Foreclosure fears? Ten tips from Staff Attorney Tim Darby, Esq.

Many Marylanders are facing the threat of foreclosure due to loss of income because of the COVID-19 Coronavirus pandemic. The St. Ambrose Legal Services Department has compiled the following tips for what to do if you having trouble making mortgage payments:

1. Ask for help from a housing counselor or pro bono attorney as soon as you realize you are in financial trouble. The sooner you ask, the more likely you are to get the necessary support to resolve the problem.
2. Stay in contact with your mortgage servicer so that they are aware of your situation. Your servicer may offer you a forbearance, meaning that they will suspend your obligation to make monthly payments for a certain period of time. Once that period of time ends, you will resume making your normal monthly payments. If you are upfront and transparent about your financial situation, your bank will better understand your needs and interests.
3. Open all of your mail, promptly. Don’t assume you already know what’s inside.
4. Know that the foreclosure process in Maryland takes many months from beginning to end. Many people are frightened when they start receiving mail about a foreclosure action. Take this seriously but know that your lender has to take several steps through the court process before you are legally obligated to leave your home.
5. Know that because of the COVID-19 pandemic, the court system is not processing any foreclosure cases and the Chief Judge of the Court of Appeals of Maryland, our state supreme court, has suspended all evictions.No evictions may legally take place at this time. Once the court system opens back up foreclosure proceedings will resume as normal. You still have an obligation to make mortgage payments unless your servicer tells you otherwise in writing.
6. Do not pay fees for services to assist you with your financial situation when the service is available for free. Thoroughly investigate anyone who is charging you for financial services and what they are doing for the fees.
7. Do not take advice from friends, neighbors, or family unless they are trained in financing.
8. Understand your responsibilities under the debt obligation. A deed of trust is part of a mortgage agreement. A deed is the document that signifies ownership of a piece of real estate.
9. Know your rights and don’t sign any contracts unless you fully understand the document. You may be offered a forbearance or deferment during this time, but make sure you understand the full implications of this sort of arrangement before agreeing to it.  
10. Do not think the problem will just go away. If you cannot afford your house, start considering what next steps you will take in order to find a new living space.

The threat of foreclosure can be intimidating, especially in light of the COVID-19 Coronavirus outbreak. However, being informed of your rights and responsibilities can make the process easier. Going through a foreclosure doesn’t mean losing everything. If you remain informed and proactive throughout the process you’ll be able to salvage the maximum amount of your investment. Find help, resolve the problem, and look ahead to life beyond foreclosure.

Call St. Ambrose for free legal advice and foreclosure counseling: 410-366-8550 extension 209.

Navigating Legal Challenges in the Wake of COVID-19

The current COVID-19 pandemic has unleashed a host of uncertainties in nearly every aspect of personal and public life across the state. St. Ambrose Legal Services is here to work with you to achieve clarity and confidence in challenging times. If you or anyone you know is in need of legal services, contact us today: legal@stambros.org.

Here are some of the questions our legal services team is addressing now:

Q: I recently lost my job due to the COVID-19 pandemic. What resources are available to me?

A: You may file for Unemployment Insurance benefits through the Maryland Department of Budget and Management. You can do so online at http://www.mdunemployment.com or via telephone at 1-877-293-4125 or 410-853-1600.

Q: I am afraid that I will be evicted from my house. Can that happen right now?

A: All foreclosure proceedings in Maryland are currently stayed. That means that no foreclosure case will process through the court system until further notice. Additionally, the Chief Judge of the Court of Appeals of Maryland, our state supreme court, has suspended all evictions whether the property is owned with mortgage or rented from a landlord. Even in cases where evictions were previously authorized, Baltimore City and County have suspended evictions from taking place.

Q: Am I getting a check from the government?

A: The federal government recently passed the CARES Act, which will send money directly to millions of Americans. The Internal Revenue Service will use information from your 2018 or 2019 tax return to determine whether you are entitled to direct payment and the amount that you will receive. If your address has changed since filing and you do not have a direct deposit set up, you will need to contact the IRS to inform them. One way to do this is to call the IRS at 800-829-1040 from 7:00 am to 7:00 pm.

The Treasury Department recently stated that people receiving Social Security benefits will not need to file a tax return and will automatically receive either a paper check via mail or a direct deposit into a bank account.

If you have not filed taxes for 2018 or 2019 and receive income beyond Social Security benefits, you should file your 2019 taxes as soon as possible.

Q: I cannot afford to make my mortgage payment this month. What should I do?

A: The first thing you should do is contact your mortgage servicer and explain the situation. Your servicer may offer a forbearance, meaning that they will suspend your obligation to make monthly payments for a certain period of time. At the end of a forbearance, you will continue making the same monthly payments as before.

Q: I cannot afford to make my rent payment this month. What should I do?

A: You should contact your landlord and explain what is going on. They may offer to work with you on a payment plan or suspend your obligation to pay rent for a period of time. Your landlord CANNOT legally evict you without utilizing the services of your local Sheriff’s office.

Q: What should I do if I cannot afford to pay my utilities?

A: BGE has suspended all service disconnections and late payment fees until at least May 1 and will be working with customers to establish payment arrangements and identify energy assistance options. For further information, contact BGE at 800-685-0123.

Both Baltimore City and Baltimore County have suspended water shutoffs for failure to pay.

Q: I have not paid my property tax. Can my property still go to tax sale?

A: Yes. The 2020 Baltimore City has been delayed, but may still occur this year. The 2020 Baltimore County tax sale is scheduled to take place in early May. YOU DO NOT HAVE TO LEAVE YOUR HOME IMMEDIATELY AFTER IT IS SOLD AT TAX SALE. Even after a property is sold at a tax sale, the owner has a right to pay what is owed (possibly along with fees) until at least six months after the tax sale.

Call the Legal Services Department at St. Ambrose Housing Aid Center for more information at 410-366-8550 extension 209.

Q: Can I still vote in the upcoming elections?

A: The Special Congressional District 7 Election (to replace Rep. Elijah Cummings) will be held exclusively by mail. If you live in the District and you are registered to vote, expect to receive a ballot in your mailbox in early April. In order to have your vote counted, if must be filled out and returned, postmarked on or before April 28, 2020.

The 2020 Primary Election will take place on June 2, 2020 from 7:00 am until 8:00 pm. Early voting will be open from Thursday, May 21 to Thursday, May 28.

Please keep up to date with the State Board of Elections as these dates and procedures are subject to change.

Q: What should I do if I need further assistance or receive a document that I do not understand?

A: You should contact the Legal Services Department at St. Ambrose Housing Aid Center at 410-366-8550, extension 209.

Q: Will any of this information change?

A: Maybe. This information was compiled in early April and all information is subject to change. Call the Legal Service Department at St. Ambrose Housing Aid Center at 410-366-8550, extension 209 with any questions you may have or to confirm that any of this information is still valid.

An Update from the Legal Department Regarding Water Bills and the Tax Sale

By Christina Ochoa

Every year when spring arrives, the lawyers at St. Ambrose begin to receive many worried phone calls related to May’s tax sale in Baltimore City. A tax lien certificate can be sold for an unpaid water bill, unpaid property taxes, or an environmental control board citation. The attorneys here have represented clients in informal hearings about disputed water bills in order to help homeowners avoid the tax sale and straighten out their bill.

Evelyn Anderson (left), a client who was facing a $1,300 water bill and Staff Attorney Christina Ochoa (right)

 

This year, things got a bit tricky, because in October of 2016 when the city switched from quarterly billing to monthly billing, they also eliminated the hearing process. As advocates it has been a very difficult transition because we have homeowners with bills into the thousands of dollars who would like to meaningfully dispute their bill with an impartial third party, but no longer have any mechanism to do so.

In response to these changes, St. Ambrose has become very involved with trying to initiate change and also work with the city in different individual cases. City Council President Bernard “Jack” Young and Councilman Robert Stokes called for an investigative hearing to be held where the Department of Public Works was to address several different issues, including missing bills, the informal conference, and erroneous bills. Advocates from other organizations as well as Baltimore City homeowners and business owners offered testimony as to the experience they have had with very high water bills and the general disorganization of the Department of Public Works. We called on DPW to reinstate a hearing process to protect homeowners from potentially losing their homes over an erroneous water bill. Charlotte Clarke, an attorney at St. Ambrose, went into detail about a specific property where the bill was over $44,000 and expressed the clear necessity of a hearing process to address this type of problem.

As of yet, no changes have been implemented. The tax sale occurs every year in May and the deadline to pay in order to avoid tax sale is April 28, 2017, so we are hoping for some meaningful resolution prior to that time. Through our tax sale workgroup, we have invited the Director of Public Works, Rudy Chow, and all the members of the city council to meet with us to discuss the city’s next steps. Hopefully our local government and our Department of Public Works will accept our group’s invite and come up with a solution that protects our residents. In the meantime, our team will remain committed to serving Baltimore residents in many different affordable housing related cases, including water bill disputes.

If you, or someone you know, is in need of free legal advice or assistance regarding a water bill or tax sale notice, please don’t hesitate to call us: 410-366-8550 x249 or email legal@stambros.org.

Or visit one of these upcoming clinics: 

Baltimore Sun article leads to an unexpected outcome for a St. Ambrose client

A story published in the Baltimore Sun last week highlights the struggles and stress that plagues Baltimore City Homeowners who try to contest atypical water bills through the Baltimore City Department of Public Works. St. Ambrose attorneys are working with the DPW and with Baltimore residents to provide guidance in navigating the process of challenging water bills. Since October, however, the appeals process that had been in place to contest water bills has been dismantled and residents’only option is to fill out a complaint form.

left to right: staff attorney Charlotte Clarke, St. Ambrose client Evelyn Anderson, staff attorney Christina Ochoa.  Baltimore Sun Video by Amy Davis.

The decision to eliminate the appeals process was not announced and poses a major threat to the housing security of many Baltimore City Homeowners who no longer have an opportunity to openly discuss erroneous bills. Our legal department works with clients every day who receive inexplicable water bills that range from a few hundred dollars to tens of thousands of dollars (Don’t believe us?). The elimination of the appeals process creates an especially grave situation as the tax sale deadline approaches and homeowners with unpaid water bills, even grossly inaccurate ones, run the risk of their home going into tax sale foreclosure.

Though city processes have a long way to go to become more equitable for residents, in the short term, much needed relief came for our client Ms. Anderson who was featured in the Baltimore Sun article and was facing a $1,300 water bill. An anonymous donor contacted St. Ambrose to arrange to pay the bill. In fact, eight people reached out to the agency to inquire about contributing to the bill and providing support for other clients who face the risk of losing their home due to water bills.

Staff attorney Christina Ochoa comments on the outpouring of support from the community, “in an industry where we’re so often the bearers of bad news, seeing people’s generosity was really uplifting.”

UPDATE: The Baltimore Sun published a follow up story here: Good Samaritans Step Up

Community Development Network Day in Annapolis

St. Ambrose Housing Aid Center is a member of Community Development Network of Maryland (CDN). CDN is a group that represents the interests of housing and community development organizations across the state. Although Maryland communities are diverse in so many ways, CDN unites community organizations on our shared goal of making our communities great places where people can thrive and have access to opportunities. The network gathered in Annapolis to meet with legislators and discuss some of the pending legislation this session that could improve and strengthen our communities.

left to right: Director of Housing Counseling, Cara Stretch; Staff Attorney Christina Ochoa; Special Assistant to the Executive Director/Compliance Officer, Phillip Westry

We heard from law makers and had the opportunity to connect and share our on-the-ground experiences as community development professionals. By providing testimony and education about how Maryland laws impact our clients, we can be confident that our legislators have an educated perspective to make decisions that will strengthen communities and people. Below are a few of the highlights from our state legislators and leaders:

House Appropriations Chairwoman Maggie McIntosh discussed the necessity of housing and addressing poverty if we are to expect strong education outcomes. Delegate McIntosh also emphasized the importance of passing the HOME act during this session to end discrimination in housing based on source of income only.

House Environment and Transportation Committee Chairman Kumar Barve commented that we can’t expect health outcomes or education outcomes to be achieved until we have a safe secure place to live. Many of the bills that impact the community development field are introduced in the House Environment and Transportation Committee.

Land Use and Ethics Sub Committee Chair Steve Lafferty reiterated the importance of the work of housing counselors in Maryland for not only foreclosure prevention, but also to prepare Maryland families for the future through homeownership counseling and financial literacy.

Maryland Department of Housing and Community Development Secretary Kenneth Holt emphasized the bright future ahead for communities across the state and discussed initiatives to reach the state’s goal of eliminating homelessness.

If you’re interested in learning more about the Maryland government and the general assembly, check out Maryland Manual Online .

If you’re interested in learning more about the work of Community Development Network check out their website here. 

 

Baltimore City Water Rate Increase – Flushing Your Money Down the Drain?

By Charlotte Clarke, Senior Law Clerk

Earlier this summer, the Baltimore City Department of Public Works (DPW) announced a three year plan to increase water rates by almost 33% by 2019: 9.9% on October 11, 2016, 9.9% on July 1, 2017, and 9.9% on July 1, 2018. DPW Director Rudy S. Chow announced in late August that the final quarterly water bills will arrive for city consumers in September, and the new monthly billing system will start in October.

The stated purpose of the increases is to cover the cost of various water and wastewater capital improvements, pursuant to the Director’s duty to recommend rates and charges so that water utilities are self-sustaining. On its website DPW explains that the average age of the City’s large water mains is 75 years, and renewal or replacement is required in many sections. There are also additional costs associated with the new BaltiMeters, which are promised to ensure accurate and timely meter readings and to overall be more customer-friendly.

Valid as some of these reasons may be, they all sound vaguely familiar. In July of 2013, rates went up by 15% to fund the new state of the art  BaltiMeters and billing system. The increase “ensured” faster repair and replacement of aging infrastructure. In 2014 the rates increased by 11% in order to replace water mains and provide more accurate and reliable water meters, and to improve the billing system. DPW has also publicly stated that in the last 19 years they completed almost 20 miles of water main replacement and rehab.

It is hard not to wonder how the increased funding from prior increases was spent, and how it is that so much more new funding is already required. Does it really cost 33% to create a more customer friendly system? Aren’t there alternative ways to make the system more customer-friendly?

In addition to begging these questions, the new rate structure itself is also puzzling. The old rate structure applied a minimum quarterly charge set by meter size, and it was assessed until the property was formally abandoned, plus a consumption charge that is calculated by cubic feet of water use (units). DPW explained that with the new rate structure they are eliminating the quarterly minimum charge. According to the Board of Estimates Agenda for July 27, 2016, the new water bill is determined by applying a variable rate to each customer’s consumption and adding a fixed rate component. It seems like the DPW is simply replacing the terms “minimum quarterly charge” with “fixed rate component,” because essentially they are identical terms that add a standard charge to everyone’s bill.

Apparently this new structure will encourage water conservation and ensure that bills are more accurate. However, the new structure applies the same rate per unit to all users and replaces the declining block rate which gives a lower rate per unit of water for those using very large volumes of water. How does this encourage water conservation? If those who are using a large consumption of water have a lower rate per unit, how does that encourage one to use less water?

So where did all the money go from the rate increases last year? The rate increases last year did not provide better customer service or more accurate billing. The Legal Services Department at St. Ambrose regularly receives calls from city residents similarly complaining about high water bills which DPW is unable to justify. The informal water conference process in place to dispute such bills was a non-judicial process in which evidence was scarce and there was no right to appeal the hearing officer’s determination. This process routinely left homeowners stuck with high bills and without any further way to contest them.

There is clearly a drastic need to reform the DPW and the billing system beyond simply turning quarterly bills into monthly bills. As of now it is unclear how the rate increases are necessary for reform, or what the full scope of the reform will be. According to the Board of Estimates Agenda for July 27, 2016, DPW began testing the new system and started training their employees on its use. However, an employee from St. Ambrose Housing Aid Center recently spoke with individuals in the DPW billing department and customer service department. She asked various questions about the specifics of the new increases and no one could provide any information whatsoever in regards to the increases.

We at St. Ambrose Housing Aid Center hope the reforms bring improved accuracy in billing, a meaningful appeals process to contest erroneous billing, and clarity as to how the rate increases help achieve these ends. Our organization deals with water billing regularly, as we provide services for low to moderate income families with housing needs. Many of our clients will be greatly impacted by this massive increase in their water bill because they are already struggling financially. Last year we represented a client for his water bill hearing. He hoped to adjust his water bill because his water meter was replaced five times and still continued to provide faulty readings of his family’s consumption. In the end, with the help of St. Ambrose Housing Aid Center, the bill was reduced by over two hundred dollars which made a huge difference for our client and his family. However, not all residents are so lucky in challenging extremely high water bills. The city often refuses to adjust their bills leaving struggling homeowners in risk of tax sale.

St. Ambrose Housing Aid Center will always provide help or guidance to those struggling with their water bills, but we also provide housing counseling services, affordable rental housing, homesharing services, and legal services relating to housing. Not only will this rate increase affect low to moderate income families, but also the organizations that are trying to help these families secure stable, affordable housing. We understand that sometimes rate increases may be necessary, but the families who bear the burden of these increases deserve transparency and results.

Summer Learning at St. Ambrose

When summer rolls around, many college kids are eager to be free of commitments and head to the beach. These students, however, wanted to do something more meaningful with their time. Here are four students who are spending their summer interning with St. Ambrose.

Tasayeh Nickens,

Housing Development Intern

Tasayeh goes door-to-door in Belair-Edison, conducting surveys and collecting valuable opinions and impressions from community members about Belair-Edison.

Tasayeh heard about St. Ambrose from a friend who interned here last summer. “She was able to connect me with  Jill, who found me a position.”

She knew St. Ambrose would be the perfect fit. “I did my research about St. Ambrose and found what they really did interesting and very positive things for the community. I really like what they value; rehabbing homes, that’s something I’m really interested in. It really helps people who aren’t as able to purchase homes.”

Her favorite part about her internship is “being able to interact with the people in the community and hearing what they have to say about what’s going on in the city.”

During the school year, Tasayeh attends University of Alabama, where she studies social work. “I plan on becoming a licensed, clinical social worker, and I plan on working at a hospital doing medical social work. I also want to get my masters degree in social work and public health.”

Tasayeh feels that her experience at St. Ambrose is giving her a taste of the social work field “because they’re advocating for the people and the community.”

Courtney Watkins,

Law Clerk

Courtney works in the Legal Services Department and drafts deeds, conducts crucial legal research, and connects clients to attorneys.

Courtney plans to become a lawyer through her studies at University of Maryland  Francis King Carey School of Law. Because of her interest in housing law, a career development coach directed her to St. Ambrose. “I don’t think I could have gotten the same experience elsewhere.”

“I really like that in public interest you have more hands-on work than say, at a big firm where you’re just doing legal research. I really like the experience that I get to be doing the work myself rather than just whispering in an attorney’s ear something that I found online.”

She’s trying to figure out what kind of lawyer she wants to be. “There are still so many avenues I want to explore. That’s why I’m really excited I’ve gotten to try out family law this summer.”

Karly Horn,

Homesharing Intern

Karly personally follows up with each Homesharing client to ensure their satisfaction and is helping the department go paperless.

She recently spoke with someone who was first matched with their homesharer nearly 15 years ago. They now consider their homesharer “part of the family.” Karly’s favorite part about her work with St. Ambrose is “hearing what the program I’m part of is doing for people.”

At University of Richmond, Karly is majoring in leadership studies and minoring in history. An alumna suggested she intern at St. Ambrose, thinking it would provide her with the perfect experience. Karly structured her own interdisciplinary program for the summer, incorporating 4 internships. “I wanted to see how nonprofits are structured.”

Karly is still trying to determine her career path. “I want to help people, I just don’t know in what capacity yet.”

Maegan James

Resource Development Intern

Maegan collects stories from clients and staff alike to share for St. Ambrose’s upcoming 50th anniversary.

She connected to St. Ambrose through her summer fellowship, Walter Sondheim Jr. Maryland Nonprofit Leadership Program. “I grew up in Baltimore and have seen firsthand how housing issues can affect members of our community. St. Ambrose drew me in because they do so much to provide homes for people, making our city stronger as a whole.”

“I love that every day I hear firsthand stories from clients whose lives have been changed by the amazing people at St. Ambrose.”

Maegan hopes to serve in the Peace Corps after graduation. She knows that she wants to dedicate her life to public service, but is unsure what direction it will take her. “I know that whatever I do, I’ll always look back at this summer and think about the valuable skills I learned here at St. Ambrose.”

 

St. Ambrose Housing Aid Center Legal Program helps Homeowners in Foreclosure

By Joe Surkiewicz

Feb. 3, 2016

A version of this article appeared in the Daily Record

Low-income people struggling with the loss of their homes to foreclosure are not only scared and confused. They are also vulnerable to predators.

“It’s because foreclosure proceedings are in the public record,” said Christina Ochoa, a staff attorney in the Legal Services Program at the St. Ambrose Housing Aid Center. “They often are scammed.”

One client for example paid $1,500 to attorneys in Florida to help her with a loan modification procedure in Maryland—and had nothing to show for it.

“They were actual, real attorneys!” Ochoa said. “It was very scary. After we filed a complaint with the Florida bar, we managed to recover the money. The client believed anyone who said they could help her. That’s just one example of the kinds of predatory people out there soliciting desperate, scared homeowners.”

St. Ambrose’ Legal Services Program provides housing-related legal services geared toward the preservation of housing, mostly with issues such as foreclosure, landlord/tenant disputes, title issues, and  tax sales.

“We see ourselves as an open door for people at risk of losing their homes,” said program director Owen Jarvis. “We’re here to serve low-income people who can’t afford an attorney.”

With its small staff—currently, two full-time lawyers (and soon a third) and a paralegal—the program helps over 800 people a year.

Legal services include brief advice, negotiating and even litigation. “And it’s all free or very low cost,” said Jarvis, who recently took over management of the program. “Our staff is small, but despite our limited resources we still manage to help a lot of people.”

Not surprisingly, foreclosure is still the number one legal problem.

“But it’s rarely an isolated issue,” Jarvis noted. “A common call that we get is a request for help in getting answers from the bank and asking us how long they can stay in their homes. It can be very unclear what the real threat is.”

The lawyers explain to frightened callers where they stand in the long foreclosure process, and provide peace of mind that foreclosure proceedings are a long process, and that it’s unlikely that anyone will coming to change the locks on the doors in the immediate future.

“A conversation on the phone with us can be very valuable in explaining the options,” Jarvis said. “The information available online or in mailings can be difficult for a homeowner to relate to his or her specific matter.”

The legal program works closely with St. Ambrose’ team of housing counselors, who assist clients with preparing documents for loan modifications and coaching them on budgets to achieve a sustainable modification. If legal questions arise, they are passed to the lawyers.

In addition, the program employs a community liaison (currently part-time, but soon to become full-time). The liaison attends community meetings to make people aware that legal help is available.

“He lets us know what people want, so that we can tailor our services to their needs,” Jarvis added. “We’re building on the work of our previous managing attorney, Jeanette Cole, and the great work she did during her three years here. We hope to see the number of cases grow.”

While foreclosure is the biggest issue now, eventually that will shift.

“Other prevalent housing-related legal problems  include tax sales, landlord/tenant disputes, and issues faced by seniors such as  reverse mortgage defaults,” Jarvis said. “Baltimore City is our focus, although we also take calls from the surrounding counties.”

Take tax sales, where low-income homeowners often lose their homes over unpaid water bills. One client, herself a criminal defense lawyer, had her home mistakenly sold in a tax sale.

“But the city had miscalculated,” said Ochoa, the staff attorney. “Although she was a lawyer herself, she didn’t know the process. We got her the information she needed with a couple of phone calls. She was so confused, and we really helped her.”

Most of the program’s funding  has been  from the Maryland Legal Services Corp., the City of Baltimore, and the Department of Housing and Community Development.

“For clients, it’s a lot of small victories,” Jarvis said. “Often, they just can’t get answer from a bank. They make the phone calls, but they’re not answered or returned. We’re able to get them answers and help them.”

Jarvis foresees 2016 as a year of growth for the program. “We’re very dedicated to community outreach,” he said. “We  want local residents facing house-related legal issues who cannot afford an attorney to know that we are here and we can help.”

To contact the legal program, call (410) 366-8550 and ask for extension 249.

 

5 Reasons Why You Shouldn’t Add Someone to Your House Deed

St. Ambrose Legal Services has received an influx of calls from city residents who have been advised to add a relative’s name to their house deed. The common misconception is that adding someone to the deed will protect your home for your heirs. Below are five reasons why adding a loved one to your deed is not a smart way to protect your investment.

1. Loss of control– Adding anyone’s name to your deed makes the other person a co-owner of the property. If you decide to sell the property and the co-owner does not agree, then you cannot sell.
2. Inheritance by others– If your new co-owner dies before you do, then that person’s interest could pass on to someone else.  You could end up owning the house with one or more people.
3. Exposure to creditors– Your house is exposed to the debts or your co-owner. Likewise, if the co-owner has tax issues or they are sued and lose, a lien could be placed on your property. A lien on your house could force it to be sold.
4. Taxable gift – Putting someone’s name on your deed is legally a gift that could require a federal gift tax return.
5. Medicaid Penalty– If you give someone an interest in your home, it could trigger ineligibility for Medicaid benefits in the event you need nursing home care.

Adding a name to your home is risky.  The safer alternative is to draft a Will that leaves your property to the person of your choice. Seniors in Baltimore City can get a free Will through the Bar Association of Baltimore City: 410-396-5277.

10 Things to do if You are Facing Foreclosure

Based on MD DHCD 2014 4th quarter Foreclosure report

The St. Ambrose Legal Services department has compiled the following tips for what to do if you’re slipping towards foreclosure: 

1. Ask for help as soon as you realize you are in financial trouble. The sooner you ask, the more likely you are to get the necessary support to resolve the problem.

2. Stay in contact with your bank/lender so that they are aware of your situation. If you are upfront and transparent about your financial situation, your bank will better understand your needs and interests.

3. Do not pay fees for services to assist you with your financial situation when the service is available for free. Thoroughly investigate anyone who is charging you for financial services and what they are doing for the fees.

4. Take advantage of free services! The state and the banks will inform you of free counseling and legal services that are available to you.

5. Do not take advice from friends, neighbors, or family, unless they are trained in financing.

6. Open all of your mail, promptly. Don’t assume you already know what’s inside.

7. There is no way to get out of the debt obligation. Don’t bother looking for a way out. Instead, determine if a loan modification is a viable option for you.

8. Understand your responsibilities under the debt obligation. A deed of trust is the same thing as a mortgage. A deed is the document that transfers ownership of real estate.

9. Know your rights and don’t sign any contracts unless you fully understand the document. You may be offered a ‘friendly foreclosure’ at mediation, but thoroughly research the implications of this sort of agreement before signing any contract.

10. Do not think the problem will just go away. If you cannot afford your house, start considering what next steps you will take in order to find a new living space.

The threat of foreclosure can be intimidating, but being informed of your rights and responsibilities can make the process easier. Going through a foreclosure doesn’t mean losing everything. If you remain informed and proactive throughout the process you’ll be able to salvage the maximum amount of your investment. Find help, resolve the problem, and look ahead to life after foreclosure. Call St. Ambrose for free legal advice and foreclosure counseling: 410-366-8550