White House Expands Foreclosure Fix

The Obama administration said on April 28 that it is expanding its foreclosure prevention program to cover second mortgages and to direct more troubled borrowers to the Hope for Homeowners program. Announced in mid-February, the president's $75 billion program calls for adjusting eligible borrowers' loans so monthly payments are no more than 31 percent of pre-tax income. The plan is expected to help up to 9 million avoid foreclosure. More at CNNMoney.com

NeighborWorks America to Distribute $81 Million in Grants to NeighborWorks Network in 2009

At a time when communities need resources most, thousands across the nation will receive a much-needed affordable housing and community development boost as NeighborWorks America distributes more than $81 million in flexible grants to its national network of more than 230 local nonprofit NeighborWorks organizations. The $81 million that will be distributed in 2009 is an increase from the previous year, and reflects the increased need for community development since the financial crisis began to make headlines in 2008. Read the announcement.

NeighborWorks Tackles Growing Foreclosure Crisis in Louisiana

NeighborWorks America’s Southern District office partnered with the Louisiana Foreclosure Prevention and Mitigation Task Force in March to launch a community stabilization road show. These comprehensive meetings were designed to help stabilize communities by ensuring resources are available to homeowners who are behind on their mortgages and in danger of losing their homes. The task force included staff from FDIC, Louisiana Housing Finance Agency, Federal Reserve Bank of Atlanta, Office of the Comptroller of the Currency and Fannie Mae. Between March 17-20, the task force engaged more than 110 community leaders in target cities. Read more about this effort.

R&B Celebrity Mary J. Blige Headlines NeighborWorks America and HOPE NOW Foreclosure Prevention Event

On April 18, NeighborWorks America National Homeownership Programs Director Marietta Rodriguez joined the HOPE NOW alliance for the ‘Bringing Hope Home’ foreclosure prevention campaign, with Grammy Award winning American R&B singer-songwriter Mary J. Blige, while participating in a bus tour of Atlanta, GA. The goal of the foreclosure prevention campaign is to raise awareness of the foreclosure crisis and the free resources available to homeowners in danger of foreclosure. Learn more.

NeighborWorks America Supports Administration Efforts to Combat Foreclosure “Rescue” Scammers and Raise Public Awareness

NeighborWorks America supports and applauds the much-needed crackdown on foreclosure rescue scam artists that was announced April 6 by the Federal Trade Commission (FTC), U.S. Attorney General’s Office, Treasury Department, and Department of Housing and Urban Development. NeighborWorks America is also working with the FTC to develop a national public education campaign to make borrowers aware of how to avoid foreclosure prevention scam artists. Homeowners in danger of foreclosure should never pay for help, and should instead seek assistance from HUD-approved nonprofit housing counseling agencies, including those found at www.findaforeclosurecounselor.org and www.makinghomeaffordable.gov.

See more on this at nw.org.

See more resources at nwconsumer.org

NeighborWorks America Urges Consumers to Get Back to Financial Basics

With the recession, job loss, and the foreclosure crisis continuing to make headlines in 2009, here are some tips from NeighborWorks America to help you strengthen your financial know-how:

Create a budget. Examine last month’s bank statement. Create a budget spreadsheet armed with information about your wages, how much you spend each month, and categorize your spending. Expense categories can include: Rent or Mortgage, Gas, Groceries, Utilities, Insurance, Car Payment, Credit Card Payment, and more. After you see how much you are making, how much you are spending, and what you are spending your money on, you will be better able to create a budget that works for you.

Cut expenses. Going out for lunch or dinner, daily trips to the coffee shop, and more, add up. After creating a budget and examining your spending over the last month, you will likely see expenses that can be cut, which may add up to monthly savings in your bank account. Instead of buying a daily cup of coffee, make a cup at home. Bring your lunch instead of buying it everyday. And, cook dinner at home with your family or friends instead of meeting up a few times a week. The combination of coffee at home and a bag lunch a couple of days a week has the potential to save more than $50 each month.

Tackle debt. Once you cut unnecessary expenses, you may find a little extra money that can be used to tackle any debt you may have. To be truly financially fit, work on paying down and eventually eliminating your debt by paying more than the monthly minimum payment. The monthly minimum payment may barely cover the interest the debt accrues, which means that by paying the minimum each month, it could take more than a dozen years to pay off the debt. By paying even a little more than the minimum, you are working your way toward financial fitness.

Build an emergency fund. With each paycheck, make an effort to contribute to a savings account separate from your checking account. Each contribution, no matter the amount, builds a cushion for emergencies down the road.

Enroll in a financial fitness course at a nonprofit NeighborWorks organization in your community. Financial fitness courses can teach you money management skills that can help put them on the path to decreasing debt and increasing resources. Financial literacy can also help you become more aware of common pitfalls – including consumer scams and predatory lending practices – and how to avoid them. To find a NeighborWorks organization near you that offers financial fitness courses, visit www.nw.org/network/nwdata/financialfitness.asp.

Avoid being scammed. If you are facing financial difficulty from foreclosure, job loss, credit card debt, and aren’t sure where to turn for guidance, seek help from a nonprofit HUD-approved housing or credit counseling organization. Avoid scam companies that contact you first and promise to “eliminate debt” in their advertising. Nonprofit organizations have your best interest at heart and will work with you one-on-one to remedy your situation. The old adage, “You get what you pay for,” does not apply with reputable nonprofits. To find a NeighborWorks organization or other nonprofit HUD-approved housing counseling organization near you, visit www.findaforeclosurecounselor.org.

For more information about financial fitness, contact Erin Angell Collins, 202-220-6317, ecollins@nw.org, or visit www.nw.org.

NeighborWorks Member Leads Effort to Reclaim Neighborhoods with Large-Scale Purchase of Defaulted Mortgages

HANDS, Inc., a member of the NeighborWorks America network, will purchase the defaulted mortgages on 47 vacant homes in the greater Newark, New Jersey area. The bulk purchase of mortgages expected to foreclose is the first large-scale purchase in the nation by an alliance of nonprofit organizations. All of the homes are vacant and abandoned, and most are deteriorated, contributing to blight in their surrounding communities.
Read news release.
View photos of the vacant properties