Chattanooga Neighborhood Enterprise Debuts Foreclosure Prevention Hotline

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Council Members Manny Rico and Carol Berz, CNE President David Johnson, Mayor Ron Littlefield, from left

Chattanooga Neighborhood Enterprise President and CEO David Johnson met with city officials on Wednesday to unveil a new program aimed at helping homeowners facing foreclosure. The Chattanooga Foreclosure Prevention Hotline will be staffed with trained counselors who will work with mortgage lenders and service providers to find a solution that will prevent families from losing their homes, Mr. Johnson stated.

Citizens facing a home finance crisis, whether foreclosure proceedings have formally begun, or there is merely a perceived risk of foreclosure, are encouraged to call the hotline at (423) 664-HOME between 8:00 a.m. and 5:00 p.m., Monday through Friday.

David Johnson, CNE President and CEO

The location of the press conference, at the Brainerd Complex on North Moore Road, was chosen due to a high concentration of foreclosures in the Brainerd and Highland Park areas, officials said. Of the 346 foreclosures between November 2008 and March 2009, almost 25 percent were in or near Brainerd, according to research. A printed map showing locations of foreclosures during that time period was provided at the event, and a digital version has been requested for inclusion here.

City Council members Carol Berz, District 6, and Manny Rico, District 7, attended the announcement along with Mayor Ron Littlefield and selected CNE and city staff. Ms. Berz said, "we often focus on economic development, but we're a compassionate city as well." In his remarks, Mayor Littlefield thanked CNE president Johnson for taking the organization "back to its roots." The mayor also stated that while Chattanooga is better positioned than many cities to deal with the current downturn in housing, several area agencies will be "holding hands" to ward off an increase in homelessness.

Funding for the hotline initially comes from a $50,000 community development block grant from the United States government. When asked what would happen if or when that money ran out, Littlefield and Johnson both indicated that "the federal government is not finished" with its plans to aid communities, and that funds would be located within other agencies to continue the counseling program, if needed.

The critical message, says Johnson, is for people experiencing trouble paying their mortgages to avoid "hiding from creditors." He encourages everyone in or headed toward foreclosure to call the hotline and get help. "Lenders would rather work something out than own another piece of property," he said.