Along comes NACA. We do the workshop, schedule our first counselling session and show up half an hour early. Four hours go by and the lady we were scheduled to see still hadn't called us back. We were pushed off onto another counselor who had time. No big deal.
We go through all of our information (we spent a great deal of time gathering the many documents required), the counselor scanned our documents into the system, and then we spoke about what he/we thought our max monthly payment should be. We left feeling good about things.
A week goes by. Then two, then six, then eight. We called several times and were not able to get in touch with our counselor. Which was because he had been let go by NACA due to being arrested for beating his wife. (public record searches can turn up interesting results) Anyway, the lady we were supposed to have seen at first has no idea who we are, probably because she never saw us. We FINALLY get in touch with her and make an appointment.
We come for our appointment and wait an hour, two, four on then some before the lady at the front desk called our counselor on her cell. The counselor said we were not on her calendar. She was EXTREMELY rude with me. Not curt, not short, but EXTREMELY cuss-at-me rude. Eventually, after being equally rude to her, she remembered who we were. We scheduled ANOTHER day to come in. When we did, we were told that the first counselor never scanned our documents into the system (funny, I watched him do it).
We had to do this all over again. Finally, we got that done by faxing everything we had when we got home that evening. Weeks go by before emails are returned and luckily we had been following the budget set forth by the first counselor, which was more strict than what the current counselor wanted, so we only needed to be on our budget for another month and a half.
After we spent our three months on the budget as planned, we scheduled our "second" which was really our fourth meeting to go over the budget. Everything checked out and we were OK'ed to go the buyer's seminar (which was postponed week after week after week until nearly two months later, we finally got to go).
After this buyer's seminar, we were given our "shopping papers" which were something like a pre-approval. We could now shop for a home. Whew, and only six weeks AFTER our lease had run out on our apartment forcing us to live in my sister-in-law's basement.
We find a house, put in a bid, get the contract drawn up...annnndddd......had to submit our paper work again. Now the bank that worked with NACA (we're not even going to get into the inspection rules) has our paper work drags their feet. Our counselor, who is supposedly our advocate, does not relay the needs of the bank for days at a time. Bank says "Hey your fax is too dark, please have them re-submit this form" Two days go by and our counselor sends us an email around 8pm that says we need to re-submit this form which goes through her, then into the system and then on to the bank.
Anyway, safe to say we easily went further than the 45 days the contract had been drawn up for. We ended up getting the house anyway. Through a conventional PNC FHA loan.
So I did some snooping. The interesting part is that NACA counselors get paid per deal they close. BUT. They get paid on a scale that increases as their clients credit score decreases. They get full commission if they help someone with a credit score of 500, but only half if their clients are responsible borrowers.
In my eyes, this does two things.
1) It pushes people into homes that probably have spending habits that a three month enforced budget wont help. IE- people who should not own a home.
2) It gives the counselor incentive to leave certain clients hanging, because they only get paid half commission for helping them out.
I get that NACA as a whole does a lot of good and I agree with their message totally. But a payment system like this fundamentally flaws an otherwise great mission. Not to mention just a tad of customer service would be great.
Ashiida Kahlil can kiss my good-credit-score-having ass.
Finally, NACA took up my cause once again and saved our home. We had three different auction dates which they were able to postpone throughout the negotiation process. My hired attorney stated there was no paper you could file to stop the auction. Well NACA did it. Thank God for NACA. And Praise God..
THERE IS NO PMI...
Private Mortgage Insurance is given to every loan on the regular market who does not have atleast 20% equity in the home and that is every FHA mortgage around.
So even when you buy a home you know has over 20% equity the appraiser will only appraise for atleast $1 over purchase price never at the true value (speaking specifically about bank owned properties and short sales).
So you end up paying PMI even though the home has 20% equity.
Now that to me if a farse...
So back to the $50 you only pay it for 5 years some 10 years if over a certain $ amount and you have no PMI it goes into a fund that you can apply for later on in the life of the loan if you fall on hard times. (HOME SAVE)
So I would rather pay NO CLOSING COSTS, NO PMI NO DOWN PAYMENT and $50 dollars a month for 5 - 10 years, and pay less interest even 0% interest for the life of my loan than to do the latter.
Yes not everyone will like NACA but for those who stay the course it is a life changing program. FINANCIAL LITERACY!
Your Trusted Advocate: Expert Customer Service, Proven Results!
There on thousands of people seeking NACA services and it is understandable that the process takes time or that there is a wait if you call them. I was patient and my patience paid off. You must be diligent and not give up. Check their website regularly for the status of your case and help them to help you. You cannot expect to get something for nothing.
Some banks are more willing than others to give modifications to its mortgage holders. NACA can't guarantee anyone will be accepted for a modification of their current loan. They do try which is more than I can say for other organizations...NACA is not a miracle worker and now that word has gotten out about their service there are literally hundreds of thousands of people who want to get their help.
There are other organziations out there in your city to help just like NACA does if a person doesn't like NACA then they can find another organization to help them. It will involve looking on the internet and searching for them. BE PROACTIVE about your own situation and seek help through another organization or give it one more try with NACA by calling the local office and asking the Home Counselor about your file. If you go elsewhere you will make room for the other thousands of persons who would stand in line for days to try and see if NACA can help them.
It is beautiful when they can help and tragic when they can't but we have to understand that they ARE trying to help. Everyone's situation is different and each situation is considered.
These mortgage lenders who NACA is trying to get to modify these loans are entities in themselves and have their own set of rules and challenges to overcome...and not all want to modify the loans though there are some banks that have been more accomodating than others.
Maybe looking at some other organizations in your area would help you attain the modification you so desire...though not guaranteed or promised but atleast they would try.
You can call me at 216-272-3877 if you would like some help trying to see whether we can talk with a Home Counselor in your city to see what they are doing to try and help you get the modification you need.
I wanted to put this infromation out about NACA.
NACA is slow and yes some of their employees are hard to deal with but as a Real Estate Professional who had the very first buyer to close a deal through NACA in Ohio I have to say that is was worth all the trouble.
I keep in regular contact with my buyer who purchased through NACA and she is still very happy with her purchase.
Your Realtor needs to know the process...I went to so many of the Homebuyer workshops that I could give their workshop without hesitation and sometimes better than those who worked for them. Anytime I had a client going to a workshop I attended.
NACA is very committed to helping people no matter the nationality whether you are an A+ buyer or a C- buyer. They treat everyone the same. I have seen it first hand.
It took almost two years to get the first person to close a deal with NACA here in Ohio...we went through about 4 Home Counselors before stabilizing but anything worth having is worth fighting for and if you have a committed Real Estate Professional then you are in the right place with NACA.
I do not like that NACA expects the Realtors to do so much but asks us to give our bonuses to the buyers so in that respect I know NACA wants to see the very best outcome for their buyers and your realtor if they choose to work with the NACA buyers should do like any good professional and help to remove all obstacles by communicating regularly with the seller and his/her agent.
Our home closed in 45 days which is not bad at all.
I paved the way for others and made their road easier, I personally found the Title/Escrow Company, the Home Inspectors, and the Contractors which NACA approved. It was not easy because NACA's requirements were outrageous but I was committed to service for my buyer.
Again it is all in who you have lobbying for you. Find the right Realtor who is an advocate first in their own lives then they will know how to advocate for you!
I wish you success in your search and all others wishing to use NACA.
Should you have any questions specifically about their processes you can contact me at any time at 216-272-3877.
Your Trusted Advocate: Expert Customer Service, Proven Results!
If you do complete " the program " you may purchase a home with as little as half a percent for thirty years!
Good luck making it threw the hoops you will be requested to jump through!
Since this is not a traditional check your credit loan they will ask for A LOT of documentation. They will ask for that same information AGAIN. The good thing is they give you a folder to keep all those documents in and filed so if you stay organized it can be completed quickly. I am not a patient person by any means so I email my counselor constantly. I know that when it is done it will totally be work the extra 18 days of extensions. They take the time to make sure your house will not have any issues immediately. It is worth it.
Thanks to the great priestess Munak, email is firstname.lastname@example.org. :* in case you tend to keep in touch, my email is email@example.com. thanks.
It is a membership organization that is the intermediary between buyers and the two mortgage lenders who have committed to work with them...B of A and Citigroup. NACA works with buyers to make sure they are mortgage worthy and determine a reasonable monthly mortgage payment one can realistically afford. Once they approve you as mortgage worthy, their lending vendors (mentioned above) make the loans. They will only do 30 year mortgages and the rate is FIXED.
As far as I can tell they are the cheapest money around and give you the option of buying down your interest rate. They don't determine how much money they will loan you, rather they determine how much of a mortgage payment you can afford. I am qualifed by Citigroup to have an $850 monthly mortgage payment and in the price range I am looking, with the money I have to put down, I am getting a rate less than 1%.
They offer the same interest rate to everyone, regardless of credit score. Right now their starting rate is 3.5%. I have money to buy down my rate, which helps me to get the kind of home I want and get my payments to $850 a month. If you go to their website and click on Member, then click on "mortgage calculator" you can play around with it to see what kind of payments you might make. It may seem a little confusing at first.
You can either enter the amount of money you think you can afford per month (in the first field) or you can put in the price of a home/condo/etc. in the second field. For instance I know they lend me money if I can get the figures to work out so that I am paying $850 a month. I have been looking for duplexes up to fourplexes because they will calculate 70% of those rents as income. So in field three you click on the drop down menu to select condo, single family, etc. NACA will allow you to have up to a four-plex. Skip field 4 and field 5 "Principle Reduction" is where you enter the amount of money you might have to put down. If you have no down payment that is not an issue with NACA. (which is how they help folks who can afford a mortgage, but cannot get a loan because of bad credit or no money down).
Field 7 is "Buy-Down amount". If you have any money to put down you might consider buying down your interest rate rather than using it for a down payment. If you enter figures in there you will see that the interest rate goes down, as you click thru all the other fields and click on "OK" at the bottom. There is also an "Amoritization" button which will show you all payments for 30 years.
What I found out is that I can get a lower monthly payment by using my money to "buy down" the interest rate as opposed to a down payment. In my case, with the amount of money I have and the home price I am looking at, in about 10 years I wind up breaking even on the money that I used to lower the rate. (that money is not a down-payment and will not lower the loan amount). But for a 30 year loan, it pays me to use those funds to lower my interest rate...and I wind up with a lower monthly payment.
I was introduced to them by some friends who had very bad credit (not so much an issue with NACA....more of interest to them is can you afford the make the mortgage payment for the long haul). They did get into a house when there was no way they would have done so otherwise. Today, over 6 years later they have nothng "bite them in the butt", and have only gotten support from NACA when they ran into some financial difficulties.
Once you purchase you remain a member and they are there to assist you if you have troubles making your payments. They have specific relationships with both Bof A and Citigroup, who all are invested in keeping folks in their homes.
When I contacted my counselor at BOA, they couldn't explain to me what happened. I was transferred to a more seasoned counselor who suggested I contact my congressman.
I finally received a FedExed envelope from BOA stating they closed my request because they hadn't received the requested documents. Clearly, the left hands don't know what the right hands were doing.
I realize my 2% mortgage is good, but our balance is 455k. Our home values are down as you know, it would help us immensely if we could lower the principal. Wells Fargo are denying this request.
Help us please. They only try to harass us and they offer short sale or deed-in-lieu which is not acceptable. They are no help. We need someone to listen to our needs. We are paying on-time.
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 firstname.lastname@example.org
"agents" our NACA are only for their own profit they don't help you please me and my husband be and still fight in a nice rollocoaster thans for "agents" like these one keep contact with NACA
please is just a humble opinion
It is safe and everyone help you takes very good patient time but even with HOMEQ/BARCLAY...Naca helps us 100% of course you need to follow NACA guidelines and you can have the opportunity to ask for a counselor and negotiator
I have worked with others from California as well as other states to get them through the NACA process fairly quickly.
Your Trusted Advocate,
Real Estate Professional
Your Trusted Advocate; Expert Customer Service, Proven Results!
Then we read on another website the truth: naca receives money (from the government i spz) for every loan (like ours) they accept into their 'remodification program'. So, from our experience, don't waste your time with NACA!