NACA’s Advocacy Campaigns – What We do & Why We Do It?

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2 Comments

  1. KanakaII
    Posted November 12, 2012 at 8:30 pm | Permalink

    I missed event in Las Vegas. We got behind in 2010 for three months. My husband had been non-retained in National Guard after 23 years and lost his Federal job with National Guard 7/1/2009. We used his 401 until it ran out and then got 3 months behind before he secured a job overseas. We owe $300,000.00 on a home in Vegas that is now worth approximately $189,000.00. We have an interest-only first at 6.25% and a second at $69,000.00, both are interest only. We have been trying to pay off bills and are current on house payments. Is there any hope for us to secure a PITI loan so my husband does not have to live overseas just so we ca make house payments. First is with Bank of America, who when I contacted them stated they are busy handling only people who are behind in their payments. Is there any hope or help for us, so my husband can come home and take a regurlar job and be able to have an interest rate that will be locked in?

    • Posted November 13, 2012 at 2:26 pm | Permalink

      Hello KanakaII,

      The sad fact is that it is much harder to get a modification when the mortgage is current. The bank cannot see that you are sacrificing elsewhere to do the right thing and meet your obligations. All they can see is that you are making the mortgage payment on time every month. It becomes a case of “actions speak louder than words”. You may apply for a modification, but the fact that you pay your mortgage every month tells them that you do not have a problem paying because you ARE paying.

      I have seen many cases where people take money from another source to make the mortgage payment. When people borrow money to make an unaffordable mortgage payment, they make TWO huge mistakes: First, by making the payment, they again tell the bank that they can make the payment without problem, because they ARE making the payment. Second, by borrowing money for the payment, they are only transferring debt from one source to another. Any consumer or financial advisor will tell you that is a guaranteed path to disaster. You now have two debts you can’t pay back instead of one.

      That being said, NACA will never tell you to not make your mortgage payment if you can afford to. Responsible home ownership is the foundation of NACA’s mission. But many people who can’t afford the payment make a mistake by draining their 401-K, credit cards, etc. to make the payment. Eventually it will only make the problem worse since you make it harder to get a modification and you are also depleting your retirement or creating another huge debt you can’t afford.

      Many lenders do have a “gray area” called Imminent Default. Basically, you must prove that you are about to go past due on the mortgage and cannot do anything about it, and one of the “Three D’s” must also be a factor: Death, Divorce or Disability. Reduced income through unemployment or business decline will not qualify.

      Most investors do require that the mortgage be at least two months late or qualify under Imminent Default. In some cases, the lender can grant a three month forbearance if you can show genuine hardship but are still current. This allows the loan to technically become delinquent and thus become eligible for modification when it would not otherwise. The only way to find out if this can be done for any individual is to try.

      The entire process can be done remotely by phone, fax and internet, so attendance at an American Dream Event is not required. The process typically takes 30 to 60 days when done remotely. To begin, please go to our website at http://www.naca.com and click on the blue “Home Save” button to start the process.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

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