Consumer Credit and Debt Consolidation Wilmington Delaware - PDF

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					                                     January 2009                          Vo l u m e 1 4                   Issue 1               1-877-825-0750

                             Delaware CRA News
Consumer Finance
       A d vo c a t e

                               A Quar terly Publication of the Delaware Community Reinvestment Action Council, Inc .

                                                    Diana Bernal with Ravi Rangan, Lori Spagnolo with Rony Peralta,
                                                           Jayne and Dom Pedante dancing the night away,
                                             Angela LaManna encouraging Silent Auction bidders at our annual holiday party

     DCRAC, Inc.
     601 N. Church Street                                                                                                Non Profit Org.
     Wilmington, DE 19801
     1-877-825-0750 or 302-654-5024                                                                                     U.S. Postage Paid
                                                                                                                        Permit No. 1515
                                                                                                                         Wilmington, DE

               2         Letter from our Chairman and more pictures

               3         Jessica Mallamace: the 2009 Money Goals
                                                                                                                                                                      Fo u n d e d i n 1 9 8 7
                                                                                                                                               Designed by Christopher Mears for DCRAC, Inc.

               4         Mortgage crisis and a few responses
               5 to 8 Annual Report: 07-08

               9         Cancellation of Debt/DCRAC upcoming series
               10        DCRAC Calendar 2009
               11        DCRAC Asks & Silent Auction thank yous
               12        N o d e j e p e rd e r s u cas a

                        Our mission is to e n s u re e q u i ta b l e t reat m e nt a n d e qu a l a c c es s to c red i t a n d ca p i ta l
                             fo r t h e u n d e r- s e r ved p o p u l at i o n s and communities throughout Delaware
                                         through Advocacy, Education, Legislation, and Outreach.
                                 Volume 14                                     Issue 1                                         Page 2

                                                            Dear friends:
  L e t t e r f ro m D o m

                                                            With renewed optimism, we approach the inaugurations of our
                                                            State and National officials. We are not so naive to think that a polit-
                                                            ical change will eliminate all the problems with our current econo-                      8
                                                            my. However, we do understand that legislation is one of the effec-                      7
                                                            tive methods to promote equality and access to credit and capital                        7
                                                            for all citizens.                                                                        -
                                     Domenic Pedante
                                      & the rest of the                                                                                              8
                                                            DCRAC, as our mission states, believes that the inter relatedness of
                                                            advocacy, education, and outreach; coupled with legislation, can                         2
                                       Anthony Albence      bring about the changes needed for all people. For that reason, we                       5
                                    Charles Brittingham     will continue to promote our education agenda through Money                              -
                                             Carol Davis    Matters! seminars, tax clinics in the community, and credit counsel-
                                          Austin Edison
                                                            ing sessions with individuals. We will continue to monitor the
                                         Juana Fuentes-                                                                                              7
                                                            bailout of banks and consolidation of financial institutions, we will
                                                            react to legislation in the best interests of our community, and we                      5
                                              Joan Fultz
                                      Susan Haberstroh      will advocate for fair treatment in lending for all people.                              0
                                        Michelle Harris
                                           Nancy Lopez      Now is not the time to rejoice in change alone, but rather, it is the
                                      Gwen Miller-Reilly    time to seek ways which change can improve the lives of everyone
                                               Joe Myer
                                                            in our communities.
                                        Harold Stafford
                                     Anthony B. Wright
                                      General Counsel
                                     Matthew Lee, Esq.

                                        The Honorable
                                      James H. Sills, Jr.

                                      Founded in 1987

Diana Bernal, Angela LaManna,
Jessica Mallamace, Rony Peralta,
                                                                                                                                                w w w. d c r a c . o r g
Rashmi Rangan, and Lori Spagnolo
DCRAC Volunteers
Jim Angus, esq., Carol Andrea Charry,
                                                                                  IRS Commissioner Douglas Shulman with Rashmi, Jim
JoAnn Griffin, Lulu Maseko, Chris Mears,                                          Angus with Rashmi & Angela, Dom Pedante, Gerry Kelly &
                                                                                  Terri Hasson, Councilman Potter, Ravi, Rashmi, Jessica with
LeAnn Pedante, Artika Rangan, and Ravi
                                                                                  hubby Ralph & daughters, and Daryl Graham.
Office cats

                             Should you find yourself in a chronically leaking boat, energy devoted to changing vessels
                                      is li kely to be more productive than energy devoted to patching leaks.
                                                                   Warren Buffett

                             Volume 14                                    Issue 1                                      Page 3

                                                                                    We hope we can help you make and keep your
                           January         Set financial goals/Attend classes       money resolutions. As we face these tumultuous
        The 2009
M o n ey c a l e n d a r

                           February        Establish workable budget                economic times, perhaps we should shift our focus
                           March           Order and review credit report           to our very own pockets whose lining has depleted
                           April           Free File your taxes                     to the fuzzy little lint balls you find after they come
                           May             Plan to use refund effectively.          out of the dryer. Really, many of us get excited now
                                           If you had to pay taxes, review          to find loose change in the washer.
                                           your withholding.
                           June            Consolidate student loans                Did you know that the average savings account now
                           July            Do a mid-year financial check up         calls for 6 months of “bill money” set aside for that
                           August          Review auto (purchase and                rainy day? No time to start like the present. Log on
                                           insurance) needs                         to and see what FREE
                           September       Homeownership/Refinancing?               financial classes are offered in your area. Attend
                                           Think Housing Counseling.                one. Don’t procrastinate.
                           October         Update your will
                                                                                    Establish a simple realistic budget. To effectively
                           November        Review healthcare and investment
                                                                                    create one, be honest with yourself. I have
                                                                                    preached the needs vs. wants doctrine. But, do we
                           December        Consider donation to a charity
                                                                                    as consumer driven Americans honestly separate
                                           (hope we make your list)
                                                                                    the two?

                                      Of the two certainties in life, for only one you can get an extension.
                           If you cannot file your taxes by April 15, get an extension and avoid failure to file penalty.

Track your spending-every dime of it for a month.                      accurate? Is it something that was supposed to have
Throw those receipts in a shoe box. Didn’t get one at                  fallen off? Don’t understand it? Call DCRAC, we can
the soda machine? Make your own. You will be sur-                      go through it with you.
prised at the end of the month. Don’t know how to
budget? How about the envelope system? Place your                      Did you know that Delaware has many housing coun-
bills in the envelope for the month in date order.                     seling agencies? They are needed now more then
Once paid-file them away but, before you do, use                       ever!! Please, if you are thinking about buying a
them to create your next month’s projected budget.                     home or are struggling to keep it-call them.
Can’t find anywhere to save? “$.47 of every food dol-
                                                                       Money is just basic math and wordy definitions.
lar is spent on dining out” Wikipedia. Need I say
                                                                       Please, do not miss out on the opportunity to invest in
more? I don’t even have the space to site the health
                                                                       yourself, your future, and your family’s future. Call
                                                                                                                                     Je s s i c a M a l l a m a c e
factors associated with eating out. Try budgeting for
                                                                       you HR Department. Get your benefits packet. Use
futuristic healthcare bills down the road when your
                                                                       the “open enrollment” to make changes to your plan.
cholesterol skyrockets and your arteries are clogged
                                                                       The plan may include stocks, bonds, IRA’s, and profit
with the consistency of that giggly lookin’ fat stuff that
                                                                       sharing. Become informed. Don’t stick your head in
your gravy turns into overnight in the fridge.
                                                                       the sand because when you pull it out-much financial
Tax season is “The most wonderful time of the year”                    security will have passed you by.
to run those free credit reports forms all three
bureaus. Take a hard look at it-remember some sim-                     I hope you have a safe, happy, and financially
ple guidelines. Is it all yours? Is the debt information               informed and secure New Year.

                   Money never made a man happy yet, nor wi ll it. The more a man has, the more he wants.
                                        Instead of fi lling a vacuum, it makes one.
                                                    Benjamin Franklin
                                    Volume 14                                      Issue 1                                    Page 4

                                   The Problem:                                              failure to regulate, caused this crisis are now making
                                   An unprecedented economic crisis is devastating           deals and regulating in the middle of the night with
              too small to count

                                   our communities where the modest income families          announcements on Monday morning without so
                                   are the hardest hit. Homeowners are losing their          much as a rationale or legal basis for their decisions
                                   homes to foreclosures. Tenants are being evicted          other than emergency powers!
                                   through no fault of their own. Job losses are rising.
                                   Vacant properties are straining the economic, social,     Three sensible steps that should to be taken:
                                   and moral fabric of our community. Cost of living is      1. Six Month Moratorium on Foreclosures: The
                                   burdening us with every passing day. Businesses--            federal government must mandate a loan modifi-
                                   the economic engines of our society--are facing a            cation that include interest rate adjustments and
                                   gloomy future. The credit crunch is devastating              reduction of principal.
                                   every one.                                                2. Save Neighborhoods too: The federal govern-
                                                                                                ment should mandate that the “Bailout”money
                                   The Governmental response:                                   be used for lending--not mergers and acquisi-
                                   The limbs are shattered and bleeding. Instead of a           tions.
                                   tourniquet (helping neighbors), the government            3. Give Bankruptcy Judges the Authority to resolve
                                   performed an open heart surgery (bailing out the             the crisis: Bankruptcy judges currently have the
                                   banks). The Emergency Economic Stabilization Act             authority to adjust all loans, except mortgages on
                                   of 2008 or the infamous $700 billion bailout pack-           owner-occupied properties, to create an afford-
                                   age fails millions of Americans. Regulators, whose           able repayment plan for the troubled borrower.

                                                        When you dig yourself in a deep hole, stop digging.
                                                               Seek help from reputable sources.

        Countrywide: Bank of America has announced                              A range of solutions for the homeowners with reliable
        Nationwide Homeowners Retention Program for                             incomes to offer them affordable payment options to
        Countrywide Customers. The Program will systemati-                      remain current on their payments.
        cally modified troubled mortgages with up to $8.4             
        Billion in interest rate and principal reduction for near-
        ly 400,000 Countrywide Financial Corporation cus-                       Chase
        tomers nationwide.                                                      To keep families in homes, including systematic review                       of entire mortgage portfolio, enhanced programs seek
        ceEN.html.                                                              to help an additional 400,000 families; with families
        Customer Contact General Info: 1-800-669-6607.                          already helped, total foreclosure preventions project-     announce some help
        Homeownership Retention Division: 1-800-669-6650.                       ed to top 650,000; $110 billion in mortgages to be
                                                                                modified. The plan calls for proactive outreach to bor-
        Citi: Initiatives build and accelerate Citi’s comprehen-                rows, offering them prequalified modification terms in
        sive loss mitigation efforts, which prevented approxi-                  writing. They pledge that no additional Chase-owned
                                                                                                                                                 A f ew l e n d e r s

        mately 370,00 foreclosures representing over $35 bil-                   loans will be put into foreclosure process while
        lion in loans since early 2007. Citi Homeowners                         enhancements implemented. The program applies
        Assistance Program includes extended foreclosure                        only to owner occupied properties with mortgages
        moratorium practices, preemptive Outreach to Citi                       owned by Chase, WaMu or EMC, or with investor
        borrowers with a goal to help the customers avoid                       approval.

                                     In the confrontation between the stream and the rock, the stream always wins-
                                                     not through strength, but through persistence.
                                                                        Budd ha
                                      Volume 14                                     Issue 1                                    Page 5

                                     DCRAC was founded in 1987 as a non-profit citizens’      So, we can sit back today and say we told you so.
                                     advocacy group with a charge to keep an eye on           But, our mission and the spirit of our service would
 Ju l y 2 0 0 7 t o Ju n e 2 0 0 8
             Annual Report

                                     financial institutions. Looking at today’s economic      not allow us to do that. Instead, we have been
                                     crisis, you may wonder what happened. Did we             building our capacity so that we can meet commu-
                                     drop the ball? In meeting client needs, did we lose      nity needs that we foresaw.
                                     our advocacy focus? Good questions to ask of an
                                     agency that prides itself to public accountability.      We knew that in the face of a housing crisis, gov-
                                                                                              ernment would respond with a bank bailout. In
                                     No, we did not drop the ball. In fact, we sounded        fact, that was one of our reasons for opposing bank
                                     the alarm about the impending foreclosure tsunami        mergers--banks will be too big to fail and once again
                                     nearly five years ago. We raised issues of predatory     taxpayer funds will be ill-used. We knew that with
                                     lending to our regulators during bank mergers argu-      the collapse of the housing market, we will feel its
                                     ing that predatory lending was a safety and sound-       impact in every sector of our economy. We knew
                                     ness issue. Do you remember that we were the             that Delaware was (and is) ill-prepared to handle
                                     only agency in Delaware that raised any concerns         the fall-out. We are ready to face the challenge
                                     about the Bank of America’s acquisition of MBNA?         ahead of us. We hope you will become part of
                                     Do you remember that we took on payday lending           helping us head off the next financial nightmare
                                     by our regulated financial institutions and succeed-     headed our way in form of credit card and reverse
                                     ed in forcing them out of charter renting?               mortgage crisis.

                                           To help us go far, quickly, won’t you consider becoming part of a solution?

Low Income Tax Clinic                                                            Housing Clinic
In 2003, we became a low income tax clinic to assist                             In 2000, we became a HUD recognized fair housing
Delaware taxpayers resolve their tax debts. We saw                               agency. In response to the foreclosure crisis we are
many taxpayers on fixed incomes unable to make                                   facing, we began gradual assistance to homeowners
ends meet when their wages were levied to pay tax                                facing foreclosures. As a result, in addition to educat-
debts. We saw many seniors make the cardinal mis-                                ing consumers about their fair housing/fair lending
take of early IRA withdrawals without fully under-                               rights, we began educating consumers about how to
standing the tax implications. We saw many self-                                 modify their existing predatory mortgages. We
employed taxpayers struggling to meet IRS’s strict                               helped more than 20 families navigate their way
proof requirement during their audits. We saw                                    through housing, foreclosure, and lending issues.           Ta x & H o u s i n g C l i n i c s
earned income credit related refunds frozen or with-                             When we receive a fair housing complaint, we for-
held. In this past fiscal year we helped 24 taxpayers                            ward it to Delaware Human Relations Commission
address 62 different tax issues. Without our free                                (FHAP). If the complainant does not wish to file a
assistance, many would have been left financially                                complaint, we will provide a summary of the case so
more insecure. Our pro bono panel helps us provide                               that FHAP is aware of a possible violation. In addition
access to representation to the lower income                                     to fair housing complaints, we handle fair lending
Delawareans. We also worked closely with Taxpayer                                complaints where the consumer received an unfair
Advocate and Senator Biden’s office to address more                              loan or the lender is collecting on the loan in an unfair
complicated tax questions and situations. During tax                             manner, along with complaints resulting from contrac-
season, we announce other assistance available on                                tor fraud. During the month of April we engage in
our radio and television programs.                                               extensive and aggressive outreach campaign.
                            I have been impressed with the urgency of doing. Knowing is not enough; we must apply.
                                                   Being wi lling is not enough; we must do.
                                                                Leonardo da V inci
                              Volume 14                                     Issue 1                                 Page 6

                            Categories                Kent              New Castle              Sussex            Total
                            Under 18                               0                       16                 0                     16
 M o n ey M a t t e r s !

                            18 to 42                               27                     137                61                   225
                            42 to 62                               0                       24                 0                     24
                            No info on age                        231                    1135               710                  2076
                            Female                                146                     881               182                  1209
                            Male                                   67                     346               480                   893
                            No info on gender                      45                      85               109                   239
                            Under 30% median                      222                     813               643                  1678
                            30% to 80% median                      4                      201                 4                   209
                            Above 80% median                       0                        7                 0                       7
                            No income info                         32                     291               124                   447
                            Asian                                  0                        4                 9                     13
                            Black                                  84                     465               141                   690
                            White                                  70                     238               215                   523
                            Latino                                 10                     195               126                   331
                            Other                                  1                       21                 8                     30
                            No race info                           93                     389               272                   754
                            Totals                                258                    1312               771                  2341

We are also present on the radio and TV                                 Special guests included: Kim Kendrick, Assistant
We have recently learned that the fate of Channel 28,                   Secretary for Fair Housing and Equal Opportunity at
our local programming sta on, remains uncertain for                     HUD, Mark Randolph, Charles Po er, Gary Pollio and
2009 (there are conflic ng reports). We are greatly                      Paul Calistro, Mary DuPont, Gregg Semanick, John
disappointed about the loss of this tremendous                          Bravacos, and Elvis Solivan, Brian Finn, and Narina
resource that allowed us to air live and send our dubs                  Bch kian. With this exper se, DCRAC helped educate
to Kent and Sussex coun es. We con nue to seek                          viewers about such topics as: fair housing and home
opportuni es to broadcast our educa onal messages                       ownership, credit scores and credit building, small
and informa on to Delawareans. Moreover, we                             business management, tax issues, and foreclosure
would be remiss if we did not thank Comcast for all                     preven on and op ons.
their past support, with a special acknowledgement
for the work of Jay Gosey, who has done so much for                     Radio programming also provides an effec ve avenue
DCRAC in previous years, and always with a smile.                       to reach DCRAC’s cons tuents each week. A 2-hour
Thank you Jay!                                                          program on Saturday mornings on WRBG, an hour of
                                                                        Spanish radio on the last Wednesday and an hour of
Delawareans have welcomed us in their homes since                       addi onal me to air our TV program allows us to
                                                                                                                                Radio & TV

February of 1999 when we launched our TV program.                       share 128 hours with our world wide listeners. Topics
During the last fiscal year, we aired 13 hours in New                    covered included: money management, debt collec-
Castle and 65 hours each in Kent and Sussex. We es -                     on, tax laws and planning, foreclosure preven on,
mate that at the conserva ve end, we reached 14,000                     the home-buying process, fair housing laws, iden ty
Delawareans.                                                            the , and consumer protec on.

                                             When we long for life without difficulties, remind us that
                                    oaks grow strong in contrar y winds and diamonds are made under pressure.
                                                                   Peter Marshall
               Volume 14                                           Issue 1                                   Page 7

             Economic Impact Campaign                                     Fair Finance Campaign
             We acquired a vacant                                                         We worked furiously on the charter

             building, hired a con-   Posted Sunday, January 6, 2008 in the News Journal, application for the proposed Stepping
                                                         Editorial Page.
             tractor, argued for a                                                        Stones Community Federal Credit
             zoning variance permit,                      OUR VIEW                        Union. In addition to identifying,
             applied for financing,   City neighborhood finance center profits from recruiting, and training new board
             got grant funds from                     far-sighted donors                  members, we worked diligently to
             Welfare and Longwood Too often the public perception of charitable           make our pro forma work for us!
             and turned it into a    giving is limited to the necessities of subsistence While it would be October 6, 2008
             warm, welcoming, cen- -- provisions of food, clothing and shelter.           before we submit the application, we
             ter for the community.                                                       did not put this too far on the back
             Hope you were here on But next-step giving -- to enable the down-and- burner. Amazingly, the interest from
                                     out to become contributors to the society that
             July 11, 2008 to see                                                         the community is growing. We were
                                     invested in their well-being -- is as necessary,
             how proud we are        and deserves equal honor.                            actively engaged in the Foreclosure
             indeed of what we                                                            Prevention task Force at the local
             accomplished.           Grants to the Delaware Community                     level and anti-predatory lending legis-
             What a great way to     Reinvestment Action Council from five charita- lation at the national level. We
                                     ble organizations -- the Longwood Foundation
             celebrate the 30th                                                           stayed true to our responsibilities by
                                     ($100,000), Welfare Foundation ($25,000),
             anniversary of CRA and National Catholic Campaign for Human                  commenting on mergers, regulations,
             DCRAC’s 20th birthday! Development ($20,000), Speer Trust ($30,000), and legislation.
                                          Citi Foundation ($25,000) and the Bank of
                                          America ($50,000) -- deserve recognition.

                                          These contributions will help turn a vacant two-
                                          story house on Wilmington's East Side into a
During this fiscal year, our new          credit union and personal-finance training cen- Diana Bernal to our team.
                                          ter in a low-income neighborhood.
Chair Domenic Pedante has been                                                            Jessica Mallamace, Lori
leading us into a new organizational      The financial training will be an invaluable    Spagnolo, Rony Peralta, and
phase of growth, and increasing           resource precisely because it will be in the    Rashmi Rangan continue
sophistication. A critical part of this   hands of a competent organization familiar with their tenure into the next fis-
evolution is the recognition by the       the pitfalls of personal money management.      cal year.
Institute for Standards of Excellence
                                          The grants are as much an investment in the
                                                                                    We were blessed with a

                                                                                                                            E ve n t s , s t a f f , vo l u n t e e r s !
that we are a well managed,               work of DCRAC Executive Director Rashmi
responsibly governed, nonprofit                                                     cadre of volunteers that
                                          Rangan, a zealous and effective advocate for
organization. Our Standards will          consumer education.                       helped us through this period
continue to guide DCRAC as it                                                       of growth. Howard High
grows, ensuring a solid, effective, Since its founding, DCRAC has done the hard-    School volunteers were a
                                    scrabble work of preparing low-income resi-     welcome addition. We also
and responsible path forward into   dents for long-term home ownership. It has
the future.                                                                         established a stronger rela-
                                    been a liaison to people who need hands-on
                                    help to navigate personal finances to reach a   tionship with University of
We also said good bye to Chelsea    level many thought impossible. And it's stepped Delaware for a pool of volun-
Newman (now a law student at        up in recent months during mortgage foreclo- teers into the next fiscal year.
Widener and a National Guard) and sure troubles.                                    The entire community came
Christopher Tijerino. During this                                                   through for the grand open-
                                    All of the contributors are to be applauded for
period we invited Tanya Ennis for a                                                 ing of our Economic Impact
                                    supporting this community jewel.
short period until we welcomed                                                      Center. Thank you so much.

              I’ve learned that people wi ll forget what you said, people wi ll forget what you did,
                             but people wi ll never forget how you made them feel.
                                                  Maya Angelou

              Volume 14                                                     Issue 1                                            Page 8

                                                   603 Capital Administration    EJC            FFSC        FHIP        MM!        Tax Clinic    TOTAL
             Ordinary Income/Expense                Campaign
                            Direct Public Grants   100,000.00            0.00    1,800.00      10,000.00        0.00        0.00         0.00   111,800.00
                            Direct Public                 0.00       7,500.00   45,000.00           0.00        0.00   47,500.00    29,000.00   129,000.00
                            Government Grants             0.00       8,800.00   21,750.00           0.00 110,950.90         0.00    16,650.00   158,150.90
                            Indirect Public               0.00       2,542.99           0.00        0.00        0.00        0.00         0.00     2,542.99
                            Investments                   0.00       5,119.53           0.00        0.00        0.00        0.00         0.00     5,119.53
                            Program Fees                  0.00       3,960.00           0.00        0.00        0.00        0.00         0.00     3,960.00
                            Special Events                0.00      29,931.36           0.00        0.00        0.00        0.00         0.00    29,931.36
                            Annonymous                    0.00         600.00           0.00        0.00        0.00        0.00         0.00      600.00
             Total Income                          100,000.00       58,453.88   68,550.00      10,000.00 110,950.90    47,500.00    45,650.00   441,104.78
                            Building Occupancy       87,017.86       1,388.47         271.90     172.76      826.37      536.29        607.44    90,821.09
                            Contract Services         8,659.50       3,767.25    9,718.00        725.00     1,675.00     400.00      3,400.00    28,344.75
                            Operations                2,804.90       6,255.01    2,146.21         37.79     3,450.51     624.16      1,083.67    16,402.25
                            Other Types                170.19       14,354.12    4,306.34       1,104.63    1,163.73     522.40      2,099.73    23,721.14
                            Payroll Expenses              0.00       5,550.78   10,000.00       6,267.18   77,629.05   41,644.99   31,718.20    172,810.20
                            Programs                      0.00       1,867.44    7,299.80       1,419.64   17,366.60    2,229.69     5,946.96    36,130.13
                          Travel and Meetings           24.75          157.37    2,320.54        273.00     8,839.64    1,542.47       794.00    13,951.77
             Total Expenses                         98,677.20       33,340.44   36,062.79      10,000.00 110,950.90    47,500.00    45,650.00   382,181.33

             Net Ordinary Income                      1,322.80      25,113.44   32,487.21           0.00        0.00        0.00         0.00    58,923.45
                              Auditor’s report will be posted on no later than February 15, 2009

               Economic Impactors                                                   Celebrate CRA October 2, 2007
              Longwood Foundation                                                        CRA 30th Anniversary
  US Dept. of Housing & Urban Development                                                          Citi
               Momentum Makers                                                                  CARE DE
                 Bank of America                                                            CRA Anniversary
            Internal Revenue Service                                                        Commerce Bank
                        Citi                                                                      WSFS
                       GMAC                                                               DCRAC Anniversary
             Speer Trust Commission                                                         AARP Delaware
  Catholic Campaign for Human Development                                                    Artisans’ Bank
                Paradigm Shifters                                                           Bank of America
   HSBC Bank USA National Association, NA                                                    Citizens Bank
                 JPMorgan Chase                                                           City of Wilmington
                   Discover Bank                                                              GMAC Bank
                 Dream Weavers                                                             JP Morgan Chase
                    Grant-in-Aid                                                               PNC Bank
                                                                                        Rashmi & Ravi Rangan
                                                                                                                                                    T h a n k yo u

                New Castle County
                City of Wilmington                                                         Friends of DCRAC
                Ministry of Caring                                         Division of Human Relations, New Castle County
                 Commerce Bank                                              Council, NCALL Research, Inc., Reliable Home
              Sussex County Council                                            Inspections, and Wilmington City Council

                                              You cannot dream yourself into a character;
                                               you must hammer and forge yourself one.
                                                         Henr y David Thoreau
                                                                Volume 14                                     Issue 1                                    Page 9

                                                               Normally, debt forgiveness generates taxable             If your debt is forgiven you will receive a 1099-C.
                                                               income. The Mortgage Forgiveness Debt Relief Act         Read it carefully--par cularly Box 2 (amount of debt
 Cancellation of Debt &
               F i r s t t i m e h o m e b u ye r c re d i t

                                                               of 2007 allows homeowners whose mortgage debt            cancelled) and Box 7 (fair market value). If there is
                                                               has been par ally or fully forgiv-                                                  an error, contact your
                                                               en to claim special federal                                                         lender.
                                                               income tax relief.
                                                               1. Must be taxpayer’s primary                                                      Do make sure that your
                                                                   residence.                                                                     former lender and IRS
                                                               2. Debt was forgiven between                                                       have your new address.
                                                                   2007 and 2012.
                                                               3. The debt must have been                                                         To claim relief complete
                                                                   used to buy, build or improve                                                  the relevant por ons of
                                                                   the residence as well as                                                       Form 982 and a ach it
                                                                   secured by it.                                                                 and Form 1099-C to the
                                                               4. Refinancing debt less than or                                                    federal tax return.
                                                                   equal to the amount of the
                                                                   mortgage principal prior to refinancing is also       To encourage homeownership, Congress also enact-
                                                                   eligible for relief.                                 ed legisla on providing a tax credit (which must be
                                                               Debt that does not qualify under the Act may s ll        repaid over me) of as much as $7,500 for first- me
                                                               qualify for exclusion for income taxes under the         home buyers. Only homes purchased between April
                                                               insolvency exclusion.                                    9, 2008 and July 1, 2009 are eligible.

                                                                Your Money or Your Life                                      A Recipe for Change

Graduates will not only be able to begin their credit                                                     Resume building, interviewing, career development,
building journey, they will walk away understanding                                                       so skills such as punctuality, workplace ethics, com-
their own rela onship with money, their financial                                                          puters, internet, all sound overwhelming? Not any-
goals, their credit report, managing their bank                                                           more. We have developed a curriculum that will help
accounts--including reconciling their check books,                                                        you expand your opportuni es. We need 8 dedicated
how to read a Truth in Lending Act Disclosure state-                                                      students to launch this class. This free seminar will be
ment, etc. Graduates from the last two sessions have                                                      a 5-week/10-hour course.
asked that this become a 10-week, 20 hour course.
                                                                                                                                                                     Our upcoming series
We will wait to see what you have to say. So, won’t                                                                          Pilot begins
you join us? Sea ng is limited to no more than 10                                                                       Saturday, February 21
par cipants. We ask for your absolute me commit-                                                            Economic Impact Center (603 North Church Street)
ment. In other words, we ask that you are punctual                                                                     10:00 am to 12:00 noon.
(in credit, 35% of your score is based on whether you
pay on me) and a end each and every hour of the
10 hours with us. Our next Series begins on Saturday,                                                               For more informa on and to register
January 10 from 10 am to 12 noon at 603 N. Church                                                                   for any of these series please contact
St. We are asking for a small dona on of $10/person.                                                                Diana Bernal at 302.654.5024 ext. 101
If you cannot afford, do ask for our scholarship

                                                                             Tell me and I'll forget. Show me, and I may not remember.
                                                                                          Involve me, and I'll understand.
                                                                                                Native American Saying
                             Volume 14                                            Issue 1                                     Page 10

                                                          Credit Clinic
                                                                                                                      Fair Housing
                            24-Jan-09     9 am to 1 pm
D C R AC c a l e n d a r

                                          Sussex County West Complex Building                         8-Apr-09   6 pm to 8 pm
                                          22215 Dupont Blvd, Georgetown
                                                                                                                 Woodlawn Library
                            24-Jan-09     2 pm to 6 pm
                                          Trinity Episcopal Church                                               2101 West Sixth St., Wilmington
                                          1108 North Adams Street, Wilmington                         15-Apr-09 6 PM to 8:00 Pm
                                                      Mortgage Matters!                                          NCALL Research
                            18-Feb-09     3 pm to 8 pm
                                                                                                                 363 Saulsbury Road, Dover
                                          Howard High School
                                                                                                      22-Apr-09 10 am to 4 pm
                                          401 East 12th Street, Wilmington
                                        Find out if your servicer/lender will be present.                        Location TBD in Sussex County

                                                          Tax Forum
                                                                                                                      Credit Clinic
                            16-Mar-09     6 pm to 8 pm
                                          Trinity Espiscopal Church                                   23-May-09 10 am to 4 pm

                                          1108 North Adams Street, Wilmington                                      LocationTBD in Kent County

                                                           Tax Forum focused on small business/self-employed
                           16-Jun-09                      6 pm to 8 pm
                                                          Sussex County West Complex Building
                                                          22215 Dupont Blvd, Georgetown

                                        Mortgage Matters!
                                                                                       Tax Forum         Locations to be determined
5-Aug-09                   3 pm to 8 pm
                           Sussex County West Complex Building                         16-Dec-09

                           22215 Dupont Blvd, Georgetown                               1 pm to 3 pm      Milford
6-Aug-09                   3 pm to 8 pm
                                                                                       4 pm to 5 pm      La Exitosa
                           Mother Union AME Church
                           701 E 5th Street, Wilmington, DE 19801                      6 pm to 8 pm      Georgetown
                                                                                       In Kent County, we need partners to help us
                                          Celebrate CRA
                                                                                       host our Foreclosure Prevention Workshop on
6-Oct-09                   11 am to 1:30 pm
                                                                                       November 18 from 3 pm to 8 pm and our
                                                                                                                                          Calendar, continued

                           Mother Union AME Church                                     Credit Clinic on May 23, 2009 from 10 am to 4
                           701 E 5th Street, Wilmington, DE 19801                      pm.
                                        Mortgage Matters!
                                                                                       Mortgage Matters! is designed to bring
18-Nov-09                  3 pm to 8 pm                                                Delawareans and their lender/servicer for a
                           Location TBD in Kent County                                 quick one-on-one resolution of their mort-
19-Nov-09                  3 pm to 8 pm                                                gage controversies. Please contact us to find
                           Mother Union AME Church                                     out if your lender/servicer will be on hand on
                                                                                       the date of our workshop.
                           701 E 5th Street, Wilmington, DE 19801

                                 When asked how much educated men were superior to those uneducated,
                                       Aristotle answered, 'As much as the living are to the dead.'
                                                            Diogenes Laetius

                                      Volume 14                                     Issue 1                                         Page 11

                                     Neighborhood Assistance Act State Employees Charitable             Talent pool
                                                                     Giving Campaign                    DCRAC warmly welcomes Jim Angus, esq.,
  We n e e d yo u r T i m e ,

                                     You now have a greater incen-
 Ta l e n t , a n d / o r M o n ey

                                                                     Thank you so much to those of      to our Low Income Tax Clinic family. With
                                     tive to donate to DCRAC! Not                                       time on his hand and a tremendous skill-
                                                                     you who already help us finan-
                                     only can you claim the federal                                     set, Jim was looking to continue to con-
                                     tax breaks, you can also claim cially each year through the        tribute to society. We thank our lucky
                                     state tax credits.              SECC contribution. Our SECC        stars and strong networks (including for-
                                                                     number is: 70099                   mer employee Roger Hesketh) that led him
                                     The NAA requires individuals to                                    to us. In addition to helping our tax clinic
                                     make a minimum donation of Combined Federal Campaign               clients downstate, we will utilize Jim’s
                                     $5,000 and organizations to                                        expertise in our Housing Clinic. He brings
                                                                     Umber is 23609.
                                     make a minimum donation of                                         to us a knowledge base that is all encom-
                                     $10,000 to receive this credit.                                    passing from his civil rights background
                                                                     Not a government employee?
                                                                     You can still consider your        and a skill set that includes training and
                                     For more information about
                                                                                                        dispute resolution. Words are not enough
                                     the tax credit program, visit   donation to us. You can send
                                                                                                        to say thank you.
                                    us a check any time! Our fed-
                                     services/at_naa                 eral tax identification number     If you have time on your hands and talents
                                                                                                        that you don’t want to waste away, won’t
                                     We sincerely hope we are on is 51-0329119. Your donation
                                                                                                        you join the growing DCRAC family?
                                     your radar for giving! Thanks. to DCRAC is tax deductible to
                                                                     the fullest extent of the law.     Thanks.

Thank you auction item donors                                                    generous with their donations as well. Lori Spagnolo
Polk Family: A basket of cheer. Dom Pedante: Phillies                            helped us secure gift certificate donations from local
Tickets, Blue Rocks Tickets, Massage by Ginny Fisher,                            restaurants.
Cake by Andrea, Biden cuff links, American Express, Crab
Feast, Christmas Wreath and gift certificates to Outback                         Thank you donors for space, beer & wine, DJ, desserts,
and Corner Bistro. Trippi & Keya Congo: Sixers’ Tickets.                         and more. Mrs. Polk--space and DJ. Kenny’s ShopRite--
                                                                                 Scrumptious Desserts. Domenic Pedante & Anthony

                                                                                                                                                 Holiday party and Silent auction
Tabatha Castro: A Will. Ann Wilkinson of Hands on
Health: Two Therapy treatments. Gwen and Al Griffith:                            Albence--a case of wine each. Al Griffith, Ravi and
Autographed hockey stick and Flyers’ tickets. Pat                                Rashmi Rangan--a case of beer each. LeAnn Pedante--
Ciarrocchi: A tour of CBS studios. Renowned artist                               our in-house unpaid graphic artist. Toscana --discounted
Charlie Colombo: Autographed his painting for bidder                             hors de oeuvres!
Dom Pedante. Deb & Bernie August: Sports parapherna-
                                                                                 Thank you bidders! Councilman Charles Potter, Tracey
lia. Susan Haberstroh: A fruit basket. Terri Hasson and
                                                                                 Streck, Dom Pedante, Gladys Spikes, Terri Hasson, Keya
Sharon Boland: A Bakers’ basket and an Italian Dinner
                                                                                 Congo, Gerry Kelly, Jaye Pedante, Rashmi Rangan
Basket. Ms. Pat: A Mary Kay basket and a wood carved
                                                                                 Andrea Sereni, Artika Rangan, Lori Spagnolo, Chelsea
hand painted holiday painting. Joan Fultz secured a
                                                                                 Newman, Ann Wilkinson, Diane Wright, Deb August,
donation of two Christmas Trees. David Bakey: A hair
                                                                                 Gwen Miller, Tabatha Castro, Susan Haberstroh, Matt
cut and color at Trilogy Salon. Christina Gioffre: Talents
                                                                                 Kane, and Donna DeLavrentis.
as a painter with a $40 gift certificate to her business,
The Love, Marriage, Baby Carriage. Jim Baker, Chris                              Thank you Angela LaManna , Domenic Pedante, and Lori Spagnolo
Coons, Tom Carper, Mike Castle and Joe Biden were                                and volunteers Sherry Rose, Bambi Baer, and Shirley Baer.

                                      Nothing can stop the man with the right mental attitude from achieving his goal;
                                            nothing on earth can help the man with the wrong mental attitude.
                                                                    Thomas Jefferson

                                       Volume 14                                    Issue 1                                   Page 12

                                      ¿Los pagos de su hipoteca lo están haciendo             Cómo evitar entrar en incumplimiento de pago y la
 N o d e j e p e rd e r s u c a s a

                                      tambalear?                                              ejecución hipotecaria
                                      Esto es lo que usted puede hacer                        Si usted se ha atrasado con sus pagos hipotecarios,
                                                                                              considere discutir con el administrador de su prés-
                                      Conozca su hipoteca
                                                                                              tamo las siguientes opciones para prevenir la ejecu-
                                      ¿Sabe usted qué tipo de hipoteca tiene? ¿Sabe si
                                                                                              ción hipotecaria:
                                      sus cuotas irán aumentando? Si no puede contes-
                                                                                              Reinstalación de la hipoteca: Esta opción le per-
                                      tarse estas preguntas comuníquese con la entidad
                                                                                              mite pagar la totalidad del monto atrasado impago,
                                      que administra su hipoteca y haga todas las pregun-
                                                                                              más cualquier cargo o multa por el atraso de sus
                                      tas que considere necesarias.
                                                                                              pagos, a una fecha específica. Plan de repago: Esta
                                      Estos son algunos ejemplos de los tipos de hipote-      opción le concede un período de tiempo fijo para
                                      cas más communes:                                       repagar el monto atrasado sumándole una parte del
                                      - Hipoteca con tasa ajustable combinada                 monto vencido al importe de sus pagos mensuales
                                      - Hipoteca con tasa ajustable                           regulares. Tolerancia por incumplimiento de pago:
                                      - Hipoteca con tasa fija                                En esta opción se reduce el monto de sus pagos
                                      Si se atrasó con sus pagos                              mensuales o se suspenden por un período de tiem-
                                      Si está teniendo problemas para cumplir con el          po. Modificación del préstamo: En esta opción
                                      pago de sus mensualidades, comuníquese con el           usted establece un acuerdo para cambiar de man-
                                      administrador de su préstamo lo antes posible para      era permanente uno o más términos de su contrato
                                      discutir sus opciones.                                  hipotecario.

                                                       Para mas información llame al 888-995-HOPE
                                           Departamento de Vivienda y Desarrollo Urbano de EE.UU

Venta de su vivienda: La venta de su casa tal vez                                Durante todo el proceso de prevención de ejecución
podría proporcionarle los fondos necesarios para                                 hipotecaria haga lo siguiente:
pagar la totalidad de su deuda hipotecaria.                                      - Anote todas las comunicaciones que mantenga
Bancarrota: Generalmente, la bancarrota o quiebra                                    con el representante de la entidad hipotecaria.
personal es considerada la opción de último recurso
                                                                                 - Dé seguimiento por escrito a todas las conversa-
porque tiene un alto impacto negativo a largo plazo.
                                                                                     ciones que mantenga con el representante de la
Cómo establecer contacto con el administrador de                                     entidad que administra su préstamo enviándole
su préstamo
                                                                                     una carta con el detalle de lo tratado verbal-
Antes de iniciar algún tipo de conversación sobre su
problema registre sus ingresos y sus gastos y calcule                                mente.
el valor neto de su amortización o acumulación                                   - Cumpla con todos los plazos que le otorgue la

hipotecaria.                                                                         entidad que administra su préstamo.
Luego anote las respuestas a las siguientes pregun-                              - Permanezca en su casa durante el proceso de
tas:                                                                                 prevención porque si se muda, es posible que no
- ¿Por qué motivos incumplió el pago de su(s)                                        pueda beneficiarse de determinados tipos de
     mensualidad(es) hipotecaria(s)?                                                 asistencia.
- ¿Su problema es temporal, de largo plazo o
     permanente?                                                                                 Para mas información llamen a
                                                                                               Rony Peralta 302-654-5024 x 102 o
- ¿Qué le gustaría que sucediera? ¿Desea conservar                                              Diana Bernal 302-654-5024 x 101
     la casa?

                                                                  Nunca, nunca, nunca, se rindan.
                                                                         Winston Churchi ll

Description: Consumer Credit and Debt Consolidation Wilmington Delaware document sample