May 2, 2009 5:46 pm US/Central
Hundreds Turn Up For Help With Mortgages
Loans May Be Modified As Part Of President Obama's Foreclosure Prevention Plan
CHICAGO (CBS) ―
There's a new federal program that could keep thousands of Chicagoans in their homes. It's called Making Home Affordable and as CBS 2's Mike Puccinelli found out, it's designed to do just that.
Judging by the size of the line, and the determination and patience of the people in it, it was clear Saturday that thousands of Chicagoans are looking to fix their mortgages. They started lining up before dawn for a chance to have their loans modified as part of President Obama's $75 billion foreclosure prevention plan.
Marie Williams was at the front of the line.
"I was here first," she said. "I was here at 3 a.m."
That's because the mother and homeowner missed her most recent mortgage payment and is facing possible foreclosure.
"I'm afraid of losing my home," Williams said. "I'm afraid of being put out on the streets".
To hopefully avoid that she and thousands of other homeowners showed up Saturday to take advantage of free counseling and assistance. They filled out paperwork to see if their loans could be modified and made more affordable. Organizers say the event is the first in the country since the president's plan was announced.
"It's specifically to help homeowners determine if they're eligible and to complete their application and submit it to their servicer on the spot," said Ellen Sahlhi of the Department of Community Development.
To qualify for the loan modification program, homeowners have to prove that their mortgage payment exceeds 31 percent of their gross income.
People who did that immediately faxed over their loan modification requests to their lenders. Williams is hoping to have her payment lowered from more than $1,100 a month to about $700.
"This is going to be a program that is going to help me get out of a very bad situation," Williams said.
And she hopes it will help keep her in her brick two flat.
"It ain't a fancy home or nothing, but it's all I got and it's worth the world to me," Williams said.
A world that she now believes is no longer in danger of crashing down around her.
If you want to see if your loan can be modified, contact the
Neighborhood Housing Services of Chicago.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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