bankruptcy

HomeForumsPurchase Programbankruptcy

This topic has 6 voices, contains 19 replies, and was last updated by  mhairston 711 days ago.

Viewing 15 posts - 1 through 15 (of 20 total)
Author Posts
Author Posts
July 12, 2012 at 5:53 pm #1643

kayya75k

I am in the process of filing for BK due to a foreclosure in 2010 and a vountary repo in 2011..
can I still buy a home through your program if in the process of filing for BK?

July 12, 2012 at 6:48 pm #1647

TTrumble

Hello kayya,

Unfortunately, you will be unable to buy a home under any means for at least two years after going through bankruptcy. You will need to rebuild at least a one year on-time repayment history after the bankruptcy before you begin the process of seeking a new mortgage.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

July 18, 2012 at 12:16 pm #1831

bmw804

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.

July 25, 2012 at 4:01 pm #2011

kayya75k

TTrumble,
What if I hold off on the BK until after the purchase? Will I qualify to buy a house with your programs having a foreclosure 2 years ago and a auto repo 1 year ago?
I have a schedule workshop this weekend..if you can’t help me then I would cancel..
Thank you for your help.

July 26, 2012 at 12:29 pm #2027

TTrumble

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

July 26, 2012 at 12:38 pm #2028

TTrumble

Hello kayya75k,

Your foreclosrue and repo are going to be bumps in the road toward buying a home, so expect to provide docuemntation and letters of explanation on both.

It’s the second part of your message that troubles me. If you are planning on filing BK, that implies that you have significant financial issues that will at the very least delay your ability to become qualified. Furthermore, should you qualify to buy a home and then file BK shortly thereafter (especially within a year), you would likely jeopardize the home and even potentially be investigated for mortgage fraud.

What you have have explained here, my advice to you is to concentrate first on getting your financial affairs in order before attempting to buy a house, even if it delays you by a couple of years. Bankruptcy and buying a house just don’t mix.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

  • This reply was modified 785 days ago by  TTrumble.
July 27, 2012 at 6:47 pm #2058

mhairston

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?

July 30, 2012 at 8:55 am #2087

TTrumble

Hello mhairston,

In your situation, you are okay. As I’m sure you have noticed, several people have inquired about bankruptcy in this thread, so I’m sure some of the answers could seem confusing. In a chapter 13 you are making payments, so as long as they have been consistently on time there should be no problem.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

September 14, 2012 at 5:55 pm #3059

mhairston

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.

September 15, 2012 at 1:32 pm #3070

TTrumble

Hello mhairston,

I stand by my previous statement regarding Chapter 13 bankruptcies. You are not the first person to have asked that question. When another member did first inquire, I made sure to research the question before I responded. While I don’t recall my source immediately, I remember that the answer made sense since it falls into line with our policies regarding delinquencies, charge-offs, etc.

I am in the process of re-locating my source for the information. Until then, I stand by my original reponse to you. Two years after the discharge of a Chapter 7, or after two years of consistent on time payments on a Chapter 13.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

September 15, 2012 at 2:44 pm #3072

mhairston

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!!

September 16, 2012 at 3:58 pm #3082

notamused

mhairston, from what I have read, the program was designed to give MCs the ability to “advocate” for worthy candidates. MCs are able to use “discretionary judgement” in deciding what satisfies given requirements. Unfortunately, it sounds like most MCs dont know this–it appears they dont even know what “discretionary judgement” is. It appears the only thing they understand is to “see what the underwriter (the computer program) tells them and then repeat the underwriter’s answer/results (the computer’s answer) to the client.” They have no idea what to do beyond that. It looks to me like that is the only qualification to becoming an MC–know how to type in information, press the magic button, and tell the client what the computer said. If it generates a new task list, that task becomes the new focus…for months…until it generates another new task list. There is no analytical thinking going on as far as I can tell.

September 20, 2012 at 2:19 pm #3130

Amayajessica

HI Mhairston,

Any news from your MC regarding the bankruptcy situation?

September 20, 2012 at 2:55 pm #3132

mhairston

Not a word from anyone. I have now forwarded everything to the NACA Services office in Jamaica Plain, MA.

September 20, 2012 at 4:31 pm #3133

Amayajessica

Hi mhairston,

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

Viewing 15 posts - 1 through 15 (of 20 total)

You must be logged in to reply to this topic.

Follow us on Facebook RSS Feed Follow us on Twitter