The N2N Lifeline funds granted to the Greater New Haven Community Loan Fund are "rescue funds." This grant allows the Loan Fund to help homeowners and renters with one-time payments that will achieve solutions that keep people in safe, adequate and affordable housing.

The first family rescued was an older couple, George and Anna, who have custody of their seven year old grandson. They have owned their single family home in New Haven for more than 10 years. Both George and Anna went through some severe medical issues which left George unable to work, and Anna only able to work part-time. In order to pay their medical expenses, they refinanced their mortgage to an adjustable rate loan. Living on George's Social Security, child support for the grandson and Anna's part-time wages, they were able to keep up with their mortgage payments, barely.

In March of 2008, when their mortgage was to reset, George was successful in negotiating a loan modification with their lender, which still increased their monthly payment but at a rate that was closer to their reach. Soon after, they turned to the Loan Fund for help.
In July 2008, the Loan Fund evaluated their household income and monthly expenses, and found that their mortgage was not at a level that they could sustain. We attempted to re-negotiate with the mortgage servicer, and they were somewhat sympathetic, but they had an agreement with their investors that loans would only be modified once during any twelve month period. The suggested that we return with a request for modification in early 2009, which was the plan last fall.

However, additional unexpected medical expenses put George and Anna behind in mortgage payments. While they have been able to maintain their monthly obligation since, they are still always behind in their payments. Their loan was moved to a new servicer, who outright rejected the February 2009 modification request the Loan Fund filed with the family.

N2N Lifeline rescue funds will be used to pay the servicer two months of mortgage payments. This will bring George and Anna to "current" on their mortgage, which will help their overall credit rating, and put them in a better position to negotiate with the lender in the future. It will also buy them time until the new federal regulations placed on lenders have a chance to kick in. Through the new legislation, the lender may be required to reduce the mortgage rate for up to five years, and/or may be required to reduced the amount of principal.
Even without these new modifications, with the rescue funds provided by N2N Lifeline through the Loan Fund, George and Anna will remain in their home, and offer a stable, safe and comfortable place for them to live with their grandson and to watch him grow.