Working to stay at home

Maggie Behringer

Correspondent

When Dalton, Ga., resident Gabriel Queen arrived at the Home Rescue Fair on Saturday, he was “at a brick wall” with his mortgage payments.

He said he purchased his home in 2006 for $126,000, taking out a mortgage with Countrywide, now owned by Bank of America, at an interest rate of 6.5 percent.

Four years later, Mr. Queen’s monthly payment adds up to $972, $653 of which is interest. His outstanding balance on the original loan is $120,782. Laid off in 2008 from Mohawk Carpet, he says he has struggled to find employment.

He came to the Home Rescue Fair, sponsored by the Alliance for Stabilizing Our Communities and the Dalton-Whitfield Community Development Corp., seeking a readjustment of his monthly payments.

A housing counselor told him where he could receive free food and where to find help paying utility bills. A Bank of America representative looked at his account, introduced him to two options for adjusting his interest payments and put him in touch with a negotiator who would finalize the adjustment.

“We need help in America,” Mr. Queen said. “It’s nice to know there’s someone in the community that cares.”

Jacqueline O’Garrow, Bank of America senior vice president and national director of alliances and initiatives, and Gail Jennings, of the development corporation, have heard countless stories like Mr. Queen’s.

Metro Dalton’s unemployment rate is 11.6 percent compared to the national 9.5 percent rate, according to the Bureau of Labor Statistics. RealtyTrac ranks Whitfield County 32nd in Georgia for home foreclosure filings.

Saturday’s event at the Northwest Georgia Trade and Convention Center was the second in Dalton and the 27th in the country.

“The purpose is to see as many people as you can in a very short amount of time,” Ms. Jennings said.

Last September, 250 people in 150 households attended the fair.

“It would take us weeks to see that many people,” Ms. Jennings said.

The Alliance for Stabilizing Our Communities formed in 2008 after a group of organizations — the National Urban League, the National Council of La Raza and the National Coalition for Asian Pacific American Community Development — received a $2.5 million grant from Bank of America.

“They were concerned about the disproportionate impact of the subprime mortgage crisis on minority communities,” Ms. O’Garrow said.

The funds went to hiring and training counselors and community outreach, specifically for events such as Home Rescue Fairs. Ms. O’Garrow explained these events bring the services to the communities where homeowners can have face-to-face conversations with lenders and counselors who might otherwise only be contacted over the phone. She adds that typically 56 percent of attendees have never spoken to someone about their mortgage before the events.

On Saturday, loss mitigation representatives from Bank of America, Chase, Regions, SunTrust, Freddie Mac, Wachovia/Wells Fargo and America Home Mortgage Servicing met with homeowners to start the modification process. Housing counselors provided a more holistic approach, with budgeting information tailored to the household.

Legal aid was also on hand for those who felt their mortgage terms were unfair or had been the victim of a mortgage scam.

“You find a lot of individuals who are just looking for help,” said Angela Conner, SunTrust vice president and community development manager for the East Tennessee Region.

She said SunTrust’s representatives mostly encounter homeowners who are struggling with payments because of job loss. The priorities then are to calm fears and develop a long-term plan to manage the loan.

Connie Bryant, senior vice president and community development officer at Wachovia Bank, seconded the assessment that job loss is the major determinate in foreclosure. She said Wachovia/Wells Fargo representatives can construct repayment plans and restructure debt onsite.

According to Jason Menke, spokesman for Wells Fargo Mortgage, the bank has helped half a million customers find affordable payment options since 2009. Additionally, 92 percent of its mortgages remain current in payments, he said.

Ms. O’Garrow explained that a crucial element in bringing services to the community is teaching financial literacy. The fair featured workshops like Foreclosure 101, Crisis Budgeting and Making Home Affordable presented by the University of Georgia, the Georgia Housing Finance Authority and the United Way of Atlanta.

Brenda Terry, a Dalton housing counselor, said her biggest responsibility is education. Beyond talking to a homeowner and working with the case to achieve a modification through the lender or a federal program, she showed people the guidelines of fundamental budgets and reviewed their monthly expenses.

Like Mr. Queen, Blanca Moreno and Lillian Osorto came to the fair hoping to secure modified payments. Ms. Moreno, who works for Apache Mills, recently separated from her husband. Ms. Osorto was unemployed for a period before her current job with TP Global.

Ms. Moreno has owned her home for seven years, Ms. Osorto for five. Both women face hefty monthly payments and interest rates around 6 percent. Neither received a definite answer from their banks, but they were positive about the fair, especially the counseling, and their mortgages’ future.

“I’m still hopeful,” Ms. Moreno said.