April 30, 2015 at 8:44 pm #15238
I’m a real estate agent listing a home that was purchased through the NACA program. The homeowner has documentation indicating the $25,000 has been released pending the sale of the home.
What concerns me is the $25,000 lien is rolled into the home loan. How is the $25,000 subtracted from the loan for a payoff?
May 1, 2015 at 12:08 pm #15263
- This topic was modified 6 years, 7 months ago by TTrumble.
So you’re making payments on an extra $25,000?
The (filed at the courthouse) lien documents I have seen do not appear to state a dollar amount.May 1, 2015 at 12:21 pm #15264
It’s a “silent” lien.May 1, 2015 at 12:24 pm #15265
Then why was $25,000 added to the mortgage loan?
Homeowner’s payoff will be $25,000 higher than it should be.
Purchase price of home: $135,000, orignal loan amount $168,000 (closing costs, etc. included)May 1, 2015 at 12:27 pm #15266
So the payoff for the loan when we get it under contract will be based on $168,000 and not the $135,000 purchase price?May 1, 2015 at 1:00 pm #15271
This is really a question for Tim Trumble.
@debbiek55 what’s on the HUD-1? Does the owner still have access to their web file? I bet it’s there.
I just looked up a few recent NACA sales in my area, and I’m not seeing Security Deeds that much higher than the purchase price (online courthouse records and realtor.com are very convenient).
My understanding is the lien is to keep the homes owner occupied and keep investors out. Probably a condition of the banks’ providing funding.
May 1, 2015 at 1:07 pm #15273
- This reply was modified 6 years, 7 months ago by TTrumble.
I knew I saw this question before, look here: http://forums.naca.com/?topic=i-need-info-to-sell-my-house-i-bought-with-naca-5-years-agoMay 4, 2015 at 10:45 am #15320TTrumbleMember
The $25,000 lien is NOT included in the loan. It stands alone as a second lien and is only enforced when someone violates the owner-occupancy requirement. There is nothing to subtract.
Furthermore, there are no closing costs on a NACA loan, as our agreement with the banks require them to cover the closing costs. Any funds above the purchase price in the loan would be funds that were used for repairs/rehab of the home, and are a legitimate inclusion on the payoff.
Online Operations, NACA
email@example.comMay 4, 2015 at 10:50 am #15321
Tim, out of curiosity, how many times have you seen the $25,000 lien enforced?May 4, 2015 at 11:01 am #15322
Thank you Tim – I appreciate your reply. This answers my questions.May 6, 2015 at 10:17 am #15405TTrumbleMember
Twice that I’m aware of. Both were cases where the homeowner bought another primary residence and tried to surreptitiously turn the NACA-bought home into a rental property.
There are cases where a legitimate exception is warranted, and such cases are taken to our CEO for approval on a case-by-case basis. We’re not out to get and extra $25K from anyone, just to make sure that the program is not abused.
Online Operations, NACA
firstname.lastname@example.orgMay 6, 2015 at 10:25 am #15407
Tim, I understand.
If someone is deployed and they are underwater, I’m sure NACA would rather them rent the property out than let it foreclose, correct?
Also, how in the world do you guys find out when someone DOES actually become an investor?May 6, 2015 at 10:30 am #15408
Hasn’t anyone told you? NACA volunteers visit your home on a monthly basis to make sure you still live there…. 🙂May 6, 2015 at 10:32 am #15409
Kmjatl, I don’t believe that for a split second. LOLMay 6, 2015 at 10:41 am #15410
Bruce Marks…he just knows 🙂
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