Baltimore Neighborhood Finds Success Fighting Foreclosure
Some would define insanity as repeating the same action and expecting different results, which is why it's refreshing to hear about those who take unconventional approaches to serious problems and solve them successfully. The Belair-Edison Neighborhood Initiative, a Baltimore nonprofit organization, has found such a method for dealing with mortgage foreclosure.
According to the New York Times, BENI operates differently from most foreclosure counseling agencies: rather than advertising its services and waiting for struggling homeowners to call, BENI actively contacts those who are likely to be in need of help.
BENI counselors reportedly research public records and advertise locally to reach homeowners with subprime and adjustable-rate mortgages before it's too late to save their homes. And their methods seem to work.
Between 1993 and 2003, sources indicate that Belair-Edison had a high foreclosure rate, with approximately one in every three houses foreclosed on in that period. Since then, with the efforts of BENI, foreclosure rates have apparently stabilized and even become less common, even as they skyrocketed around the country.
Counselors allegedly contact lenders to work out new loan terms - something many homeowners admit they wouldn't know how to do on their own. And, as part of their proactive approach, BENI counselors apparently help families develop budgets to help stay ahead of mortgage costs.
Though exact statistics are difficult to come by, sources estimate that foreclosures have decreased by about a third since their peak in the last decade. BENI counselors evidently try to discourage homeowners from ignoring lender notifications or feeling embarrassed about mortgage payment difficulties.
Homeowners who act early have the best chances of saving their houses, according to reports.
But, even with timely action, lender negotiations and the state funding BENI counselors are often able to procure, it seems some houses can't be saved. Despite setbacks, the counselors continue to fight against the factors that contribute to home loss.
BENI counselors reportedly teach homeownership workshops for first-time home buyers, addressing issues like foreclosure and subprime lending. Potential homeowners who attend both the workshop and one-on-one counseling can apply for as much as $10,000 in public and private funding to help with closing costs and down payments, according to the Times.
Such methods should benefit everyone involved in the process of homeownership - lenders can evidently lose tens of thousands of dollars on a single foreclosure; crime rates often creep upward in neighborhoods where many homes go vacant; and families can establish stability when there's no threat of losing the home.
And it seems Maryland Senator Benjamin Cardin is hoping to help the entire nation triumph over foreclosures. The Baltimore Sun notes that Cardin is cosponsoring the Foreclosure Prevention Act, which would allow bankruptcy courts to modify mortgage terms during bankruptcy proceedings.
And he's apparently hoping to introduce new legislation that would provide an income tax credit for those purchasing a primary residence.
The foreclosure crisis continues to rage on across the country, but with innovative efforts like BENI's, help may be on the way for struggling homeowners.