What's New at CHI
75 HOMEOWNERS FIND RELIEF at CHI FAST TRACK™ FORECLOSURE PREVENTION EVENT
June 21-June 23, 2011
Catherine Griffin and her mother Elizabeth Doster, of Elmsford, NY have a story with a happy ending.
It began two years ago as they swam in a pool with millions of others losing their homes, trying to stay afloat while the bank holding their mortgage processed their application for a loan modification.
The process seemed endless and was fraught with misinformation and missing information. Calls to determine their status were either not answered or answered by call centers after unacceptably long delays. Once connected, anonymous representatives said their documents were lost or their applications lacked documentation. Of 1.1 million homeowners who tried to get a modification through a federal program that promised results in three months, most continue to wait in limbo for years.
Griffin and her mother were able to turn the tide when they heard about a White Plains, NY-based housing counseling not-for-profit, which was “fast tracking” the loan modification process. Community Housing Innovations (CHI) believed there was a better solution --organizing face-to- face meetings between banker and borrower.
According to CHI Executive Director Alexander Roberts, “The banks are interested in numbers, so while a single homeowner doesn’t rate a special trip, 100 is a different story. So, we promised that if they came to White Plains, loan officers could meet privately with up to 100 homeowners facing foreclosure with complete documents.”
Prior to those scheduled meetings, applicants were asked to meet with housing agency counselors who reviewed and then submitted their files to the bankers with whom they would meet. All of CHI’s services, as a HUD Approved Housing Counseling Agency, are free of charge.
A private foundation provided funding for the Fast Track® events.
In early 2010 CHI Executive Director Alexander Roberts trademarked the process as the CHI Fast Track™ Loan Modification program and persuaded Bank of America to partner with his agency and three other HUD-approved local, housing counseling groups. The result of this collaboration was a three-day event in June, when a team of five traveling B of A loan specialists met with nearly 100 pre-screened applicants. The process was repeated in September, this time with Wells Fargo as the participating bank.
Between the two sessions, 170 families were seen in private one-hour interviews, often with their housing counselors present to serve as intermediaries.
CHI’s partners in the process were the Housing Action Council, Westchester Residential Opportunities and Human Development Services of Westchester. The Wells Fargo event included the Putnam County Housing Corporation. Post-interview surveys, filed by a majority of participants, reported a high level of satisfaction with the process. While many did not obtain on-the-spot commitments, they came away with commitments to complete the process.
Among the 72 who achieved the ultimate goal of a loan modification or forbearance agreement thus far, were Catherine and her mother. “The one-on-one meetings allowed us to finally sit across from a live person and get a handle on what we needed to do to keep our home. The bank (in her case, B of A) came up with monthly payments that we could afford. It’s now almost a year later and we are back on track again. This would not have happened if CHI had not created this opportunity.”
Roberts recently released a report with the results of the past two Fast Track events. “ While we wish everyone could have received a modification or other remedy to save their home, the Fast Trackä events greatly increased their chances. All who participated saw great value in expediting a process that has frustrated so many people.” CHI will continue its outreach to the banking community to help more homeowners.
Of the 170 homeowners who participated, the results were as follows;
- 67 received loan modifications
- 5 granted forbearance*
- 20 denied
- 17 withdrew applications
- 46 in process
- 3 short sales
- 7 information unknown
- 5 legal issues
Another success story is that of Mark Torchia, who reached the desired conclusion in April 2011. Torchia successfully made his mortgage payments until September 2010. He lost his job in June and by September payments became unmanageable. He describes his efforts to get help from B of A (which served as the processor of his FHA loan) as fruitless, with gaps of up to three months in communication. In the winter of 2010, he learned of CHI on the Internet.
“Very early on I believed that CHI would advocate for me and that we had a partnership,” said Torchia. “The process is paralyzing but working with CHI counselor, Peter Spino motivated me,” said Torchia. At CHI’s June 2010 event, he met with B of A loan specialists, who promised a trial modification. I am truly one of the lucky ones,” Torchia concluded.
Commenting on the Fast Track program Wells Fargo Regional Servicing Director Marie Day said, “We believe the work of non-profits such as Community Housing Innovations is an important resource for homeowners struggling with their mortgage payments and seeking counseling assistance. This outreach effort to homeowners facing this challenge is critical because we know three-fourths of our customers who fall more than 60 days behind in their payments who work with us are provided an option that prevents foreclosure.”
posted 7/7/2011
- click here for the What's New at CHI archive -
