IN THE NEWS
Event helps lower mortgage payments
May 31, 2009; As originally appeared in The Advocate
STAMFORD -- For the second time in less than two months, families on the brink of losing their homes met with bank representatives during a foreclosure event Saturday at the Yerwood Center.
By the end of the day, 17 homeowners were able to reduce monthly mortgage payments by an average of $417, according to Christopher Meek, a Stamford resident and Goldman Sachs trader who initiated both gatherings.
He said that other borrowers, such as those who met with JPMorgan Chase, may receive modifications by the end of the week.
Bank of America, which signed on to the event less than two weeks ago, was able to grant modifications to 90 percent of borrowers who met with its representatives, Meek said.
Other banks at the event were People's United Bank, NewAlliance Bank, Webster Bank and Freedom Mortgage.
Meek, who receives neither public nor private funding for the effort, decided to stem the foreclosure crisis by organizing a communitywide initiative to get mortgage lenders and borrowers to meet face to face.
"We don't have to wait for government to do anything," he said.
The first event on April 18 drew more than 100 families. Afterward, Meek reported that 41 homeowners managed to lower monthly mortgage payments by an average of about $440.
The Housing Development Fund, a nonprofit bank which runs a foreclosure program, has since said that it would partner with Meek to host such events in other cities and towns across Fairfield County.
Joan Carty, president of the Housing Development Fund, said she hoped the initiative would lead to "a predictable system of intervention."
Saturday's attendance was less than last month's, despite several banks promoting the event by sending fliers to their customers.
About 70 to 80 families came, with many arriving as organizers were preparing to leave, Meek said.
He said the warm weather and school graduation ceremonies may have deterred some people from attending, he said.
Samuel Hernandez, 32, who lives on the East Side, was among the few dozen who showed up early in hopes of getting a loan modification.
A school custodian, Hernandez said he had been struggling to meet his $3,000 monthly mortgage payment since his overtime was eliminated and he lost his part-time job as a bus driver.
The father of four said he expects his wages to shrink from about $65,000 last year to $47,000.
After repeatedly trying to get a loan modification over the phone, he came away empty-handed, he said.
"They always said that that the program Mr. Obama had was not in place," he said.
He currently pays about $1,500 a month toward his mortgage, he said, even though it has meant falling behind in utility bills.
"I wanted to show (the bank representatives) that I'll work with them," he said.
After learning about the event Friday, Hernandez and his wife showed up at the Yerwood Center gymnasium carrying a plastic folder filled with bills and pay stubs.
They bought their home four years ago with a mortgage from Countrywide, which was taken over last year by Bank of America. Nonetheless, Hernandez mistakenly signed up to meet with representatives from JPMorgan Chase.
With so many home loans resold, borrowers often have difficulty keeping track of whom they should contact, Meek said.
The misunderstanding was quickly straightened out, and the couple were introduced to a Bank of America representative. After filling out a form, they met with a loan officer who had flown in from Texas for the event.
"He said he's going to help us out one way or another," Hernandez said, looking visibly relieved. He said he also was told that he would definitely qualify for a loan modification. "It makes my day," he said with a smile.
Only moments earlier, the 16-year Stamford resident had soberly reflected on living with a sense of uncertainty because of falling behind on his mortgage payments.
"You have in your mind, when is the day you are going to have to leave your house?" he said. "It's hard to live like that."
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