Unfortunately, we were working well with our bank and would have likely been able to work out a deal if we had not contacted NACA. After punting our account to them, Wells Fargo no longer held our account and could not/would not help us further.
By working with NACA, we lost our home. They did not return calls, or even keep the documents we sent them. We sent them hundreds of documents, both by certified mail and fax. It was a huge mess, and I am most upset that we lost our house because we chose to work with them.
My advice: DO NOT WORK WITH NACA UNLESS EVERY OTHER OPTION IS DONE AND GONE!!!!! Beware that if you start an account with them, you limit your options and NACA can't always help you.
I have heard better things regarding NACA modifications, but those things were still bad. There are HUD approved agencies that are much better than NACA.
The information in this answer provided by Attorney Ranj Mohip is general information and is not intended as legal advice, nor does the attorney intend to create an attorney-client relationship with any reader by answering this question or otherwise contributing as a member of Trulia.com.
While we all agree that the premise and mission of NACA is fantastic, there is much left to be desired regarding their follow through.
NACA portrays itself as a non-profit, community advocacy and homeownership organization. NACA professes its primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership. NACA maintains they are committed to providing honest and effective counseling to its Members, enabling those with poor credit scores to purchase a home or refinance a predatory loan. With dissatisfied members and unhappy employees, is this a seemingly unachievable mission?
NACAâ€™s leader/CEO Bruce Marks, is a forefront leader and advocate of rights for the underdog and always takes the "junkyard dog" approach when fighting! Unfortunately, Bruce Marks is unable to have the same commitment and fight for his own employees. Bruce Marks is all about making things look nice on paper so he can continue to receive government and bank funding to keep he and his family living the lifestyle they have become accustomed to while his largely African American and Hispanic employees are losing their homes, cars, filing bankruptcy, relying on food stamps to feed their families and the list goes on because these employees are paid sub-pay standard wages. Bruce Marks prides himself and brags about paying top dollar for his Harvard lawyers. One has to wonder if these high priced Harvard lawyers are paid to clean up Bruce Markâ€™s indiscretions behind the scenes while heâ€™s out in front distracting the public of his own shames by staying out in the forefront of the press or throwing other organizations under the bus. All the while our eyes stay focused on whatâ€™s going on in the front as to take your eyes off whatâ€™s really happening behind the scenes.
NACA believes in investing in working people and they believe they are the answer to subprime and predatory lending. NACA states they have conclusively shown that when working people get the benefit of a prime rate loan, they can resolve their financial problems, make mortgage payments and become prime borrowers. What if NACA adapted that same belief and philosophy with its employees; NO more sub-pay, replace benefiting from a prime rate to benefiting from prime income; NO more predatory hiring practices, replace it with fair and equitable treatment. NACAâ€™s employee base is largely African American and Hispanic and with these changes NACA employees in all 41 branches could resolve their financial problems too!
NACAâ€™s largely African American and Hispanic employees are poorly paid, not properly trained or educated to be efficient and effective in carrying out all of their duties to assist the members. Most NACA offices are under staffed, some only having one mortgage counselor. Thus, the members of the organization are not being properly counseled, serviced and in many instances not being seen at all. Effective April 1, 2012 NACA lowered it already sub-pay compensation plan for Mortgage Counselors (MC) to an all time low. There is tremendous turnover in the majority of the offices because the employees are unable to survive on the $8 per hour â€œdrawâ€ not salary. Draw really means â€œtemporary incomeâ€ you have to pay all the money youâ€™ve accumulated at $8 per hour back to NACA once you close on a loan which yields a commission of $450 to $1,000; there are Mortgage Counselors who are indebted to NACA for thousands of dollars because the timeframe to close on a home is unrealistic compared to the illustration provided in the job description and the salary they advertise in their job postingsâ€¦â€¦simply put, most Mortgage Counselors are not able to close loans and if you donâ€™t close loans you donâ€™t make money. It can take on an average of 6-9 months to close one loan. Pause! If NACA is claiming the purchase staff (namely unlicensed mortgage counselors) are only housing counselors and not loan officers (mortgage counselors) then why is the pay structured as a loan officer who work on commission? Hmm...
Most of NACAâ€™s mid and upper level management lacks the experience, education and proper training for the â€œtitlesâ€ and positions they hold. They too, are not provided with the proper training and resources to help their staff. Most if not everyone in management is wearing more than one hat and incapable of focusing on what matters and what the organization is supposed to be about. They are unable to provide the right assistance and guidance to keep the organization in sync. As a result, improper counseling leads to the inability to effectively close loans resulting in the employee not being paid for their work.
A large percentage of NACA members never get through the process meanwhile more and more new members are solicited
You will find members from the Home Save and Purchase program that post their progress. This is extremely helpful to other members. Members can ask questions, get clarification and express their concerns.
First it was a credit card, storage bill, and car insurance. Now it can't be the credit card because it's a line of credit and she never told me that.
Then she told me to keep the balance below 1/2 the credit limit to bld good credit. Today she says it should be $0. Okayyyyyyyy
I started a new alt credit line because the book says 3 - 4, she told me NO why are you spending money. My other alt credit has to be utility bills paid current for 6 mths. The book says 12 months. So am I qualified in 6 months or another full 12 mths? I am so frustrated.
Very grateful, Jim
First off, the whole program is (for the most part) funded by tax dollars, so this is spreading the cost out to everyone not eliminating it.
Second, NACA uses communist tactics (and an unfair law) to force banks to make these loans. They are taking people(for the most part) that are not credit worthy and making them appear credit worthy thru their "program". If these people were responsible with their money they could get a loan from traditional sources.
Why is it unfair to look at a person's past payment history instead of their future (that is dictated by NACA)? Moreover, what is wrong with a down payment?
NACA borrowers have a lower interest rate (because of their unethical practices) but the borrower still has to pay thousands in fees to NACA (added to their payments) and volunteer (free labor).
Educate yourself about a free market societyâ€¦ if you value such a system.
Actually NACA and other "non-profit" companies like them are part of the problem with lending today. They are federally funded and are invented to carry out political agendas. They actually help very few people. Borrowers have to jump through hoops to get a loan from them and most have to wait 7-14 months for a loan (missing closing dates and defaulting on sale agreements)
I think it is funny that they admit hounding and harassing banks to get them to loan money to extremely high risk borrowers (by threatening discrimination through redlining) ; now that those same people are defaulting on their homes NACA has the temerity to harass the companies again to let them refinance or let them keep their homes without paying what they agreed in the first place. And NACA wears this with a badge of honor?
NACA may seem good on the surface but it is just a tool for some political scheme.
They are advertising a type of loan that got the market in trouble in the first place.
â€¢ No credit/bad credit
â€¢ No money down
â€¢ No closing costs
â€¢ Very low interest rate
If the borrower does not have anything invested in a property to begin with then they are more likely to walk away from it without fulfilling their agreement.
NACA promotes irresponsibility with their communist like tactics.
In a free market, lenders will be more selective when making loans (they are the ones putting up the money), but organizations like NACA make threats and do anything they can to disrupt a free market.
I donâ€™t agree with the term "predatory lender" because this is removing the responsibility of the borrower in the agreement. A loan is a contract that is agreed to by ALL parties involved. The borrower does not have to enter into the agreement. If laws were broken in connection with a contract, then the contract is voidable anyway. If people would educate themselves about contracts just a TAD before going around signing them, then most of these problems wouldn't exist.
Actually I think that predatory borrowing is more of a problem than predatory lending. The borrower will say anything and falsify anything just to get a loan, then when they can't pay it back they claim to be a victim of "the evil predatory lenders".
The current economic collapse was caused by ignorance, but that is another rant. :)
Do you need personal or business loan without stress and fast approval? If so, please contact us as we are now offering loans at prime interest rate. Our loan is secured and safe, for more information and applications, please reply to this e-mail. (email@example.com) the name and amount needed.
contact us today (firstname.lastname@example.org)
I was impressed by the process and the friendliness of the Advocate but turned off by some of the questions gathered. She was required to ask me my religion!!!! What? That is not anyone's business. If you think people aren't collecting data about you for a specific reason your wrong! There is a purpose. Not sure what the purpose of that one is but I hate to guess. After they collect everything there is to know about you except your party preference if your lender is not boa or wells they only forward the info to them.
I know. I am someone who is on the Do Not Call List, and today I received a recorded phone call from Bruce Marks. My caller ID said "Out of Area".
I have reported this phone call to the Federal Trade Commission.
They seem very sleazy, especially if they have to make such calls to people in order to drum up business.
I would recommend staying AS FAR AWAY FROM THEM AS YOU CAN!!
I work as an assistant to a previous NACA rep that now is a real estate agent. It takes our clients that use naca about a year to close. Most of them have to suffer until the closing date; but they still send us a lot of people because NACA is the only hope they have to ever buying a home. Many are always willing to give references. NACA is for those that are willing to pay the price in hard work and perseverance as well to repair their credit.
Some of our sellers don't like NACA because of the unpunctuality but they still deal with them because despite the loooooooong time they take, NACA is a sure thing for those that persists and do all the dreading things they ask for (lots of documentations and paper work.) Some seller send us people because they know that we can help them pass the NACA challenge and also willing to give references.
For us as a very small real estate office using NACA, we are unable to make a decent profit since naca has a lot of limitations. It takes a lot of work to be qualified by NACA. Most people don't want to do the work or don't have the time to get their file and all together. Anyhow, buying a home is not easy, even if you have a lot of money and can buy cash. We call most of our clients frequently, help them in every thing including cleaning their credit; we take them by the hand.
As for now we are restructuring in order to be able to help people and make some profit. But we will offer more alternatives to NACA for our clients. Also, most people that use naca is because of imperfect credit or they want no down, no closing cost and a very low interest rate. That is the very good part of the deal. Most people are very skeptical until they move into their new home or see their friends into one. They often say, if they can, I can. If you ask around you will find someone who bought with naca no far from you.
I do think that NACA does not take care of its employees. They are overworked and sacrifice their family time. They have a high turnover. The paid may be average considering the large hours they give.
Good luck in buying a home. If I could be of any help contact me at email@example.com
You cannot be in a hurry with them it took me 8 months. When you have God on your side you can do all things.
I am currently working with the NACA office in Raleigh, NC. How long did it take (beginning to end) to purchase your house? Did you have any problems closing? My husband and I are almost at our wits end with our counselor. We have completed all our tasks, got over the required amount for MRF, and now waiting for our file to be sent to the underwriter. I was recently told by my MC via email that she doesn't have to time during office hours (unless someone cancel an appt.) to complete our file for submission to the underwriter and has to work on it after work hours. Then, I got the don't contact me I will contact you vibe from her. Are there any good counselors at this location that I should switch to? Or is everyone busy and hard to work with?
The negative - slow, unprofessional, and they lie (alot). You really have to work the loan, constantly calling, sending emails, and forseeing issues that may arise. It took 2 months to close even after the NACA prequalification. My prelimary bank info was $2800 less than what was asked of me at closing and they gave me this total 2 hrs before closing.
You have to really, really, really want the house and really really really need to buydown your interest rate to afford the monthly payment, otherwise you will loose your religion with these people and their ridiculous process.
I have had a horrible time corresponding directly to NACA. That is something you will get with the sheer volume of calls.
But it has been even worse dealing with Bank of America directly. BofA wouldn't even talk to me for 6 months about changing my loan till NACA got involved.
Once NACA was involved, then BofA actually transferred me to the NACA phone bank each time I called instead of their own. Like that would absolve them.
Now BofA won't get back to NACA or me. That is BofA's fault not NACA.
I have only paid a $20 voluntary fee for NACA participation and have not been asked for a dime more by them. If you are paying them something more, it's because you decided to make an additional donation.
If you want to blame anyone, blame the ones that put you into the situation that you even needed to ask someone like a NACA type organization. NACA isn't at fault. Blame the borrower that won't work with you.
If the banks were cooperative, NACA and other organizations would cease to exist.
Good f*>#$ luck working with the bank.
Don't get me wrong it is very easy to become a NACA member. But never loose your job and need help then the truth about NACA will be revealed. I contributed 3.000.00 dollars for 5 yeas paying an extra 50.00 per month to NACA. All I asked for was 1 month payment to make my mortgage current. Since Oct 2008 to now Oct 2010 they have yet to make the payment to my mortgage company. When I first contacted NACA for help I was assigned a worker. He told me to relax for 3 months and take my time finding a job. That did not make any since to me. I know after 3 months your house starts to go into foreclosure. So I called back after a couple of weeks and talked with his supervisor. She said no that's not how it works. They had me go before a peer committee to be approved for the payment. Mind you the peer committee are other NACA members like yourself. I had been a NACA member longer than anyone on the peer committee. Also I had to send in mortgage payment receipts along with unemployment payment proof etc. The corporate office is in North Carolina so I faxed the paper work. The same worker that told me to wait 3 months then find a job kept saying he did not receive my paperwork that I faxed to him. I told him I was going to the NACA office in my area and make sure he got the paperwork. There was a pause in his voice then. After that I felt this was a Scam. I was approved by the peer committee to receive the one month payment. That's when the supervisor and worker started the madness. Every other week I would check my mortgage online and the payment was not made. I called my worker and he said he send the payment to the mortgage company.
I talked to his supervisor and she said she released the payment. I told her my credit was being messed up as long as I stayed a month behind. She said they were not concerned about my credit.
So every other week for over 1 year the bank kept saying it was not sent to them. My worker and his supervisor were hanging up the phone on me as soon as I said my name. My phone number was blocked from their office desk phone, I could only reach them being transferred through the switchboard. I kept professional when talking with them. They know they were giving me the run around and did not make the payment. I was also put on hold and they would never return to the phone. Emails were not even responded to. I called the CEO Bruce Marks and left a long voicemail message about what I was going through with his my worker and his supervisor He never returned my call. I believe they were just doing their job ordered by him. The feel the reason why it is easy to get into a home through NACA, they make money off of you. You have to volunteer your time also make 50.00 payments to them every month for 5 years. I also had to pay 3,000 dollars to get into my home for down payment. Invested the 3,000.00 for 5 years. You might as well go through the bank yourself. That is a 6,000.00 down payment.
Also when I was out of work for the 2 years I did not ask for NACA help. My home almost when up for foreclosure because of my 2 second mortgage. I was not aware that Bank of America was not suppose to give me a second mortgage because I am a NACA recipient but they did. I had to pay the attorney fees etc to save my home.
NACA sued Bank of America. But they work together scamming people. Do Your Research.
My worker kept saying he did not get it. So I went to the NACA office in my are and they put the paperwork in the system. Iâ€™m looking for a lawyer to get my money back
that I invested for 5 years. NACA is working with the Bank Scamming people.
They are making money and the bank is going to make money by reselling your home.
This NACA Program needs to be investigated by the Government. NACA recipients
that get help from NACA have jobs and just fall behind. If you loose your job
NACA will not help you. Please research these programs.
I spoke well of NACA until I needed one month payment that I was suppose to get..
I apologize for being long winded. This was a very frustrating experience.
There have been NACA memberâ€™s that have unfortunately lost their homes.
Donâ€™t believe the hype about NACA. They need to be investigated.
At first my bank said "we do not have that program yet, then we will get it soon, then we have it but no one knows how to contact them, then it finally was yes we have one and I will put you through to the "Loan Modification Department"." I was constantly told that I had the wrong paperwork. I did not sign the correct spots, my pay stubs were out of date ( because the bank was taking way way to long to do anything). Then we happened to mention that I was getting unemployment on the phone when talking to the bank. The next thing we know we are asked for a document that the unemployment office never was able to provide. Finally I had to go off unemployment just to start the whole process again. Sigh; then we started the whole process again, new paperwork, new paystubs, me off of unemployment. Finally we got an answer, we do not qualify and when I asked why they said they did not have to tell me why, I just did not qualify. I had had it with the bank, I looked on the Making home affordable Web site and we did qualify. I went to my Congresswoman and complained. My congresswoman sent the bank a letter. The day after they received the letter I got a call from the bank ( which had never happened in the 2 years ) I had always had to call them. I was told that I qualify with the paperwork I sent in and they would be sending me paper work to sign. We qualified and had a 3 month trial period where we had to make the LOWER payment. As if we would not be able to pay a lower payment. We passed with flying colors and now have a new lower interest loan with 80 some odd taken off of the top of our loan and an interest rate of 2% for something like 4 years then it increases a little. Contact your bank ask for the "Loan Modification Department". My bank was WellsFargo. Do everything you need to do, go to the web site on Making homes affordable http://makinghomeaffordable.gov/ it will help you through the process, then also contact your congress person it could not hurt and it may help. That is not all the story but I hope it gives you a direction to go in.
Have faith, never stop, send in the paperwork over and over again, resend new pay stubs, KEEP Records of who and when and what department you talked to. How long you waited on the phone, how may departments you were transferred to and how may hang ups you got. You may never get the same person twice, but you would be amazed at how interested the news papers are about stories about people given the run around who actually kept records and notes of conversations. Another avenue to get the banks to work with you. And Yes I did that as well but I called them I never waited for anyone to contact me. Is it hard to do, hell yes, can you do it if you qualify? I really don't know, but I never gave up and never took "NO" for an answer and I did it. You never give up ether! Good Luck,
IF anyone wants to contact me my email address is firstname.lastname@example.org