Banks Join Forum To Help Homeowners Avoid Foreclosure

CHICAGO (CBS) — In Illinois last year, nearly 30,000 foreclosed homes sold for an average price of about $138,000. That’s bad for homeowners and bad for lenders.

As CBS 2’s Mike Puccinelli reports, that’s why representatives from several banks sat down with local homeowners at a community forum on Saturday in the hopes of working together to keep more customers from hurtling into foreclosure.

Belinda Rogers was worried Saturday, because she’s concerned she might lose the home she’s lived in for decades.

“I’m current. I’m not delinquent and then I have the next payment coming out while I’m in the hospital,” Rogers said of her mortgage payment.

While she’s up to date, she wasn’t sure if she can remain that way. So on Saturday, she outlined her concerns to a representative from Wells Fargo Bank.

“As of next week I’ll be going in for a total knee replacement,” she said.

That surgery is expected to keep her off the job for up to six months. During much of that time she won’t receive a paycheck.

“I don’t want to come home from the hospital and I don’t have a place to stay. And for the next six months I won’t have an active income,” she said.

Rogers hundreds of other people in similar circumstances sat down with representatives from area banks on Saturday in the hopes of modifying their existing home loans.

Salem Baptist Church put on the forum after hearing from many desperate community members.

Salem Baptist Legal Director Rochelle Jackson said “People are quick to blame themselves, they’re quick to feel bad about their situations, but one of the things that were telling them is there are a lot of options.”

Wells Fargo officials didn’t want to speak about Rogers’ options but they did promise a quick decision.

“The decision will be made within five business days,” a Wells Fargo representative told Rogers.

Rogers said she’s afraid she might lose her South Side home if her current 7½% interest rate isn’t significantly lowered.

According to Realtytrac, in 2010 26% of Illinois homes sold were in foreclosure. Those homes sold at a discount of more than 35% when compared with homes not in the foreclosure process.

  • beardown

    Banks need to step up or come up with a solution if jobs do not pickup, more homes will face foreclosure, perhaps to offer to differ on a hardship for a year if possible such as furniture, as stores are doing on merchandise. PS I HAVE NO DEGREE to come up with this.

  • JAME


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  • airboy5900

    i’m sure they will be in the white areas doing the same thing next week right?

  • Jim

    Why are the banks always looked at first? This state taxes people to death and that is a major issue also. Quinn does not care for anyone except himself and the unions that he paid off and his actions directly prove this. He lied to the taxpayers and is increasing taxes at an alarming rate because he “promised” unions he won’t lay them off of they vote him into office. He is the most corrupt governor to date for Illinois and that is saying something for this state.

  • Pearlee

    If you loose your house and everything in it… what are you gona go? Where are you gona do? May be the children of the world are right. There should be a forum to help the homeless population in this state. 166 thousand people are homeless and growing. By now, probably more people are out in the streets living in their cars or under a bridge. What whould we do for them?
    Create more affordable housing and bring more jobs to the area, People are desperate and are unable to find anything. Can our elected officials do something about this critical issue?
    We all hope so. Rent is so high and there is no single rooms for rent either.
    Create more of those please. Fix the delapidated buildings and put people in there to live with their kids.

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