Lisette Dewitt * is trying to stay strong, but it’s hard.
The single mother is facing foreclosure in less than a week, and could lose her Virginia townhouse.
Describing her three-year struggle to save the place she worked so hard to purchase, the tears begin to fall.
“Luckily I have a job, but my title changed and my salary was reduced,” says the 45-year-old, who works in the hospitality industry.
She begins to cry softly. “I’m trying to keep my faith.”
Dewitt joined nearly 600 people in Upper Marlboro, Maryland Wednesday for an event aimed at struggling homeowners; part of the Obama administration’s ongoing efforts to address the nation’s mortgage crisis.
The session was hosted by the U.S. Treasury department and Housing and Urban Development (HUD) in partnership with the HOPE NOW Alliance, an industry-created group of mortgage servicers, investors, non-profit counselors, and others, formed to assist homeowners.
“About 41,000 letters were mailed to homeowners in the area who missed a payment,” said Andrea Risotto, a spokeswoman for the Treasury department. “Unfortunately, we still see too many homeowners who delay reaching out for help because they may feel ashamed, afraid or unsure where to turn.”
The Obama administration reports that since June 2009, officials have hosted 75 sessions in 51 cities across the country.
The events have brought together mortgage servicers, HUD-approved housing counseling agencies, non-profit, government and other stakeholders to give homeowners resource information and critical help.
Many of the nation’s largest mortgage companies have been invited, including Bank of America, CitiMortgage, Fannie Mae, Freddie Mac, JP Morgan Chase, PNC, SunTrust and Wells Fargo, among others.
“We’re one of four major lenders who have been participating in outreach,” said Roger Braggs, vice president for National Mortgage Outreach at Bank of America. “We have been doing this in all 50 states. We continue to focus on the hardest-hit markets.”
Bank of America is of the country’s largest mortgage servicers, reportedly with a $1.8 trillion portfolio and nearly $12 million in customer loans.
Braggs says company representatives have been seeing customers “coming in past due and in the delinquent phase—every case is different.”
While not everyone will get the outcome they seek, he believes the company’s efforts are having an impact. “We have helped prevent more than 1.4 million foreclosures. … As long as we see a need with our customers, we will continue to engage them.”
Yesterday, Dewitt and other homeowners were able to sit down face to face with representatives from various mortgage companies and HUD-approved housing counselors, to discuss options to avoid foreclosure.
Dewitt says her ordeal began in 2009, after her Fortune 500 employer downsized a third of its staff and her near six-figure salary was cut almost in half.
“It made a huge dent.”
Dewitt has continued to work and took in roommates for a time, trying to make ends meet. Along the way, she has reached out to her lender, seeking to modify the mortgage payments.
Yet despite adjustments, the note—initially about $1,700 a month–is now higher than before, due to interest and penalties.
Dewitt has managed to stave off the foreclosure process before—”there was a sticker on my door,”—but that possibility looms again this month.
“I have worked hard all my life,” she says. “Most people want to keep their homes. I’ve had to tell my daughter the truth that we may have to move.”
Nearly 68,000 homeowners nationwide have attended one of the free events, officials say, with about 70 percent reporting they had fallen behind due to an unexpected financial hardship.
“We know that when a homeowner seeks housing counseling they have a better than 50 percent chance of staying in their home,” said Jane Vincent, a HUD regional administrator.
Since 2009, more than 5 million homeowners have gotten help to avoid foreclosure through government and mortgage company programs, according to Tim Massad, the Treasury department’s Assistant Secretary for Financial Stability.
“We’ve seen foreclosure notices cut in half from early 2009,” said Vincent of HUD. “Though much progress has been made, there is still more work to do.”
As part of the events, the administration has hosted dozens of roundtable discussions across the country with community leaders, to discuss challenges in their local housing markets, as well as possible solutions.
There have also been more than 400 free training seminars for some 60,000 real estate agents, housing counselors and other partners nationwide, to share resource information for homeowners in their communities.
“We encourage any homeowner who is struggling with their mortgage payments to get free help understanding their options and next steps,” said Risotto.
But she cautioned that “there are an increasing number of scammers out there,” and homeowners should be vigilant.
“The federal government provides resources for free. Homeowners should never pay for assistance. Homeowners should always check with their mortgage company before making a payment to any third party.”
For the first time in a long time, Dewitt feels hopeful.
“I don’t know what will happen, but my faith in God is strong. I got a lifetime of information—it was an education. And I plan to tell others.”
*Name has been changed to protect privacy.Additional sessions are planned in the coming months in the following cities: Foxborough, Massachusetts (August 28); Detroit, Michigan (September 11) and Nashville, Tennessee (October 24). For more information: MakingHomeAffordable.gov; www.HopeNow.com or (888) 995-HOPE.