Neighborhood Assistance Corporation of America NACA, www.naca.com is touring the US offering Loan Adjustments to home owners that are having challenges keeping current with their mortgage. You must show income but it's not based on FICO scores or if you are late on your payments, it's simply based on your current situation. Situations such as an out of control adjustable rate mortgage, loss of income (new job not paying as much as old job), and reduction in property value.

They can lower your interest rate as low as 2% for the life of the loan.

They can also reduce your principle. In fact, I know of a 261k reduction. Now if that sounds to good to be true think again, it's true. I know because I saw it first hand. Here's what happened:

I was meeting with one of my clients whose home I have on the market as a "Short Sale", I was updating her on the challenges I was having with the lenders and encouraging her to hang in there. She jokingly said, "Maybe I should go to the big event at the Cow Palace and see if they can help me". My reply was "I've heard of NACA (www.naca.com), but I don't know much about this program they have at the Cow Palace". Now, as a Realtor who prides himself on being a resource, I wasn't proud of my answer to my client so I set out to learn more. After locating their web site (www.naca.com) and poking around, I decided to take a drive to the Cow Palace to see first hand what NACA had to offer.

It was Monday around 1:45 and the rain was pouring when I started my journey over the bay bridge. Needless to say with the heavy traffic, the rain, and that sneaky new "S" curve on the bay bridge, the thought of turning around crossed my mind several times. But, this wasn't about me; so I continued my journey.

As I pulled up to the parking lot and saw the mass of cars, I thought, "this must be the wrong place." 

I asked the parking attendant, "excuse me, I'm looking for the NACA event?" He replied, "This is it! Just keep driving toward that attendant and he'll show you where to park". So I'm marveling at the crowds and thinking to myself, "This many people are here? Do this many people need help? This looks like a concert."

In fact, it looked like a Michael Jackson concert.

Only Michael Jackson could draw the diversity of folks I saw there that day. Black, White, Latino, old, young you name it. Funny, I imagined that this is what the Michael Jackson, "This Is It" concert might have looked like had he lived.

Once inside the Cow Palace I was in awe to see at least 275 counselors on the floor with there desktop computers on one side and desperate home owners sitting on the other. The place was full of people, even on this third day of the event. Nonetheless, I just stood there and looked around to get a feel for what was going on and what was the procedure. Suddenly, over the PA system the announcer introduced herself and said, "I have another testimonial to share with you from Hector, who is drove here from Las Vegas so lets hear Hectors story".

Hector was so choked up that I couldn't understand everything he said.

But I got the nuts and bolts of what mattered most:

• His loan was "restructured from $4100 per month, (because it had adjusted over time) to $1800 per month
• With a 2% fixed rate for the life of the loan.

He confessed that he was reluctant to take the long drive because he thought it was a HOAX. He had been talking to his lenders with no success but he was desperate. He and his family were about to be kicked out of their home so what did he have to lose.

Soon after Hector was done, Marie from Sacramento got on the mike:

• Her principle had been reduced because of the drop in property value,
• She owed $451k and it was reduced to 191k,
• Her mortgage was adjusted from $2700 per month to $1605 per month.

Testimonial after testimonial hit the PA system and I heard one person after another share their story. Praising God, thanking NACA, and thanking the counselors that had worked on their loan. They also encouraged the full house of desperate home owners to Be Patient.

After being touched by these emotional stories I pulled myself together and proceeded with my effort to learn how NACA www.naca.com worked.

NACA is a non-profit community advocacy and housing services membership organization. Its confrontational community organizing and revolutionary mortgage product have set the national standard for effective neighborhood stabilization programs. NACA has an approach that translates to Net Income - Monthly Liabilities = Monthly Payment (PITI).  Now I know what you're thinking, "That's what all lenders do", but according to Bruce Marks, CEO and Founder of NACA, loans are structured to fail and the only solution is to have them restructured.

Particularly sub-prime loans that were so freely given to anyone that had a pulse. According to Mr. Marks those loans were not meant for regular home owners, they were meant for investors that purchase homes and flip them. Now I know the event has come and gone from the Bay Area, but fear not, simply log on to the site www.naca.com and be prepared to complete a 10 step process of forms which include all your personal information, authorization to pull your credit, property information, loan information etc. If you feel a little overwhelmed hit the save button and take a break and come back to it.

After completing the forms hit the submit button and after a few weeks a counselor will call you for a telephone interview and get down to the business of adjusting your loan. Similar to what I heard from the testimonials at the event, be patient; don't get discouraged by all the questions. It's worth it. The site even list the dates for future stops so if you see it coming to your city, get a lawn chair, pack some food and get in line. When it comes to adjusting your loan "This is it!" 

By the way, I called all my short sale clients and told them to log on and sign up with NACA www.naca.com.  I also called the buyer's agents representing buyers in my short sale transaction and informed them of what my clients were doing. Needless to say, the reaction was mixed. One last thing, if you're having problems with the website you can reach NACA at 1-888-302-6222. I hope this helps.

If you've had any experiences with NACA, please comment-I'm sure it could be beneficial for all to hear…