Ms. J, a resident of Bloomington, Ill., was a long-time homeowner before she fell into a predatory loan that eventually turned her into a renter in her own home. But today Ms. J owns her home again and is making payments she can afford, thanks to a the partnership between NTIC and Select Portfolio Servicing (SPS).

Rev. Dr. Eugene Barnes

When Ms. J inquired about refinancing in order to do some remodeling on her home, an SPS staff member recommended that she contact a broker, who approved a loan for the repairs. The broker assured Ms. J that the new loan would be forthcoming, encouraged her to stop paying on her old mortgage loan - serviced by SPS - and told the contractor to do the work. When the refinance loan never came through, SPS foreclosed and the contractor also obtained a judgment. The broker finally scheduled a closing but the homeowner arrived unrepresented and without notice that she had to sign over title to her home to get the two judgments paid off. She became a tenant in her own home with the right to repurchase within 12 months at a price more than $30,000 above the value she had received.

Ms. J contacted the Central Illinois Organizing Project (CIOP) when it became obvious that she couldn’t pay the repurchase price.

Rev. Eugene Barnes and Jack Porter, CIOP’s representatives to the national partnership with SPS, negotiated with both SPS and the broker. SPS also negotiated with the broker and the result was a modified repurchase agreement enabling the former homeowner to regain title for approximately the value she had received through the payoff of the judgments. CIOP also worked with two other partners, Fannie Mae and National City Bank, to obtain a conventional mortgage loan and a lower interest rate.

“There is no way this resolution could have been obtained so quickly and fairly,” said Barnes, “without the NTIC partnership with SPS and SPS’ willingness to commit staff and financial resources to the effort.

“Thanks to our joint efforts, one more person will remain in their home.”