Adjustable Rate Mortgage Getting Ready To Adjust - Call NACA

     NACA which stands for Neighborhood Assistance Corporation of America first exposed and confronted Subprime and predatory lending back in 1991. They continue to be in the forefront of this impending disaster for millions of homeowners across the country who have no voice. Over the last few years there were millions of Americans that were looking to buy or refinance a home that were lured into a Subprime or a predatory loan. Subprime lenders of late have been notorious for signing people into adjustable rate mortgages that are not sustainable over the long run. They were focused on greed and making money, not taking care of the consumer.  Those teaser rates are great in the beginning but few realized exactly what would happen in the future once that rate adjusted higher.  The estimation by NACA is that over 2.2 million Subprime home loans made in recent years have already defaulted or will end in a foreclosure.

     NACA’s call to action is for brokers, lenders and the investment banks to stop foreclosures and modify predatory and Subprime loans to amounts that homeowners can afford.  The Subprime lenders say that high interest rates provide homeownership opportunities to people who have never had the opportunity to own a home before due to poor credit and lack of savings.  It is odd to think that providing high rate mortgages to people already struggling is good for the borrower or good for the community. The Subprime lenders had only one goal in mind and that was to reap as much money from the working class as possible and put it in the accounts of the broker, lenders and investors.  The impact of a foreclosure for a borrower goes far beyond the financial disaster.  The emotional damage may never be healed to the borrower and their family.

     NACA intends to fight through so that the executives, lenders and brokers are punished appropriately for the damage that they have caused.  These lenders knew that most borrowers would never understand or reject the complicated terms of the predatory loans that they reviewed for the first time at the settlement table.  The lenders also knew that these people have all of their belongings on a moving truck and their leases terminated.  With nowhere to go they have to sign.  The lenders knew that borrowers would never be able to keep their home after the teaser rates expired in the near future. 

     For more information and to contact NACA