Homeowners get some advice on managing debt

A Schaumburg congregation trying to help local residents avoid foreclosure held a summit Saturday that brought experts, including bankers, financial planners and lawyers, to homeowners.

For six years, members of Living Faith Cathedral Worship Center have held a daylong workshop centered on debt-free and prosperous living. This year, they shifted their focus to foreclosure prevention and loan mitigation.

Discussions looked at the sub prime mortgage crisis, including examining adjustable rate loans with low initial rates, 100 percent interest loans and negative amortization.

"We are driven by the mortgage crisis that affects every aspect of our lives," said the Rev. Larry Bullock, pointing to the mix of homeowners and investors in attendance.

More than 60 people registered for the conference, held at Prince of Peace Lutheran Church in Schaumburg.

"This is very much needed in terms of getting people information on understanding foreclosure and refinancing options," said church member Lawrence Gunn of Arlington Heights.

Kathleen Phelps-Wiley of Hanover Park attended with her husband and two children.

"I want to make more effective and wise mortgage choices and learn more about planning for my family's future," Phelps-Wiley said.

Charlayne Brown of Chicago arrived early, the better to take in all of the panel discussions and workshops.

"I want to learn how not to go into foreclosure," Brown said, "and learn more about refinancing and getting lower rates."

Bullock said the church ventures into the economy because faith needs to be relevant to life, and homeowners and neighborhoods are being affected.

"The people seated in the pews live lives, spend and borrow money, pay mortgages and buy homes," Bullock said. "We're trying to address issues that are central to their lives."

Lynn Richardson, vice president of emerging markets for Chase Bank, opened the workshop, urging residents to return to basics in terms of saving and borrowing.

"If there's a lesson learned from all of this, it's that there are no shortcuts to success and that dream of homeownership," Richardson said. "You have to develop saving and financial habits that will sustain any market."