Saturday's event drew thousands -- husbands and wives and children -- and was so large that organizers began the workshop an hour early and continued it longer than planned. Still, about half of those who showed up were turned away and advised they would be contacted later by phone.
Inside a large room at the San Fernando Valley municipal center, homeowners huddled with counselors, talking in hushed tones about private family finances. Making a stressful situation worse, those waiting outside filled out long forms and voiced frustration over the complexities of modifying a home loan.
For The Record
Los Angeles Times Tuesday, December 02, 2008 Home Edition Main News Part A Page 2 National Desk 1 inches; 57 words Type of Material: Correction
Mortgage workshop: An article in the Nov. 23 California section about events aimed at helping families in hard economic times said that a workshop to assist IndyMac Federal Bank customers falling behind on mortgage payments would be held today in Riverside. The event is Saturday: 9 a.m. to 4 p.m. at California Baptist University, 8432 Magnolia Ave.
Only about a third of the 300 customers who were able to meet face-to-face with counselors were offered a loan modification. To the dismay of many, property owners discovered that they have to be behind at least two months with their mortgage and facing foreclosure before they can restructure their home loan.
David Kimes, 74, of North Hollywood, was among those who made the cut. He is a general contractor whose work has shriveled 92% this year because of the economy.
"I have an adjustable rate mortgage coming due in 2012. I want to stay in my house until I die," he said. "They told me they'd see what they could do."
But some of those not yet behind in their payments complained that bankers need to do more to prevent looming loan defaults and home foreclosures.
"Why do you want to screw up the people who are making their payments and trying to avoid foreclosure?" demanded Constantine Metallinos, a 59-year-old real estate broker from Agua Dulce. "You are forcing us into default before you'll help us. People who are good citizens get penalized."
IndyMac spokesman Evan Wagner was sympathetic. But he said his Pasadena-based thrift is limited in its flexibility to rework loans. "We're stuck enforcing existing contractual agreements" with outside institutions that own about 93% of IndyMac's loans, Wagner said.
"The program is evolving. We're helping people today who we couldn't help a month ago," he said. But loan modifications are "not about a better deal. . . . There's no principal reduction."
Those who qualify can have their loan interest rate lowered or the terms of the loan changed to stretch payments out 40 years instead of 30.
Evans said a second Home Preservation Day is planned for Dec. 2 in Riverside. He said the hundreds who walked away without any sort of loan modification offer Saturday should call IndyMac and try again.
Northridge resident Michael Sharp might want to take that advice after being told he and his wife, Susan, did not qualify.
Sharp, a 48-year-old carpenter, owes $620,000 on the home the couple bought four years ago for $565,000. The monthly mortgage of $4,000 will jump in two years when an adjustable rate kicks in.
His wife is employed as a communications technician, but his work is drying up, Sharp said. "It would be foolish to say I'm not afraid," he said. Added his wife: "In two or three months it will be a disaster. Right now we're holding on, but the future doesn't look like it's going to be any better than it is right now."
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