First Hallmark lends to the needy.

First Hallmark Mortgage Corporation has created a program to help homeowners pay off municipal tax liens through mortgage refinancing, announced Bruno Viscariello, president of First Hallmark.

According to Viscariello, from July 1, 2002 to June 30, 2003, the Tax Court of New Jersey had a total of 13,491 cases pending or newly filed against homeowners delinquent in paying local property taxes. This constitutes an increase of more than 13% from the court year ending in June of 2001.

"If municipal taxes remain unpaid, these homeowners risk foreclosure on their property within a six-month to two-year timeframe," Viscariello said. "Often they realize the importance of stopping the process--and growing debt--but lack the resources at the current time to handle it on their own."

Such was the case for Hugh McDermott of Monroe township, a recent First Hallmark client. Although McDermott's tax lien only amounted to $1,085, which accumulated over nine months, the 15-year homeowner understood the necessity of paying it off quickly. In New Jersey, municipalities have the right to sell their tax liens to the highest bidder at an auction if the homeowner has not paid local taxes in 12 months, which is the average. The investor who buys the tax lien certificate is entitled to earn up to 24% interest and can foreclose on the property if the lien and interest are not paid by the homeowner within two years of the auction.

"First Hallmark worked with me to take advantage of the increased market value of my house and offered me a lower interest rate than I had expected," said McDermott. "Along with paying off the tax lien, the refinancing allowed me to put tuition funds aside for my two daughters in college and for my three younger children in parochial school. First Hallmark's knowledgeable professionals kept me informed from start to finish and made the process go smoothly."

Depending on the client's credit situation, First Hallmark offers clients a mortgage at the current interest rate or slightly higher. The new mortgage includes escrowing municipal taxes, which eliminates the risk of future delinquency. For clients that make timely payments on their First Hallmark mortgage for one year, the company offers no-cost refinancing to put them into a mortgage with a lower interest rate.

"Unlike McDermott who had a small lien, many homeowners who are delinquent on municipal taxes have also fallen behind on other payments, such as credit cards, and amassed a sizable amount of debt," Viscariello said. "We work with clients to keep their home and once again gain control of their personal finances. Our strategy lets them begin planning for the future."

In a breakdown by county, Essex led New Jersey with 1,433 new filings for local property tax delinquency in the court year ending in June 2003. Following Essex was Bergen with 946, Morris with 690 and Hudson with 645.