Since last year, 50 families a week have lost their homes to foreclosure in Baltimore City — depressing real estate values by $900 million.

Baltimore City and the Baltimore Homeownership Preservation Coalition have partnered to help homeowners and buyers spot predatory lenders and practices before they become their victims.

“Home foreclosure is an issue that can easily undermine the great success realized in neighborhoods throughout Baltimore City,” Mayor Sheila Dixon said. The pair have produced a new educational DVD titled “Judge Smartt,” which is designed to help consumers identify lending practices that can lead to excessive housing costs, potential foreclosures and predatory real estate practices. “Judge Smartt” uses a Court TV format and a humorous approach to get the information across to viewers.

Last year, lenders filed more than 3,200 foreclosure procedures in the city, according to the Baltimore Neighborhood Indicators Alliance. Of that number, 75 percent went to foreclosure. That translates to 2,500 homes lost in 2006.

This story continues below
Advertisement

“Luring uninformed families into loans that are unaffordable from the get-go is a disaster for the families who wind up in foreclosure and the neighborhoods that are left with abandoned houses,” said Vincent Quayle, executive director of the St. Ambrose Housing Aid Center.

With the aid of a $400,000 grant from Baltimore City’s Housing department and matching private support from sources such as the Baltimore Neighborhood Collaborative, more than 1,200 homes have been saved since the program was launched in September 2006. In addition, the city has lent its 311 helpline to provide residents to access a 24-hour toll-free hotline that connects them to free counseling services.

“Homeownership is not just an end in itself — it is a vital element of neighborhood stability and statistically the best means for helping lower- and moderate-income families build substantial assets, so we need to focus on making homeownership sustainable,” said Carol Gilbert, GHPC co-chairwoman.

The DVD will be distributed throughout community groups, housing counselors and other partners in the coming year in order to help prevent foreclosures.

rchappelle@baltimoreexaminer.com