The Mortgage Mess and a Program to Help Avoid Foreclosure
I don’t even know what to say about the current mortgage industry. I don’t want to pass judgment on the borrowers and I don’t want to place all the blame on the lenders. But there’s one thing I do know for sure - it is affecting the entire US economy. Ruthless scammers are trying to take advantage of the uninformed, savvy investors will profit from their misfortune, the government is making futile attempts to help, tax dollars will be wasted, home values are rapidly declining, and responsible borrowers are pissed…and rightfully so.
In my opinion, it’s just a hot butterball mess!
If you are one of the thousands of Americans who may lose their home due to an ARM rate adjustment, I highly encourage you to do YOUR OWN research, educate yourself, and explore your options BEFORE that time comes. For those who live in the DMV, you’ve probably heard of the NACA program - Neighborhood Assistance Corporation of America. From their website:
NACA is a national non-profit community advocacy and homeownership organization providing the best homeownership program in America.
It’s a national organization with various locations throughout the country, but if you haven’t heard of it, here are a few quick links to help you:
- Their refinance eligibility criteria.
- Their refinance questionnaire to initiate the evaluation process.
- Then you have to register and attend one of their 4hr workshops. Upcoming local workshops:In DC –
MLK Library
Date: 12/29/2007
Time: 10:00 AM - 2:00 PM
901 G Street NW
Washington, DC 20001Plymouth Church
Date: 01/05/2008
Time: 10:00 AM - 2:00 PM
5301 North Capitol Street
Washington, DC 20011The Arc Theater
Date: 01/19/2008
Time: 10:00 AM - 2:00 PM
1901 Mississippi Avenue SE
Washington, DC 20020Phone: (202) 328-6333
Fax: (202) 328-6388
Office Director: Keith JohnsonIn Bmore –
Enoch Pratt Library Northwood Branch
Date: 01/12/2008
Time: 10:30 AM - 2:30 PM
4420 Loch Raven Blvd
Baltimore, MD 21218Enoch Pratt Free Library (Central Branch)
Date: 01/19/2008
Time: 10:30 AM - 2:30 PM
400 Cathedral Street
Baltimore, MD 21201Enoch Pratt Library Northwood Branch
Date: 01/26/2008
Time: 10:30 AM - 2:30 PM
4420 Loch Raven Blvd
Baltimore, MD 21218Phone: (410) 783-0465
Fax: (410) 783-1525
Office Director: Ashidda Khalil - A summary of the entire 10 step refinance process that could potentially help you save your home.
If you are found eligible, their ‘current’ rate is 5.25% for a 30 year FIXED mortgage. This is NOT another lending scam that offers creative re-financing to lower your payments or cash out equity. Unless you are savvy with your finances or an expert real estate investor, ‘creative’ anything is the last thing you need right now. NACA is a legitimate program that helps homeowners who are struggling to pay their mortgage as a result of poor lending/buying decisions.
I wish I knew about NACA two years ago when I was buying. I’m not eligible now because I own investment property, but a close friend is using the program to buy her first home. She’s going to settlement on the 28th and I’m so happy for her! She locked in a 30 year fixed rate (less than 5%) AND she doesn’t have to pay any closing costs. From what I understand, it’s a lengthy process, the requirements are VERY strict, and the program requires personal accountability and volunteer effort. All good things if you ask me.
For someone who may be losing their home - primary residence - comfort zone - safe haven - pot to piss in and window to throw it out of - you’ve got nothing to offer but time and effort. And from my friend’s account, it’s definitely worth every minute. But don’t take my word for it. Check it out for yourself.
NACA: Neighborhood Assistance Corporation of America
[This is NOT a sponsored post, just a hat tip for a reputable organization that I support.]
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Have you read the Fabulous Financials comment policy lately?
Yeah NACA is A-OK, actually I know several people that has received homeloans through them. The purpose of them is because of the predatory loans that’s out there.
Im glad to know one program is on the ball.
I highly recommend them. You have to go through alot of steps to be qualified such as the 4 hour workshops, having ample savings in the bank and budgets forms, but it’s well worth it.
Unlike subprime lenders they actually just approve you w/o encouraging you to save, budget or give your good financial education.
NACA does it all!
ohhh thank you for that post. I know there are lots more folks affected than not. It’s such a touchy subject. No one wants to say “I’m gonna be homeless” after only having their home for a short time.
I’m not a home owner yet. I do however read and I know folks that this is happening too. Thanks again!
Naca is good for the people who need to purchase a home, but the ones that need to refinance, they are no help what so ever. I had a mortgage with an 11% rate ( dumb) and I went to them, trying to refinance. I went to 2 of their classes, and tried to get them to help me for 6 months. The last class I went to has more refinance than purchase customers.
They were of no help, as they were not set up to refiance. They told all of us to go home and work something else out. They were not very organized in their instructions. The second class was held in the parking lot, as no one was there to unlock the building.
Maybe they are better now, but this was only this past spring.
( I got mine modified to 7.5%)
I got my home loan through an FHA lender. Not as low a rate, but it’s still a fixed rate, and government backed. That’s another option. I’m a middle-low income family w/ 3 children and had to move out of U housing. Buying turned out to be cheaper than renting if I wanted to keep my disabled son in the program he was in. I also didn’t have the greatest credit going in (not good enough for my state’s housing program).
They also have refinance loans, though I had a new purchase loan. My realtor connected me with a Mortgage professional (I got really lucky, I found her by calling on a rental that I decided I couldn’t afford)
Hi! Your blog is really excellent.
NACA is a non-profit, community advocacy and homeownership organization. NACA’s primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership. NACA has made the dream of homeownership a reality for thousands of working people by counseling them honestly and effectively, enabling even those with poor credit to purchase a home or refinance a predatory loan with far better terms than those provided even in the prime market.
LiveMortgageFree
they have a good program.. my friend went through it.. and got their first home.. I on the other hand.. I started that process but did not finish.. but it is something I am looking into for my process this time around.
“The second class was held in the parking lot”….DAYUM! I hate to hear that.
I never heard stories like that, but Im sure they are organized by now
“Hot butterball mess” is putting it lightly. I’ve heard good things about NACA.