Two-day delay in disability payment nearly cost father his home

Henry Adams was removed from a mortgage modification trial after a single payment bounced. The error cost him nearly $10,000 in back payments and threatened to foreclose on the home he had shared with his wife for almost twenty years.

Adams lives in Stone Mountain, Georgia. He and his wife, Ellen, served as pastors in Atlanta for decades. The couple used their home as a base for a homeless outreach ministry. Adams survived cancer years ago but was left with a disability that causes swelling in his leg. He receives disability income from his former employer, AT&T. He also works from home in cybersecurity.

Ellen Adams battled breast cancer for several years. As her condition worsened, Henry had to stop working to care for her. Medical bills rose quickly. The family fell behind on their mortgage. Adams enrolled in a Federal Housing Administration loan modification program through U.S. Bank. The program paused payments for a period. It then required three consecutive on-time trial payments for final approval.

On April 1, Adams admitted his wife to the intensive care unit for the last time. Hours later, the bank called. The scheduled disability direct deposit had not arrived. The mortgage payment bounced. The bank immediately removed Adams from the trial program. Adams said the bank gave him no grace period.

AT&T’s disability provider later admitted to a systemic issue. A system error delayed payments by two days for a small number of recipients. The provider sent a letter on April 8 explaining the glitch. Adams said the provider did not alert the thousands of people it serviced. No one knew the direct deposits would miss the month-end deadline.

The bank told Adams he owed nearly $10,000 in back payments. Foreclosure was imminent. Adams held a photo of his wife and daughter, Caitlin, on the back deck of their home. He noted that Caitlin was an infant in the picture and is now 21. He said he never expected to face foreclosure in the house where he raised his child.

Ellen Adams died at the hospital hours before a local news team interviewed Henry. He is now raising money for her funeral in early June. Adams said he could not stop crying when the bank finally offered a solution. He credited the news team for helping him get heard.

U.S. Bank worked with the FHA to grant a policy exemption. The bank allowed Adams to restart the trial period in July. A U.S. Bank spokesperson said the bank follows FHA servicing guidelines, which trigger automatic actions when requirements are not met. The bank said it valued its relationship with Adams and negotiated a reinstatement to the trial plan.

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

Adams advises borrowers to pay loans early and check accounts frequently. He suggests asking lenders about hardship exceptions if a payment issue arises. The family remains in the home while Adams completes the restarted trial period.