Catholic Charities Providing help. Creating hope.

Housing counseling program expands
to address wide range of issues

By Judy Bokorney
Web Site Editor

Manatee County--Living in a community where the cost of a home is well above the national average, residents are susceptible to housing issues such as affordability, foreclosure, and predatory lending. Because of the current trends, Catholic Charities of Manatee County has expanded its housing counseling program to better serve those living in the area.

Catholic Charities Housing Counselor Lucy Martinez moved from Colombia to the United States to make a better life for herself and her family. From her experience, she said financial literacy was one of her biggest obstacles. Home ownership is a role that requires a certain amount of knowledge in order to be successful, she said. “No matter who you are, it can be difficult,” said Martinez. “But it is especially difficult for people who are new to our country and the financial culture. Also, adding to the problem is that English is not their first language.”

Catholic Charities of Manatee County, a HUD certified housing counseling agency, offers a free first time home buyers class in Spanish, and soon English, that upon completion makes participants eligible to apply for a Manatee County SHIP loan. This loan can be applied to a down payment and closing costs for a home. Classes are given on regular basis.

Martinez also provides one-on-one free housing and financial counseling in English and Spanish. In these sessions she tackles issues of setting a budget once you are in your new home, foreclosure prevention, reverse mortgage, refinancing options, the rights of a tenant, predatory lending schemes, homestead exemption, or what she calls “financial literacy” where she addresses credit repair, money management and budgeting for anyone who wants to learn--even if they do not want to purchase house or do not currently own a home.

“The biggest problem I currently see is that many clients are at risk of foreclosure because they purchased a home a few years ago with an adjustable rate mortgage and now they cannot afford that mortgage. They have developed negative equity,” said Martinez. “There are many reasons this can happen. For example a lot of workers in the construction business were given loans based on the amount of work they had a couple years ago. Now that the business is slowing down, they are not working as many hours and not making as much money.”

Iraida Contreras-Alonso, director of Catholic Charities of Manatee County, said pre-home ownership education is vital to most clients who come to the agency. “Banking, building up credit, money management and employment stability are often issues that people do not understand,” she said. “We want to expand the outreach to the community to familiarize them with the financial system. This outreach will not only target the immigrant community but other minority groups that are just as vulnerable.”

Contreras-Alonso said all clients who come to the agency for immigration services or citizenship classes would be encouraged to receive financial and housing orientation. She noted that homelessness is mostly caused by financial crisis, family disintegration and unemployment. In 2006, Catholic Charities of Manatee County addressed these issues with 202 people receiving one-on-one housing counseling and 88 clients attending the first time homebuyers class; 14 needy people received emergency financial assistance; 93 clients applied to be reunited with their families; and 192 workers renewed or replaced a lost or stolen employment authorization document.

Solving financial dilemmas, according to Martinez, usually requires finding the real source of the problem. Analyzing spending and saving habits, and sources of income can reveal underlying issues. “If a client has a job or just recently lost a job and has unemployment, then we can usually work out a solution,” Martinez said. “Lenders are willing to come up with payment plans that work for the client.”

Martinez said many people feel overwhelmed by financial problems pertaining to their home. “Many clients do not realize there are solutions and that their problem is only short term and can be fixed,” she said. “Many people come to me in despair but they want to do something to help themselves overcome their issues.”

First time homebuyers often can get discouraged in Manatee County, said Martinez. “I try to promote the purchase of town homes or condos instead of paying rent,” she said. “Home ownership happens in baby steps.” Martinez also noted that Manatee County has been building more affordable homes, making it easier for first-time homebuyers.

It is easy to fall into financial problems, Martinez said, which can ruin the dreams of home ownership for many people. “I want to prevent that from happening,” she said. “This affects everyone in the community. It is an important issue.”

Lucy Martinez is available for housing counseling by appointment at Catholic Charities of Manatee County. The first-time homebuyers class also is offered regularly at the agency. For more information call Catholic Charities of Manatee County at 941-714-7829.