In a recent Baltimore Sun op-ed, BlueHub Capital CEO Elyse Cherry offers her perspective on the current housing crisis in Baltimore. She also explains how our BlueHub SUN foreclosure prevention program successfully helps those who continue to bear the effects of the housing crisis in Baltimore and beyond.
“What we offer is not a handout, but rather a way to help families meet their obligations, repair their credit and build stable lives and communities,” Cherry said.
Cherry makes clear that the ongoing housing crisis affects not just individuals and families, but entire communities. Despite a thriving national economy and rising home sales across Maryland, some Baltimore neighborhoods are still feeling the effects of the mortgage crisis. High rates of foreclosure-related evictions in certain areas are leading to dislocations, job losses, and community disruption.
Analysis from Attom Data Solutions shows that Baltimore has the highest share of distressed home sales of any city in the country. More than 20 percent of homes sold in Baltimore during the second quarter of 2018 were distressed — foreclosed, bank-owned, or involved in a short sale. Foreclosure can be catastrophic for homeowners who default, as they face disruptions in employment, schooling, and family life. Empty homes attract vandals and criminals, increasing costs for police and social services. This crisis affects entire communities, causing a decline in vibrant institutions like churches, schools, and shopping districts.
BlueHub Capital has developed a proven strategy to help families devastated by foreclosures. We negotiate with mortgage issuers to acquire properties before evictions occur, buying houses at distressed market value and selling them back to families at affordable prices. On average, the program reduces monthly mortgage payments and principal balances by nearly a third. To date, BlueHub SUN has helped more than a thousand families in seven states stay in their homes.
Programs like ours bring together borrowers, financial institutions, community organizations, and investors to shore up neighborhoods gutted by evictions. Let’s work together to keep Baltimoreans in their homes and make the city a safer, more vibrant place for everyone.