Baltimore Mayor Martin O?Malley announced a new program on Wednesday to help city homeowners avoid foreclosure.
“For the first time in 30 years, Baltimore is growing again,” the mayor said in statement. “And we can?t allow high foreclosure rates to slow us down.”
The program, which will allow homeowners facing foreclosure to call 311 for referrals to credit counseling, is a partnership between the city and the Baltimore Home Ownership Preservation Coalition. Coalition spokesman Tom Waldron said foreclosures have cost Baltimore $1.8 billion in reduced property values in the past two years.
“When a house is foreclosed on, it loses its value and affects property values throughout the neighborhood,” he said.
Waldron said studies have shown that foreclosures have a ripple effect, causing property values to drop in nearby homes. The coalition, Waldron said, will be workingwith several local nonprofits and the city government to spread the word that help is available.
“The biggest problem is getting people in arrears on their mortgage to get help,” he said. “Sometimes they are in denial, but we want them to know if they seek help they?ll get it.”
Callers to the city?s 311 line will be referred to Saint Ambrose Housing Aid center for credit counseling and foreclosure prevention counseling.
Funded by $800,00 in federal grants and private donations, Waldron said the program has worked in other cities, including Chicago.
