bankruptcy

My bankruptcy will have been 2 years discharged this November and I have reestablished credit. How do I go about getting started with the program. I heard about the program on the radio, but missed the session.

Hello bmw804,

To get started, simply log on to our website at http://www.naca.com, click onthe blue “purchase Program” button, then clidk on the “Workshop” button on the left side of the second section. You will be able to locate and register for the closest workshop to you.

Tim Trumble
Online Operations, NACA
http://www.naca.com

Hi Tim,
I would like some clarification. I filed for Chapter 13 two years ago. I’ve had two years of ontime payments. I’ve been working with a NACA counselor who told me one year ago that once I had been in bk for two years and assuming all other things are in good shape (assets, no new debts, ontime payments, stable income, etc.) that I should be sent to underwriting and get qualified. My bk won’t discharge for 3 more years. Is this bk information correct? Is it two years into Ch 13 or two years after discharge?

Hi Tim,
Well it’s more than a month later. After additional reassurances from my MC that all I needed was 2 years of ontime Ch 13 payments and all other qualifiiers in order my file should be ok with the underwriter. We sent my file to the underwriter on August 24, I got an email from my MC a little over a week later saying “the underwriter says NACA can’t help you until you have finished your bankruptcy. I’m going to find out more and get back to you.”. Of course I was very upset. I called and emailed both he and the office manager. I didn’t get any response from either one of them. I called again today and the office manager answered the main phone line. I told her what was going on and she checked my file while I was on the phone. She confirmed what the underwriter said and explained the NACA’s policy was that someone had to be two years discharged from Ch 13 before they can work with that person.

I really let her have an earful. I made it clear that had I known this a year ago when I started working with the MC I would have made different choices. I don’t have a problem with NACA having policies and that they adhere to them. My frustration is that I was told numerous times by my MC and once by you something different from what the reality is. Now I have wasted a year. I won’t be sticking with the program as I will have to wait another 5 years. My daughter and I should have moved out of our current place a year ago as there are multiple problems with where we live. But I figured we could wait a year if it meant being able to buy. Now we are right back where we started except I’ve spent a year faxing lots of documents multiple times for no reason.

I’m sorry to vent in this forum but this is the kind poor customer service that has so many of NACA’s clients upset.

Hi Tim,
Thanks for such a prompt response particularly on the weekend. I really appreciate it. Prompt responses are rare with NACA and, therefore, should be acknowledged.

Unfortunately, clear and consistent answers are equally as rare. You and my MC agree on this issue. However, as I noted above, the office manager maintains I have to be 2 years past discharge of my Ch. 13 in order to qualify. For me, thats 5 years out. The office manager started down the path of blaming me by saying “didn’t you read your booklet?” I stopped her saying the MC’s should be the most informed individuals. Further, I actually started this process in 2009. My finances weren’t ready for homeownership at that time. So I put it on the back burner. In 2011 I decided to see what was possible with NACA given my bankruptcy but also my much improved financial status (i.e. savings, income and debt). I tell you this to say that the booklet I had was from 2009 and I was not given a new one when I reactivated my file in 2011. My curiosity got the best of me last night and I checked my booklet. There was no such rule in it. In fact there are no hard and fast rules about the status of bankruptcy in the booklet. So, I went online. In the Purchase Program section under NACA QUALIFICATION AND MORTGAGE OVERVIEW I found the following:

“If you filed Chapter 13, you are eligible for NACA Qualification after discharge without a waiting period if you have addressed all other qualification requirements.”

This is yet a different (third) interpretation of this issue.

Also in this document is the following:
“While NACA reserves the right to require additional documentation or information, or to waive requirements at our discretion, the below guidelines will provide you with the general criteria that our loan originators and underwriters use to qualify Members for our extraordinary mortgage product.” This implies there is some flexibility under appropriate circumstances.

I want to reiterate, everything else about my file is on target for qualification. I’m not leaving anything out. I’m just so frustrated!!

HI Mhairston,

Any news from your MC regarding the bankruptcy situation?

Hi mhairston,

Hopefully NACA services will be able to help you. Good luck.