The NACA (which stands for the Neighborhood Assistance Corporation of America) originally exposed and confronted Subprime and predatory lending in 1991. They remain in the forefront of this impending disaster for millions of homeowners across the country who feel that they have no voice. People who, over the last few years, numbered in the millions of Americans who were lured into a Subprime or 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 calls 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.
What Is NACA Doing About The Mortgage Crisis?
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. They have 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.
NACA’s Home Save Program is committed to assisting homeowners in everyway possible to lower the monthly mortgage payment to an amount that is affordable over the life of the loan. The options are a NACA refinance, a modification/restructuring of the loan or payment plan with the servicer or lender. If you are in a bad loan and need to refinance you may want to look at the NACA refinance product. They offer below market rates that have no points or fees. To see if NACA is offered in your community please visit www.NACA.com. NACA’s other services will assist homeowners to modify or restructure their existing mortgage to payments that are more affordable and sustainable. They will work with your lender to reduce your interest rate as well as the mortgage amount. The goal is to keep you in the property and out of foreclosure. In order to request NACA’s assistance you will need to complete their mortgage submission worksheet and attend NACA workshops.
NACA cannot help everyone with an adjustable rate mortgage from going into foreclosure. At least there is someone willing to stand up for homeowners across America and say that this is not right. Greed causes major damage in peoples lives and that it is not acceptable in our community and our country.
For more information and to contact NACA, visit http://naca.com/index_main.jsp
Written by Richard Yanez, Mortgage Broker. Richard has been originating loans since 2000 and has closed more than $50,000,000 in loan volume.
For more information, visit Adjustable Rate Mortgage Getting Ready To Adjust – Call NACA