Disability delay cost Charleston-area father his home trial payments

Henry Adams stood on the back deck of his Stone Mountain, Georgia, home on a recent morning, holding a photograph of his wife, Ellen, and their daughter, Caitlin. The couple had lived in the house for nearly 20 years while serving as pastors in Atlanta. Now, the family faces a fight to keep the home after a technical error delayed a disability check by two days.

The delay caused Adams’ mortgage payment to bounce in April. This single missed payment removed him from an FHA loan modification program. The program was designed to lower his monthly costs after Ellen’s breast cancer diagnosis made medical bills unmanageable.

Adams received disability income from his former employer, AT&T. He also worked from home in cybersecurity. However, Ellen’s health declined, requiring frequent hospital visits. Adams spent most of his time monitoring her condition and accompanying her to treatments. The financial strain became severe as the year progressed.

On April 1, hours after admitting Ellen to the intensive care unit for the last time, Adams received a call from U.S. Bank. The bank informed him that his direct deposit had not arrived by the deadline. Because the loan modification required three consecutive on-time trial payments, the missed payment ended the trial period immediately.

AT&T’s third-party benefits provider later issued a letter dated April 8. The letter described a systemic issue that delayed payments for a small group of recipients. Adams noted that the provider did not alert the thousands of people they serviced about the change in deposit timing. He described the situation as a glitch that left families unaware of the shift.

The bank told Adams he owed nearly $10,000 in back payments. He faced immediate foreclosure on the house where the family raised their children. Adams said he never expected to face foreclosure in the home where the couple celebrated major life events. The stress of the situation compounded the grief of Ellen’s hospitalization.

Ellen Adams died at the hospital hours before reporters from Atlanta News First Investigates met with her husband. In a recording of a sermon she gave before her illness, she spoke about comfort in sorrow. Adams said those words held true for him during the months that followed. He is now raising money for her funeral, scheduled for early June.

After media inquiries, U.S. Bank negotiated a policy exemption with the FHA program. This exemption allowed Adams to restart the trial period in July. A U.S. Bank spokesperson stated that the bank values its relationship with Adams and acknowledged the unfortunate circumstances. The bank confirmed it would offer reinstatement to the trial plan.

An AT&T spokesperson said the incident stemmed from a system error at their third-party benefits provider. The company apologized to Adams and said it is working with the vendor to prevent future delays. The third-party provider did not respond to requests for comment regarding the specific delay.

Adams now focuses on completing the loan modification to secure his family’s housing. He advises other borrowers to pay loans early when possible and to check bank accounts frequently. He also recommends asking lenders about hardship exceptions if payment issues arise. The process has been lengthy, but the exemption has provided a path to keep the home.