Bank Reinstates Loan Trial After Error

U.S. Bank has reinstated Henry Adams to an FHA loan modification trial plan in July, ending a foreclosure threat that began with a delayed disability payment. The bank secured a policy exception from the Federal Housing Administration to allow Adams to restart the three-month trial period. This resolution came after a payment error caused his account to bounce, removing him from the program that was designed to keep the family in their Stone Mountain home.

Adams, a former AT&T employee and cybersecurity worker, resides in the home with his daughter, Caitlin. The family lived there for nearly two decades while Adams and his late wife, Ellen, served as pastors in Atlanta. Their ministry, which focused on homeless outreach, received local media attention during those years. Adams, who survived cancer earlier in his life, receives long-term disability benefits from AT&T. He developed a disability involving leg swelling after undergoing chemotherapy.

The financial crisis began in April as Adams cared for Ellen, who was battling breast cancer. Medical costs increased, and Adams fell behind on his mortgage. He enrolled in the FHA loan modification program, which required three consecutive on-time payments for final approval. On April 1, hours after Adams admitted Ellen to the intensive care unit for the final time, a bank representative called to inform him the trial payment had bounced. Adams noted that the program offered no grace period for missed payments.

AT&T’s third-party benefits provider later identified a systemic issue that delayed direct deposits by two days. A letter sent to recipients on April 8 acknowledged the glitch. Adams stated that the provider did not alert the thousands of people they serviced, leaving depositors unaware that funds would not arrive by the end of the month. The bank subsequently told Adams he owed nearly $10,000 in back payments and faced immediate foreclosure. Adams described the shock of facing foreclosure in the home where he raised his child and celebrated family milestones.

Ellen Adams died at the hospital hours before local news investigators met with Henry Adams. In a recorded sermon from before her illness, she cited biblical verses about God not leaving his followers in sorrow. Adams is currently raising funds for his wife’s funeral, scheduled for early June. He expressed gratitude to the media outlet that intervened, noting that the bank listened to his case when others had not.

A U.S. Bank spokesperson explained that FHA loan servicing guidelines require automatic actions when specific requirements are not met. The bank stated that it worked directly with the FHA to offer reinstatement to the trial plan, citing the unfortunate circumstances. An AT&T spokesperson attributed the incident to a system error at their third-party benefits provider. The company apologized to Adams and stated it is working with the vendor to prevent future occurrences. AT&T’s benefits provider did not respond to requests for comment.

Adams now focuses on completing the trial payments to secure the loan modification. The resolution allows him to continue residing in the home while managing his daughter’s care and his own health. The FHA exception permits the trial period to restart, effectively resetting the three-month clock for final approval. Adams has shared advice for other borrowers, suggesting they pay loans early and monitor bank accounts frequently to verify that deposits arrive as scheduled.