are sold for less than the mortgage balance).

In April 2012, the Federal Housing Finance Agency (FHFA) directed Freddie Mac and Fannie Mae to streamline several homeowner retention programs to help homeowners who owe more than their home is worth. Enhancements will include short sales, deedsin-lieu and deeds-for-lease, which are efforts designed to help homeowners avoid foreclosure. The first phase will begin in June 2012, with additional enhancements expected by the end of 2012. The new timelines require

that mortgage servicers respond to requests for short sales within 30 calendar days from receipt of a short sale offer; and then communicate final decisions to the borrower within 60 calendar days of receipt of the offer and complete borrower response package. FHFA is the regulator for Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks, which provide more than $5.7 trillion in funding for the U.S. mortgage markets and financial institutions.

zz Since January 2012, several banks have announced relocation incentive programs to help underwater homeowners leave their property.

Programs have been reported to offer from $2,500 to $30,000 in relocation assistance, which is generally at the discretion of the lender. Some lenders prefer these programs to foreclosures, as the process is generally more orderly and the home is often left in better condition by exiting homeowners.

Other federal programs, such as Home Affordable Foreclosure Alternatives (HAFA) may also offer relocation incentives for short sales.

zz For more information on the Mortgage Servicing Settlement, visit: www.

NationalForeclosureSettlement.com; or your state Attorney General’s website. zz For more information on Fannie Mae & Freddie Mac short sales, visit, www.fhfa. gov. zz For more information on relocation incentives, contact your lender or servicer.

Reports of scammers trying to take advantage of vulnerable homeowners have already surfaced in several states. Be sure to take appropriate steps to safeguard your personal information, your home, and your money, and beware of unsolicited phone calls, emails and mailings.

benefit if the aforementioned homeowner initiatives are successful. As housing prices improve, homeowner equity also generally increases, along with real and perceived wealth amongst homeowners. A housing rebound would also likely be good news for the financial markets, as the economy generally responds well to a robust housing market which typically contributes to thousands of jobs, income, and buying power.

Information provided is not intended as specific tax, legal, or financial recommendations for any person. Lanta Evans-Motte, MBA, is a business consultant and independent financial advisor affiliated with Raymond James Financial Services, Inc., Member FINRA/SIPC; 4061 Powder Mill Road, Suite 705, Calverton, MD 20705. Office: 301-459-2484.

Getting Help and Housing Recovery?

Additional Information Whether you need help perHUD-approved housing sonally or know someone who counselors are available (often does, many Americans stand to free) to assist homeowners better understand their options, and help determine if they qualify for programs, remedies, or asLanta Evans-Motte, MBA Financial Advisor sistance (www.hud.gov). Working with experienced counselors may result in better outcomes for homeowners facing difficulties. zz For more information on HAMP, HARP, or HAFA visit www. makinghomeaffordable.gov.

4061 Powder Mill Road, Ste. 705, Beltsville, MD 20705 Ofce: 301-459-2484 • Branch: 301-595-8600 lanta.evans@raymondjames.com www.raymondjames.com/lantaevans Raymond James Financial Services, Inc., member FINRA/SIPC

HOMEOWNERSHIP SUPPLEMENT / june 2012 H-11

Healthy Homes:

Green Efficiency

By Misty Brown WI Staff Writer

T

his year has been designated as the “International Year of Sustainable Energy for All” by the United Nations. And in keeping with the revered organization, here are some simple and healthy green tips that are easy and inexpensive.

BUY TOOLS THAT LAST: “Always buy high-quality tools from reputable stores. My favorite brand is Dewalt – the leader in contractor power tools including cordless drills, woodworking tools and professional power tools. Look for those with lifetime warranties. You have to send in your warranty forms. I still use the same hammer of 25 years. Also, I have my circle saw for cutting all different angles and my cable saw for ripping anything,” says builder Reginald James, the owner of Sweet Mango Café.

BUY EFFICIENT APPLIANCES:: They are classified as Energy Star. Toilets are given the Water Sense label. You can get rebates and they lower the cost SOLID WOOD FURNIof your utility bills.

TURE: Antiques represent a previous era. Don’t discard OLD TOOTHBRUSHES: them. Place them in the guest “Superb cleaning tools for any bedrooms or basement. The masmall surface, tracks or edges jority of antiques are made from such as door frames, moldings, mahogany, cherry, and teak, the windowsills, stovetop burners most expensive. Restore your and knobs, blender bases, refriggrandmother’s rattan or caneerator door handles and rubber seat furniture. Bamboo furniture sealers,” says Dr. Dianne Whit- from that era is highly sought-affield-Locke, D.D.S. ter by antique dealers. Some are worth the investment. Purchase LOOK FOR POISONOUS oak and pine furnishings. Avoid PLANTS: “Many homes lo- pressed wood furniture, it’s cated near wooded areas might made from compacted sawdust have poisonous plants [poison and shavings and treated with ivy, oak and sumac]. Look for formaldehyde, which is toxic. plants with three leaves that’s their customary identification. A CARPETS: Studies have provreaction can occur immediately en that carpets are major health or take up to 25 days to develop. hazards, unless made from natuKnow your vines. …Wear gloves ral fibers [bamboo, hemp, and when cutting any vines or pull- grasses]. Remove old carpets ing any weeds. Even household from the bedrooms. Nowadays, plants can be toxic, if digested, homebuilders install hardwood especially English Ivy, Poinset- floors in all rooms, and put syntia, elephant ears, spider plants thetic or natural fiber carpets in and oleander,” says Cherokee the bedrooms. Developers and descendant, Antonio Carpen- home buyers diligently look for ter, lodge keeper of the Ancient certain carpet patterns because Wisdom Teachings Spiritual they know the floors underneath Lodge. are made from solid oak that’s priceless.

GLASS CONTAINERS: Michael Lawrence, owner of Ja- WHITE BATH/BED LINmaican Joe’s Restaurant prefers EN: Free of dyes and chemicals. to recycle or reuse food jars and Turkish towels are the best and bottles – they’re eco-friendly most expensive. Look for tightproducts. “Glass containers are ly woven items. Buy organic, if pricey. The best and most beau- possible. Water conservationists tiful decanters are alcohol bot- advocate recycling your towels tles. My favorites are the Tequila and sheets. Change pillowcases [bottles]. Their labels peel off often. Recycle your towels for a week with continuous usage. easily, with a quick soak.”

A Thoroughly

By D.R. Barnes WI Staff Writer

W

ho has time to clean the house anymore?

And, who can manage the demands of life and clean with any kind of regularity reminiscent of the Saturday morning ritual once required in nearly every household decades ago? Plus, with so many choices available now for household cleaning products that are lined up on store shelves, it’s timeconsuming just trying to figure out which are the best ones to use.

Where are the days when Mr. Clean with his bald-head, white T-shirt and buffed arms guaranteed that he and anyone who would take him home could tackle every mess in the house?

Over the years, manufacturers of household cleaning products have successfully thrown Mr. Clean from his throne, while creating mass confusion for consumers who can’t find enough room to store every product they purchase, let alone use them all.

This hodgepodge of plastic bottles filled with hard to pronounce chemicals that are potentially harmful to the environment and to your health have given rise to a “Back to the Future” cleaning revolution.

Homeowners are slowly tossing these products aside and replacing them with items that could be included in a great salad or a refreshing beverage or the ones grandma use to use. And the convenience of using many of these natural products makes cleaning an adventure and not a chore.

Lemons, vinegar, essential

oils, baking soda, toothpaste, salt and bread, to name a few, have joined the list of popular non-toxic natural household cleaners proven to be effective for a variety of chores. Consider using these when tackling those common household tasks like the ones listed below:

LEMONS Countertops: Dip the cut side of a lemon half in baking soda to tackle countertops; wipe with a wet sponge and dry. Don’t use on delicate stone, like marble, or stainless steel [it may cause discoloration].

Faucets: Combat lime scale by rubbing lemon juice onto the taps and letting it sit overnight.

Wipe with a damp cloth.

Garbage disposal: Cut a lemon in half, and then run both pieces through the disposal.

“The lemon cleans it and makes it smell great,” says Linda Mason Hunter, co-author of the book, Green Clean [$13.50, amazon. com].

Laundry: To brighten whites, add 1/2 cup lemon juice to the rinse cycle for a normal-size load.

wonderful to put on a cotton ball or mixed with distilled water and sprayed in the air,” she says.

Handy-Kendi also recommends lemon, orange, cinnamon, lavender, and rose oils to help purify and freshen the home. For those who like a woodsy aroma, she recommends sandalwood or Blend of Thieves, made from clove, lemon, cinnamon, rosemary, and eucalyptus oils, which cleanse the air while helping to calm the mind.

VINEGAR Vinegar is considered an environmentally friendly and economical cleaning alternative that’s effective for killing most mold, bacteria and germs due to its level of acidity. Tips for cleaning with vinegar recommended by www.vinegartips.com include: zz Make your own scouring cleanser by combining 1/4-cup baking soda with 1-tablespoon liquid detergent. Add just enough white distilled vinegar to give it a thick but creamy texture.

ESSENTIAL OILS “I have used several essential oils as air fresheners, but it is zz Clean the microwave by mixing 1/2 cup white important to use the purest of distilled vinegar and 1/2 oils such as Young Living Oils cup water in a microwave[YLO] which are 100 percent safe bowl. Bring it to a therapeutic grade essential oils,” rolling boil inside the says Ayo Handy-Kendi, a holistic microwave. Baked-on food practitioner, and the founder and will be loosened, and odors CEO of Positiveenergyworks, will disappear. Wipe clean.

Inc. (www.breathepositive.com).

She cautions consumers to zz Easily clean your mini avoid essential oils that contain blinds by wearing a pair alcohol or that can be heated over charcoal. Her favorite blend is called Purification, which “is See clean on Page 13

H-12 june 2012 / HOMEOWNERSHIP SUPPLEMENT

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Clean Home clean continued from Page 12 of white cotton gloves.

Dip gloved fingers into a solution of equal parts of white vinegar and warm tap water, and run your fingers across both sides of each blind.

vinegar outside doorways and windowsills, around appliances and wherever you find pests coming in. zz Kill germs all around the bathroom with a spray of full-strength white distilled vinegar. Wipe clean with a damp cloth.

zz Discourage ants by spraying zz Soak a sponge or loofah undiluted white distilled

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overnight in a strong white distilled vinegar and water solution to remove dirt and slime. Rinse several times with cold water and let air dry [in the sun if possible].

BORAX AND HYDROGEN PEROXIDE Shawna Lois Malone, founder and CEO, Three60 World, Inc., uses hydrogen peroxide as an al-

ternative to chlorine and colorsafe bleach. “It is very useful in brightening clothes, lifting stains and purifying the laundry,” she says. Malone also recommends, “old-fashion Borax” for washing laundry. “It gives a boost to laundry detergent by adding extra scrubbing power. It also helps to get out stains,” she adds. She suggests using hydrogen peroxide in a spray bottle with water as a

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household cleaning agent, or adding essential oils or citrus peels to give it that fresh clean scent.

There are many inexpensive, healthy and safe alternatives to the commonly used harsh chemicals on the market today. Make your household cleaning chores a green and clean adventure by exploring these options and more.

Feel free to visit The Washington Informer on facebook and share some of your tips.

Healthy Homes: What You Don’t See Can Hurt You

By Barrington M. Salmon WI Staff Writer

W

hen a person’s house is dusty or dirty, that person will generally grab a mop and pail, some disinfectant or some soap and scour the floors, walls and other areas.

While rooms and other parts of the house may have a pleasant smell or look clean, there are microscopic organisms, bacteria and other particles that remain and which could make a person deathly ill.

“There may be wind-blown organisms, pollen, automobile exhaust, dead skin, hair and fecal matter in mice and rat urine that may be present,” said Gregory Rynard Hunter, owner of Hunter Cleaning Services in Takoma Park, Md., which offers intensive cleaning services to a range of clients locally and elsewhere.

And if one or more of the occupants smoke, Hunter said, the presence of particles that can lead to serious health challenges, and even death, ratchet up exponentially.

Most often, Hunter said, he is

called on to provide his services to seniors. Usually the elderly spend as much as 90 percent of their time indoors which exposes them to a range of maladies.

“The elderly and retired are not really cleaning their houses,” he explained. “The average home is not regularly maintained. That means an increase of pollution.

Younger people don’t spend as much time at home so they are less likely to be affected. There’s no one addressing the environment people are recovering in. I disinfect the entire house and remove particulate matter that’s in the air.”

Hunter, who has been in this business for 20 years, said he recalls cleaning a house in which the occupants smoked for 45 years.

“The stench was unbearable; you could smell it from the street,” he said.

He said cigarette smoke is sticky and it attaches itself to the walls and furniture, permeate clothes and with dust, form layer on top of layer on objects.

Kitchen grease is another source of contaminants.

“Airborne grease lines the walls and contaminants stick,” Hunter said.

When someone enters the living space of an elderly person, there’s much more there than just “an old person’s smell,” he said. ‘‘It’s a progression of contamination and the degrading of materials and carbonate being released in the air,” said Hunter.

“People take in contaminants through their skin, and lungs, for example, and this toxic matter includes fiberglass, asbestos and titanium, gold and silver particles.

The body can’t break these things down and it causes … damage to cells; it can cause cell death which can lead to organ failure.”

His job, Hunter said, is to lower the amount of toxins floating in the air in a person’s living space and thus reduce the likelihood of relapses, heart attacks and strokes.

Hunter has at his disposal, a range of products with which to disinfect a house or living space. These products erode and degrade contaminants as he cleans every surface, windows, walls, carpets, furniture, under furniture, inside cabinets

and elsewhere.

“If workers are refining hardwood doors, for example, the sawdust can cause inflammation and blood disorders. Indoor air pollution can be 10 times worse,” he said. Someone may have headaches, a runny nose or sore throat and not know that these have been triggered by any number of particulates.

Hunter recalls tackling the problem at one home and he said he vacuumed for four days and four nights, cleaning the ceiling, walls, floors and other surfaces.

“When I was finished, there was more than one pound in the vacuum bag. People are not cognizant that they’re living in a toxic environment,” he said.

He said dust particles have a magnetic charge and once they enter the body. They interact with blood platelets which have no charge. The dust particles turn capillaries into a magnet which causes the platelets to start sticking to each other. The result can be blood clots which block blood vessels and lead to strokes, heart attacks and other problems.

Hunter said the various ele-

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ments of his intensive cleaning turn homes into “medicinal spaces.”

“I am an active participant in medical healing,” he said with a laugh. “I will detect an odor from the air or stuck on a wall.”

Pollution, such as mold, thrives in dark or dimly lit places. So Hunter uses ultra-violet light, light sticks, and sunlight. He said he’ll expose and clean off reflective surfaces so that the light or sunlight can bounce around and brighten up the space.

“Light affects how energy is absorbed,” said Hunter. “I make a conscious effort to make the space actually work as medicine.

I discovered this four years ago.

This has a physical and psychological effect on people. It can turn around depression by how I clean the house and more light means a stronger immune system.”

For more information, Gregory Hunter can be contacted at 301-5851641 or 240-899-4847 and at www. huntercleaningservices.com.

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Reduce Outdoor Water Usage with Xeriscaping

By Gale Horton Gay WI Staff Writer

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Get Solar In Your Home!

By Robert Robinson DC SUN

Why Solar Energy?

Sunlight can produce electricity (solar photovoltaics, or pv) saving 20% - 100% of what you pay for electricity.

And, it can heat your water and save about 40% of what you spend on natural gas to heat water.

Is Solar Is Right for Me? The proof is your roof: if your roof is flat; south, or east or west and in good condition, solar may be right for you. If your roof is steeply pitched, north-facing and made of slate or tile, solar may not be cost-effective.

How Much Can I Save?

The more roof space, the more solar pv: for every 100 square feet of open roof (no skylights or chimneys) you can install solar that generates about 1.5 kiloWatts (“kW”) per hour.

Solar savings depend on your home energy consumption: if you consume over 10,000 kW per year you may need to install 3 kW or more to save 50% or more on what you pay for electricity now.

For example, if you use 8,000 kW per year and install a 3kW system, you generate savings of 60%-70%; with 4kW you generate savings of 80%-90%.

Conservation and efficiency increase your solar production: solar homes that are weatherized and use efficient tend to save 25% for every 100 sq. ft. of solar, less efficient solar homes may only save 15% per 100 sq. ft of solar.

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Solar is More Affordable Than Ever?

Solar photovoltaic costs are down from $8 per watt installed to less than $5 per watt today -- almost half what they were three years ago!

Tax Credits, Local Incentives and Financing Make Installation Cheaper Still!

Item

Cost

Subtotal

3 kW Solar System @ $5000 per kW, installed

$15000

less 30% federal tax credit

-$4500

$10,500

DCʼs REIP rebate

-$4500

$6000

SRECs sold up-front for cash

-$3000

$3000

Actual Cost

$3000

A 3 kW system saving $1000 per year on electricity costs means the average return-on-investment is 3 years or less! You’ll be saving 100% of the cost of the electricity you produce for the life of the solar -- more than 25 years.

Need More Help: Contact DC’s Solar Coops DC SUN represents DC’s 12 neighborhood solar coops.

Our mission is to make solar accessible to all in DC -- and affordable. Go to: DCSUN. org. We’ll present to your Civic Association, ANC, church or community group. It’s free!

How to Get Started Complete the preapplication form ASAP on the DC Department of the Environment website: http://ddoe. dc.gov/node/22512 if you have questions, email: olayinka.kolawole@ dc.gov or Daniel.White2@ dc.gov Get Estimates From 3 Contractors DDOE’s list of approved contractors is a good starting point: http://ddoe.dc.gov/publication/district-area-renewable-energ y-contractorsand-installers

DC SUN Is Making Solar Available to Anyone -- Even Without a Roof The Community Renewables Act of 2012 will permit anyone to invest in a solar array and get credit for its electricity production on their monthly bill. https://sites.google.com/ site/dcsolarunitedneighborhoods/key-issues-and-committees/community-renewableenergy-act-of-2012 Please join us at the DCSolarFlare on Saturday, Juney 16, from 9:00 am to 4:30 pm at H.D. Woodson High School, 540-55th St, NE in Ward 7.

More questions e-mail me at: robrobin@me.com

he American Dream of homeownership often includes a white picket fence and a picture-perfect landscape that includes a lush green lawn and a burst of color – pink azalea and hydrangea bushes along with assorted flora and foliage that complement the house’s exterior.

That’s a pretty picture but rarely the reality – yard care is often labor intensive, costly and can demand a significant amount of natural resources to maintain.

However, there’s a philosophy in the landscaping universe called xeriscaping that’s designed to minimize water usage, and save homeowners tons of money on their water bills. Many of the practices in xeriscaping result in less labor and produce an attractive and healthy yard that becomes the envy of the neighborhood.

While common misconceptions about xeriscaping include the impression that these yards will be dull and lack color, experts say it’s not all cactus and yucca in a spread of gravel.

Done properly, a xeriscape yard can have a wide assortment of plants that include trees, shrubs, ground covers and flowering annuals and perennials. Yards can have as much robust color as the homeowner chooses. The advantage: these yards require less water and less maintenance.

“A well planned xeriscape not only uses less water, it’s attractive [and] colorful and utilizes a variety of landscape forms and textures,” according to the Maryland Cooperative Extension Service’s website.

Ways to shrink one’s lawn include expanding planting beds, using non-plant materials such as bricks, stone and wood in landscape design and incorporating more ground cover.

The Maryland Cooperative Extension Service offers the following outdoor water saving tips for homeowners: plant droughttolerant plants, only water when

HOMEOWNERSHIP SUPPLEMENT / june 2012 H-15

necessary, water slowly and deeply, water in the morning, prevent water from running off landscape, repair leading hoses and sprinklers and turn off automatic sprinklers when it’s raining. They also advise mowing lawns high, controlling weeds, mulching plant beds, planting trees and shrubs together and planting in the spring and fall when temperatures are low and water loss is reduced.

Those who would like to see their water bills drop and reduce time spent caring for the yard might want to consider reducing the size of their lawn. While the lawn is a great place for children to perform cartwheels and families to enjoy picnics, it devours resources.

“Unfortunately a lawn is the most maintenance intensive part of a landscape and usually requires more water per square foot of area than any other type of landscape landing,” according to a Maryland Cooperative Extension Service publication on xeriscaping.

The Maryland Cooperative Extension Service offers the following recommendation of drought-tolerant plants to consider: trees: redbud, crapemyrtle, yellowwood, pine oak, Chinese elm, Atlas cedar, American holly, Colorado blue spruce; deciduous shrubs: smoketree, burning bush, pinxterbloom azalea; evergreen shrubs: heavenly bamboo, false-holly, juniper; herbaceous plants: cushion spurge, butterfly weed and candy taft.

For more information on xeriscaping, contact the Maryland Cooperative Extension Service’s Home and Garden Information Center at 1-800342-2507 or www.hgic.umd.edu. To review their article on xeriscaping, visit http://hgic.umd.edu/_media/ documents/XericapingHG25pfv.pdf.

Navigating the

Foreclosure Maze

Jackie Ward Richardson, GWUL Director of Housing and Community Development Nick Westbrooks, GWUL Intern

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ou’ve had the high credit score and the income.

You have been current on your mortgage payments.

But, an unexpected financial hardship happens to you making you unable to make your payments. As a result, you’re faced with the threat of eviction from your home. Foreclosure can be a long and stressful process, but it doesn’t have to end this way. There are alternatives and services available to assist homeowners encountering foreclosure.

Own to Rent

For the homeowners who want to avoid foreclosure but remain in their homes, limited servicers offer programs in which the borrower remains in the home but transitions from owner to renter. Participants of Fannie Mae’s Deed for Lease program transfer their home’s title to Fannie Mae and sign a one-year lease with the possibility of month-to-month extensions afterwards.

Similar to Deed for Lease is Bank of America’s Mortgage

to Lease program that allows the borrower to hand over the home’s title to the bank and have the mortgage debt forgiven. Also in return, homeowners may remain in the house and pay rent less than their mortgage payments. Additionally, they don’t have to pay property tax or homeowners insurance. Although Mortgage to Lease is a pilot program offered to a limited and select group of Bank of America customers in Arizona, Nevada and New York, the program may expand to more customers. Keep a look out for further developments of Mortgage to Lease programs and other financial institutions that may follow this model.

As the Director of Housing and Community Development at the Greater Washington Urban League, Jacquelyne Ward-Richardson says, “It is the duty of the servicers to supply such assistance. The banks have a moral obligation to assist homeowners with transition from home ownership to renting.”

Federal Assistance

Along with the lenders, the federal government has pledged itself to help make home ownership more affordable and foreclosure avoidable. Under the

Obama administration’s Making Home Affordable (MHA) plan, borrowers have several programs available to them based on their specific financial situation. Eligible participants may qualify for reduced mortgage payments, principal reductions if the home is worth more than the owner owes and refinancing regardless of whether the value of the home declines.

The bank foreclosure fraud settlement reached between five major banks, the state attorneys general and the federal government in February was supposed to offer relief to foreclosure clients. The settlement prohibits the lenders from foreclosing on homeowners while negotiating mortgage modifications. The deal also provided funds to the states for foreclosure prevention tactics such as lowering mortgage balances and interest rates. Borrowers who lost their homes were eligible for payouts, but instead of receiving funding to replace their homes, each client was supposed to receive $1,500--$2,000. A study released in April and updated in May by Enterprise Community Partners, an affordable housing group revealed that many of the states are diverting the funds to fill budget gaps.

Home Transition

If remaining in your home isn’t an option, servicers are available to assist you with your transition from your home to more affordable housing. Bank of America and Wells Fargo offer tips and alternatives to foreclosure for homeowners who are transitioning out of their houses. Through a short sale, the homeowner sells the property for less than the amount owed. The lender and the borrower agree that selling the real estate at a loss is better than foreclosing.

The bank may also assist you with a deed-in-lieu of foreclosure in which the borrower transfers the ownership of the property to the lender without going through foreclosure. Some lenders also offer the Cash for Keys program in which the lender pays the borrower money to move out in a timely manner and with less expense. The borrower has money to cover moving costs, and both the lender and borrower avoid the prolonged eviction process.

Considering the Hardships

Some of the alternatives mentioned above will negatively affect your credit, but credit can be rebuilt with time and patience.

H-16 june 2012 / HOMEOWNERSHIP SUPPLEMENT

Unexpected financial struggles do arise making it difficult for individuals to make their payments. Ward-Richardson believes lenders should take this reality into thought.

“The banks received thousand of dollars from these homeowners when they were able to pay. Now that they can’t, there should be some compassion in the process,” Ward-Richardson says. “Many of these homeowners that are now in default had excellent credit leading up to their hardship, and that fact should be considered during this transition.”

A new program exclusively designed for this purpose, WardRichardson says, may be a solution in the future.

“I foresee a major bank creating a mortgage program specifically geared towards homeowners whose homes were foreclosed due to hardship beyond their control, a program where the underwriter looks at credit prior to the default on the mortgage that caused the foreclosure.”

If you need foreclosure tips or want to see what alternative is best for you, contact a HUD- certified housing counseling agency or contact the Greater Washington Urban League at (202) 2658200 or www.gwul.org.

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HOMEOWNERSHIP SUPPLEMENT / june 2012 H-17

Department of Housing and Community Development (DHCD) B

eing well equipped with knowledge is the key to making informed decisions about your housing needs.

The Government of the District of Columbia and the Department of Housing and Community Development (DHCD) are committed to providing resources to its low and moderate income residents for affordable housing, homeownership opportunities and foreclosure prevention. The city has a wealth of information, programs, and services that support residents throughout the homeownership process.

DHCD has a full suite of homebuyer assistance programs that help make home ownership

affordable for low-to-moderate income residents. Our signature program is the Home Purchase Assistance Program (HPAP) which provides up to $44,000 in down payment and closing cost assistance. District government employees have the option to participate in the Employer Assisted Housing Program (EAHP), which provides up to $10,000 for down payment assistance, and also provides matching grant funds of up to $1,500.

The Negotiated Employee Affordable Home Purchase Program (NEAHP) provides between $3,000 and $26,500 as a second trust mortgage to District government employees whose position is covered

www.dhcd.dc.gov

dhcd Department of Housing and Community Development BUILDING ENDURING COMMUNITIES

Provides Resources

by specific collective bargaining agreements. Additionally, the Home Purchase Rehabilitation Program allows HPAP buyers to purchase homes that require limited repairs to address health, safety and building code violations by using HPAP in conjunction with FHA 203(k) Streamline Loan. The minimum rehab loan is $5,000 and the maximum is $35,000. This program allows homebuyers to purchase vacant or foreclosed properties.

Lastly, DHCD has a temporary HPAP Enhancement, where assistance levels in designated census tracts in Ward 5 and all of Ward 7 and Ward 8 are increased up to $77,000 for down payment and closing cost. HPAP En-

hancement funding is an eligible activity under President Obama’s American Recovery and Reinvestment Act’s second round of Neighborhood Stabilization Program.

DHCD also funds community-based organizations to provide housing counseling. These organizations, located throughout the city, provide pre-purchase counseling to ensure that buyers are prepared for homeownership, administer foreclosure prevention counseling to help keep at-risk owners in their homes, and offer credit counseling to help residents manage their finances.

The Department is fully committed to fulfilling its mission

of creating and preserving opportunities for affordable housing and economic development and to revitalizing underserved communities in the District of Columbia. Residents can visit to get more information on the Department’s programs by visiting us online at dhcd.dc.gov or in person. The DHCD Housing Resource Center is available at our Ward 8 headquarters, located at the corner of Good Hope Road and Martin Luther King, Jr. Avenue, SE. The Center is open Monday-Friday from 8:30 a.m. – 3:30 p.m. Residents can also browse affordable housing units anytime at DCHousingSearch.org.

Department of Housing anD Community Development Celebrating June as national HomeownersHip montH! Creating and preserving opportunities for affordable housing and economic development and revitalizing underserved communities in the District of Columbia • Providing gap financing • Increasing first-time homeownership opportunities • Providing funding to rehabilitate single-family and multifamily homes • Supporting communities through neighborhood based activities • Addressing vacant and abandoned properties • Overseeing the administration of rental housing laws

To learn more, call (202) 442-7200 or visit www.dhcd.dc.gov.

Government of the District of Columbia Vincent C. Gray, Mayor

H-18 june 2012 / HOMEOWNERSHIP SUPPLEMENT

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Show Me The Money!

By Carla Labat

R

eady to buy? Not sure you should? Well, it’s time to get off the fence!

The opportunity for first-time home buyers to purchase in one of the strongest real estate areas in the nation is NOW. Why? You may not be aware but the District of Columbia and Maryland offer a number of loan programs and incentives to firsttime home buyers and state employees. Now is the time to take advantage of this close-to free money, before it is all gone.

The District of Columbia’s Home Purchase Assistance Program (HPAP) offers low interest, five year deferred loans to qualified buyers with up to $44,000 in financial assistance that can be used towards down payment and closing costs. The Employer-Assisted Housing Program (EAHP) provides for all District of Columbia government employees matching down payment funds up to $1,500 and a deferred second trust loan up to $10,000. For more information on loan amounts, eligibility factors and how to apply, visit www. gwul.org.

The District also grants taxabatements to purchasers beginning in the next full tax year after filing. That means you may be exempt from paying real estate taxes on your new home for 5 years! Here is another great part to this deal; you are exempt from paying the 1.1% (of the purchase price) recordation tax; and the seller’s 1.1% (of the purchase price) transfer tax is credited to you at settlement. Qualifying factors including household income limits and your sales purchase price is capped at $356,000. For more information, visit www. dc.gov. Still need more incentive to buy now? Read on!

Did you know many lenders are offering credits of up to 3% to be used towards your closing cost for only a slightly higher interest rate? Even better, a qualifying credit on a conventional loan can be used towards the payment for an upfront single insurance premium, which would eliminate those monthly private mortgage

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insurance (PMI) payments. Now that’s worth investigating! Make sure you consult with your lender to see if these and other options are available along with other conditions required for these types of credits.

The State of Maryland offers 0% interest loans for firsttime home buyers through their Maryland Community Development Administration (CDA) mortgage program. In addition to providing low interest rates, the state affords down-payment and closing cost assistance and special incentives for state employees totaling up to $13,500. For more information, visit www.mmprogram.org.

National programs are available to our area as well. The Federal Home Loan Bank Atlanta (FHLBank ) provides up to $5,000 for down-payment, closing costs, or rehabilitation assistance and counseling with the purchase of an existing unit by a qualified first-time or non-first time homebuyer. The FHLBank recently launched several new programs exclusively for veterans or active duty members of any branch of the U.S. military that are currently serving or have served in an overseas military intervention, or their surviving spouses. Up to $15,000 worth! To find out more about these grant programs, check out the list of local member financial institutions that can be found on the Bank’s website at www.fhlbatl. com/setaside.

The Neighborhood Assistance Corporation of America (NACA) continues to provide one of the best loan programs around. In addition to super low interest rates, NACA offers no down payment, no closing costs and no fees! This presents an exceptional savings to the buyer, giving you more money in your pocket for new furniture, custom paint, landscaping and anything else your heart desires to transfer your new house, into a home.

Carla Labat is a full-time real estate agent with Long and Foster, Realtors. To see how she can help you purchase your first home or sell your existing one, contact her at 202.361.8538, carla.labat@lnf.com.

How First-Time Home Buyers Can Take Advantage of Today’s Real Estate Market

C AD CR/ LM DAR E A LL EAS T ABT E A T 202.361.8538 Cellular 202.363.9700 Office

Carla.Labat@longandfoster.com www.CapitolHomesDC.com www.facebook.com/CarlaLabatRE

Carla Labat is a full-time real estate agent with Long and Foster, Realtors.

turn the key on your first home Buying your first home is exciting, especially when you have a trusted local bank and experienced mortgage professionals working with you. from the right loan options for your needs and your finances, to walking away with that new house key in your hand, an eagleBank loan officer with decades of mortgage loan experience can make your first mortgage loan experience a really great one. eagleBank – local, trusted, stable, credible. the riGht PArtner for your first home.

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HOMEOWNERSHIP SUPPLEMENT / june 2012 H-19

Helping Residents

Along the Way to

Homeownership A

chieving Your Best Life (AYBL) is the first program designed specifically to prepare public housing residents for homeownership. Families who qualify for the program have up to five years to purchase a home. The rent that the head of household normally would pay as a public housing resident will be deposited into an escrow account. When a family is ready to graduate and purchase their own home, they will receive the escrow funds to use toward their down-payment.

The homes at Elvans Court totally change the concept of what affordable rental housing should look like. The townhome style apartments come complete with hardwood floors and have decks constructed from Trex weather-resistant material.

The 20 “green” townhomes have Energy Star® heating, air conditioning, appliances and hot water heaters and closets with hook-ups for residentsupplied washers and dryers. They also have sid-

H-20 june 2012 / HOMEOWNERSHIP SUPPLEMENT

ing and roof tiles made from recyclable materials as well as Low-E windows and insulated exterior doors.

DCHA will provide case management and extensive education programs to help AYBL residents advance in their jobs, improve credit scores and take other steps to make them successful and confidant as they move toward homeownership.

When participants are ready to graduate from the program, they will move out of Elvans Court to make room for new AYBL homeownership families to move in.

There are currently 11 participants in the program, and DCHA has committed up to 32 properties. There are eight participants at Elvans and three participants living in the newly renovated Columbia Road apartments. Congratulations to all of our future homeowners out there on taking that first step.

For more information visit: http://www. dchousing.org/

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Build a House – A

charming, two-story, single-family home is coming up for sale in Washington’s Brightwood Park community in fall 2012. The property is both new and historic. It is the first house built by students in the Academy of Construction and Design at Cardozo Senior High School.

On a prime corner lot on 13th Street Northwest, the approximately 2,000 square-foot, 3 bedroom, 3 and 1/2 bath home features a family room, open floor plan, sunny rear deck and off-street parking. Miller & Long Concrete Construction, Donohoe Construction, TW Perry and other local contractors donated building materials and provided professional craftsmen to teach Academy students how to build a house while gaining technical skills.

Proceeds from the sale of the home will be reinvested in the Academy’s annual home building program.

Academy Director Shelly Karriem describes the program as an experience that offers students many life lessons, too.

“Our students have met and exceeded every expectation we’ve set for them,” she said. The Academy has a 90 percent high school graduation rate in programs that launch students into work, college and careers.

The nonprofit DC Students Construction Trades Foundation operates the Academy in partnership with D.C. Public Schools. The foundation and its training partners brought skilled trades back to District schools with the opening of the Academy of Construction and Design at Cardozo Senior High School in 2005. The foundation also operates a Summer Institute for youth and a Districtbased registered apprenticeship instruction program for industry professionals.

Combining academic and technical achievement motivates many students to think differently about their future. When Dominic Wright enrolled in the Academy of Construction and Design, he

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Build a Future D.C. Construction Academy Offers First Student-Built House for Sale

avoided speaking up in class because other students laughed at him. Wright quickly found that Academy instructors were very interested in what he had to say and would not let him stand on the sidelines. This year, the Class of 2012 senior won the top $4,000 award in the Academy’s annual scholarship competition, which recognizes work or college bound seniors demonstrating outstanding educational achievement and citizenship. In his winning essay, Dominic wrote, “My skills in carpentry helped me to learn more about myself.

This program helped me find what I wanted to do after high school.” He plans to work for Miller & Long after graduation.

Glen W. Sutcliffe, a Realtor with W.C. and A.N. Miller, A Long & Foster Company, is managing the sale of the student-built house. “This house means so much to the students, instructors, sponsors and volunteers who made it a reality,” said Glen. “It also offers excellent value in a great location for new homeowners.” For a buyer preview, call (202) 966-0400, or email GWS@LNF.com

Chester installs an outlet in the house/ Fred Lewis/DCPS

Dominic Wright, Dreyfuss Scholarship Winner and his mom/ Kea Taylor

Andrell uses a saw/ Fred Lewis/DCPS

Connecting industry, community, school and government partners to deliver: Career and Technical Education for high school youth Registered Apprenticeship Program for professional development Skilled Job Training for the new industry workforce Accredited by the National Center for Construction Education and Research PHONE 202.340.5657 • EMAIL info@dcstudentsctf.org

HOMEOWNERSHIP SUPPLEMENT / june 2012 H-21

Learn more at dcstudentsctf.org

Preserving the American Dream: A

By Charlene Crowell

Local initiatives, CRA and community partnerships

Knowledge, service, ownership.

Self-Help creates and protects homeownership through fair lending practices, honest research, and advocacy for borrowers.

Want to own a home? Know folks who do?

Have a straight forward discussion today

Call 1-866-265-3488 or visit www.Self-Help.org

12-088

lthough Congress enacted the federal Community Reinvestment Act in 1977, its goal of requiring banks to serve the entire community where they accept deposits, not just the wealthy parts, has remained a contentious issue nationwide. CRA’s goal to include low-and-middle income borrowers in access to fair and sustainable loans has now triggered a series of local ordinances that target lending within their jurisdictions. More commonly known as “responsible banking” laws, these ordinances empower local officials to monitor and when warranted, challenge lenders on their levels of service and access for their communities.

The two most recent cities to pass these local ordinances are also the nation’s most populous: New York City and Los Angeles.

These cities now join others such as Boston, Berkeley, Cleveland, Kansas City, Philadelphia, Pittsburgh and San Diego, Seattle who have either enacted or are considering similar ordinances.

According to New York City Council Member Al Vann, sponsor of its Responsible Banking Act, “In order to ensure the economic health and vitality of our cities, we need banks committed to addressing the financial needs of our neighborhoods. It is essential that localities encourage responsible banking behavior, particularly through the leverage of their financial dealings with banks.”

On the other side of the country, Los Angeles’ City Council unanimously passed a similar ordinance last month. Originally introduced in 2009, their local law will not preclude any bank from doing business with the city; but it will require those interested in municipal accounts to provide specific information on their work in the city.

While some opponents may argue that these local initiatives double regulations and place unfair reporting burdens on lenders, a 2011 research report by the Association for Neighborhood and Housing Development (ANHD) found that in New York City alone, a $4.4 billion decrease in reinvestment by banks in the nation’s financial capital occurred, despite a $38 million increase in local deposits over a two-year period. Other ANHD 2009 findings showed: 11 of the city’s largest mort-

H-22 june 2012 / HOMEOWNERSHIP SUPPLEMENT

gage banks reduced this form of lending from $7.0 billion to $4 billion – a nearly 43 percent reduction; Only 132 mortgage loans worth $7.34 million were made to low-income borrows – a drop of over 70 percent; Commercial banks such as Capital One, Valley National and M&T Bank dedicated less than 1.5 percent to either CRA investments or community development lending.

The non-profit Center for Community Self-Help, an affiliate of the Center for Responsible Lending and headquartered in Durham, N.C, has proven for years that sensible lending to lower-income families and minorities can be successful. This claim is backed by research by the Center for Community Capital (CCC) at the University of North Carolina. CCC analyzed 50,000 CRA-type loans made by Self-Help and purchased by Fannie Mae, and found that these loans performed much better than subprime mortgages made at the same time to similar borrowers.

Self-Help is also building and renovating homes in several states, and then offering these homes to low-and-middle income borrowers with fair, affordable financing based on a thorough assessment of the borrower’s ability to repay the loan.

The guiding principle is that lower-income borrowers can become successful homeowners with mortgages that are designed to last.

When CRA was enacted, it was a response to “redlining,” the exclusion of low-and-middle income and people of color from mainstream lending. The goal of expanding community reinvestment and offering the American Dream to more people benefits everyone by strengthening communities and the economy at large.

Through local banking ordinances, better federal monitoring and organizations like SelfHelp, the American Dream will be preserved for this and future generations.

Charlene Crowell is a communications manager with the Center for Responsible Lending. She can be reached at: Charlene.crowell@responsiblelending.org.

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FIVE Things Need to 1 Homeowners

Don’t miss the A mortgage loan . Sometimes life Independent modification does hurts, but where Foreclosure Review not ensure success. there is a will, there deadline.

Many homeowners who If you were in a is a way. got a modification are foreclosure process on your primary residence between January 1, 2009 and December 31, 2010 you may qualify for a free Independent Foreclosure Review. The review determines if a homeowner suffered a financial injury and should receive compensation. If you were in a foreclosure process during that time you should find out if you qualify for the review.

Hurry! There is a deadline.

You must request a review before July 31. Contact HomeFree-USA for more information.

2

Now is the best time to buy a home.

Know

3

5

still having difficulty paying their mortgage.

A subsequent job loss, salary reduction, and or an inadequate modification are some of the causes.

Call a HUD-approved nonprofit housing counseling agency like HomeFree-USA for further advice and assistance with your lender.

HomeFree-USA will meet with you personally to provide quick answers and options.

Unfortunately everybody will not be able to keep their homes. Do all you can to avoid foreclosure. A foreclosure on your credit record will make it difficult to buy a home again or to rent housing. Short sales and deeds-in-lieu are other options. You’ll benefit

from the HomeFree-USA class, Mortgage Options to Consider. Contact us now to reserve your space in the next class.

The best to you! Call us at 301.891.8400 Visit us at www.homefreeusa.org Marcia Griffin, president HomeFree-USA

HOMEOWNER ALERT!

Get Your Foreclosure Reviewed Before the July 31 Deadline FREE

4

Don’t get scammed.

HELP !

Find out if you are eligible for a FREE Independent Foreclosure Review compensation & remedy may be available

Do not pay anyone upfront for a mortgage loan modification. No one can guarantee a Mortgage rates are low and home prices will never modification. Let a be lower. To be more HUD-approved housing successful in your mortgage counseling agency like pursuits, attend at least 1 HomeFree-USA help you. homeowner education class. HUD-approved agencies Each month, HomeFreework on your behalf, are USA hosts 10 Homebuying reliable and the services Secrets Everyone Ought to are FREE. Know. Call HomeFree-USA now to reserve your space.

Attendance is limited to 20.

If you were in foreclosure in 2009 or 2010

Take Action Now! 

Meet with a counselor



Find out if you qualify



Get your questions answered

DON’T MISS OUT!!

Call HomeFree-USA To Get

MORE HELP FOR HOMEOWNERS Free Mortgage Advice * Quick Answers * New Program Options d rien iend aF Fr Be a h it re w Sha

HomeFree-USA 3401A East West Highway Hyattsville, MD 20782

www.HomeFreeUSA.org Or Call 301.891.8423

HomeFree- USA is a HUD approved, Government funded 501(c)(3) not- for- profit housing counseling organization.

WATCH OUT FOR SCAMS! There is only one Independent Foreclosure Review.

Beware of anyone who asks you to pay a fee for any foreclosure review service such as completing the Request for Review Form.

Learn more at www.IndependentForeclosureReview.com

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HOMEOWNERSHIP SUPPLEMENT / june 2012 H-23

Industrial Bank

Industrial Strong

Since 1934

Keeping the dream of home ownership alive and well Fixed rates  First time home buyer programs  Refinance  Home Equity Line of Credit Apply in person or online at www.industrial-bank.com 

7 keys to get you into your new home.   

   

Review your personal credit report Analyze your current budget This is a “buyer’s market” (don’t rush to buy) Get pre-qualified for the amount of your desired monthly payment Home inspection is a must!

Don’t speculate on “fixer-uppers” until you know the cost of improvements Cash is king; save money (It is important to have cash reserves for emergencies)

Contact our Home Mortgage Division today at (202) 722-2097

MEMBER FDIC

H-24 june 2012 / HOMEOWNERSHIP SUPPLEMENT

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