Rainbow PUSH Aids Homeowners Facing Mortgage Crisis

Dorothy Heard had tried everything she could think of – talking to her bank, counseling services and prayer – but nothing worked to salavage her Griffin, Georgia home valued at more than $250,000 from foreclosure, until Janice Mathis, national VP of Rev. Jesse Jackson’s Rainbow PUSH got involved.

Rainbow PUSH was encouraged during a high level meeting with Fannie Mae in September to attempt to assist homeowners in crisis.  “We broached the subject with Fannie Mae and discovered that the giant mortgage backer was as interested in helping homeowners avoid foreclosure as we were.”  There is a widespread perception that lenders want foreclosure, but that is not usually the case.  At this point the market is saturated and lenders are insecure about the ability to dispose of foreclosed properties.

According to Axel Adams, RPC 1000 Churches Director, “we have been teaching financial literacy for years through our church network, but we had not directly addressed foreclosure.  During our educational sessions, we became aware of many families on the brink of losing their homes.  It was worrisome to pastors who are often the first person a family in economic distress will turn.”

Ms. Heard found Rainbow PUSH because of an announcement on Rev. Jackson’s weekly WORD network program televised each Saturday morning out of Chicago.  “I called the office in Atlanta, got a chance to meet Rev. Jackson during the Rainbow PUSH conference in Atlanta, and Janice Mathis immediately went to work on my situation.  My interest rate has been reduced and my payment is now affordable.”  Ms. Heard got into trouble with her mortgage when her grandfather – whose income helped to meet the mortgage payments – died.  “It was not good bank underwriting to include the grandfather in the income calculation, but the lender has been very cooperative in modifying Ms. Heard’s loan. 

Rainbow PUSH has fielded dozens of calls from homeowners seeking assistance and is beefing up its staff and volunteer forces to meet the demand for assistance.