NeighborWorks America Continues Commitment to Gulf Coast Region

On the fifth anniversary of Hurricane Katrina, NeighborWorks America underscored its commitment to the Gulf Coast region, announcing that it will invest $3 million in the region by the end of 2010. Since 2006, NeighborWorks America has invested $15 million in resources in the Gulf to support an array of rebuilding efforts.

Here's some of the major areas where NeighborWorks is having impact:

• The construction or rehabilitation of 3,718 for-sale and multifamily affordable housing units, 250 of which incorporate green building techniques
  
• Financial and homeownership education for 26,030 Gulf Coast residents
  
• Support, technical assistance, and training for local nonprofit affordable housing and community development organizations throughout the region.
  
  “NeighborWorks remains committed to rebuilding the communities of the Gulf Coast, and will continue to work effectively with our local and regional partners to rehabilitate and develop affordable housing, deliver financial education and homeownership counseling, and provide technical assistance and support for the nonprofit community. With the help of our partners, we will continue to empower affected families and help to build a better future for generations to come,” said Ken Wade, CEO of NeighborWorks America.
  
  This year alone, NeighborWorks America is investing an additional $3 million in the region, including $225,000 in grants to four Gulf area organizations who are providing assistance to constituents impacted by the BP oil spill.
  
  James Ross, Gulf Rebuilding manager at NeighborWorks, works closely with Gulf partners has seen first-hand the impact of this latest crisis. “Folks here are blindsided by this disaster – they don’t know how to support their families or pay their mortgages now that their businesses have been shuttered and their way of life has been threatened. Funding from NeighborWorks gives partners much-needed flexibility to address issues resulting from the oil spill.” View news release.

Don’t Let Rising Credit Card Rates Lead to a Financial Fall

By Milt Sharp, Jr.
National Homeownership Programs
NeighborWorks America

Interest rates on mortgages are at record low levels, but the interest rate on another staple of consumer credit – credit cards – have not come down alongside. That’s the news from The Wall Street Journal recently, which reported that credit card interest rates are at the highest relative level in more than 20 years.

The average consumer who carries a balance on a credit card is paying nearly 15 percent interest, more than three times the cost today of a 30-year fixed rate mortgage loan.

But while credit cards are necessary for many consumer transactions today – reserving a hotel, rental car or for shopping online -- the wise use of credit cards will save money.

Here’s some advice that NeighborWorks organizations that offer financial literacy and capability training are telling their customers:

1. One of the best ways to avoid running up expensive credit card balances is start and maintain a savings plan. Unexpected costs that might force a consumer to reach for a credit card can be mitigated if savings have been built for emergencies.
2. If a credit card has to be used for an unforeseen expense, consumers should immediately begin adjusting their other expenses to pay off the credit debt as quickly as possible.
3. Use the right credit card. Not all credit cards are created equal. Some have high annual fees just for having the card, while others charge much higher interest rates than the recent national average of 14.7 percent. Seek out the advice of an unbiased financial counselor or advisor when choosing a credit card. Select NeighborWorks organizations and other nonprofits can help.
4. Don’t carry the credit card in your wallet or purse. Remember, the best use of credit is for emergencies, not every day purchases. Leave the plastic at home and you’ll be less inclined to use it – and to stay within a spending plan and budget.
5. Plan large purchases without relying on credit. According to an article in the Independent Retailer, nearly three-quarters of consumers have rediscovered the benefits of buying an item on layaway.

Buying items that exceed your weekly or monthly budget on layaway, or paying a little bit of the purchase cost over time, cuts down on the use of credit cards and their high interest cost. Inquire at your favorite retailer to see if they have a layaway option.

The bottom line is that even though credit card interest rates are climbing, consumers don’t have to risk a financial fall by using them.

On NPR, NeighborWorks' Marietta Rodriguez Discusses Unemployment's Impact on Foreclosures

Realty Trac reported today that foreclosure filings in July were up nearly 4 percent from the previous month. But when compared to this time last year, foreclosure activity has actually dipped 10 percent.

While the drop in default notices, scheduled auctions and bank repossessions over the last year is a good sign, Marietta Rodriguez, NeighborWorks America’s director of homeownership and lending, cautions against "breathing a sigh of relief."

In an interview with NPR this morning, Rodriguez said that lack of employment is a major problem driving many homeowners over the edge to foreclosure.

“On the ground, our counselors are telling us they're seeing more and more consumers, more and more borrowers seeking help — that their numbers are not decreasing," Rodriguez said in the NPR interview.

Indeed today, NeighborWorks America announced that more than one million homeowners facing foreclosure have been counseled through the Congressionally-funded National Foreclosure Mitigation Counseling (NMFC) program. And 58 percent of those being counseled report that job loss is the reason they are facing foreclosure.

NFMC has found that foreclosure counseling works. Homeowners served through the program are finding a solution to foreclosure and receiving indispensable information and guidance. A recent independent NFMC report found that the program’s clients were 60 percent more likely to avoid losing their homes to foreclosure than those who went without counseling. In addition, NFMC clients were more likely to receive a loan modification, and on average, saved $454 more on their monthly mortgage payments per month, than homeowners who received modifications but did not work with a counselor.

More Than One Million Homeowners Counseled by National Foreclosure Mitigation Counseling Program

Today NeighborWorks America announced that more than 1,000,000 homeowners facing foreclosure have received much-needed counseling thanks to the Congressionally-funded National Foreclosure Mitigation Counseling (NFMC) Program.

At a time when foreclosures continue to significantly affect the housing market and the national unemployment rate hovers around 9 percent, foreclosure intervention counseling provided by NFMC Program-funded nonprofit housing counseling organizations is helping homeowners across the country find a solution to foreclosure and receive indispensable information and guidance.

“While more than 1,000,000 homeowners have received foreclosure intervention counseling thanks to the foresight of Congress (especially the Transportation, Housing and Urban Development (THUD) appropriations subcommittees) and the hard work of more than 1,700 NFMC-funded counseling organizations, an additional 4 million homeowners are expected to face foreclosure in 2010. We continue to reach out to all homeowners who may face foreclosure to make them aware that foreclosure intervention counseling is available and offered for free at NFMC-funded counseling organizations across the country,” said Ken Wade, CEO of NeighborWorks America.

Much more on this important announcement can be found in the NeighborWorks newsroom.

NeighborWorks of Western Vermont Awarded $4.5 Million from DOE to Improve Energy Efficiency

Energy-efficient homes, although more common in recent years, remain rare. According to the Environmental Protection Agency, some 99 percent of US homes remain damp, drafty and expensive to heat and cool. US Department of Energy data show that buildings, including residential properties, account for nearly 50 percent of US energy consumption, while transportation accounts for about 30 percent.

That is why the Department of Energy is awarding more $3.2 billion to assist US cities, counties, states, territories, and Indian tribes in developing, promoting, implementing, and managing energy efficiency and conservation projects and programs.

NeighborWorks of Western Vermont was recently awarded $4.5 million through this Energy Efficiency and Conservation Block Grant program to implement local energy efficiency and renewable energy programs that will reduce energy use by homes, vehicles and businesses. Via NeighborWorks of Western Vermont, Rutland County will be one of two communities in New England to be served through the block grant program.

NeighborWorks of Western Vermont will use the funds to enhance an incentive program offered through Efficiency Vermont and will also work with Central Vermont Public Service, Green Mountain College and several local banks. They will offer efficiency audits, which look at what improvements can be made to a home, and then manage the construction while those improvements are made. They will fund improvements with a combination of cash rebates and loans and they hope to structure the loans so the payments from homeowners are less than the projected savings from the improvements.

NeighborWorks of Western Vermont hopes Rutland County will lead the state in energy efficiency, according to the executive director, Ludy Biddle. She said helping homeowners make such improvements has been a goal for the organization since an “energy summit” that they organized in September 2009.