Help For At-Risk Homeowners

Chattanooga has for the most part escaped the nation's foreclosure mess. But city leaders say the problem has crept into the scenic city, so they unveiled a new hotline to help.Foreclosure Hotline

   David Johnson, CNE President and CEO, "You may ask why we're standing in front of the Brainerd recreation complex. It's because Brainerd has been one of the hardest hit areas."
   David Johnson of Chattanooga Neighborhood Enterprise began tracking foreclosures last November.
   Of the 346 families foreclosed upon between November and March, almost 25% were in Brainerd. 76 foreclosures occurred in Brainerd over the last five months.
   Johnson, "Only 50 percent of households facing foreclosure actually ever seek help. So we're trying to reach out to the other 50 percent."
   With help from a $50,000 grant, CNE set up a Foreclosure Prevention Hotline.
   Johnson, "If there's income in the household there's usually hope."
   They urge troubled homeowners to call before their lender starts the foreclosure process."
   Counselor Mimi Turner, "We see a lot of people that are basically in denial, they don't open mail."
   Counselor Mimi Turner helps people sort out their options and negotiate with lenders. She says homeowners fall behind for a number of reasons.
   Turner, "Most of them have a reduction income and then we've had several that have had health issues, so that's when we try to do a loan modification to reduce their payments."
   Most lenders want people to keep their homes, but it's up to homeowners to ask for help. To learn more call 664-HOME (4663)