October 21, 2021 at 8:30 am #77012
I started the naca program about a year ago,things were going slow so I decided to go the traditional route and bought a home back in Feb 2021(yes this year). I kept loosing offers and getting outbid so my realtor suggested that I go considerably over asking price. I was so desperate to get the house that I did. I got the house. Now after all the dust has settled, I am house poor! I had to start working a part time job just to have some extra money after I pay my bills. I am putting the house up for sale by the end of the year and was told by a realtor that I am going to lose money and take a big financial hit selling so quickly. I just need to sale this house and get something more affordable. It has been a very embarrassing situation for me but lesson learned. My question is…. what will I have to do to come back to naca and purchase a home through them? Will I even qualify to come back? I was submitted a few times for qualification before I left but always came back not qualified. @nelsont @ttrumbleOctober 21, 2021 at 9:48 am #77015NelsontMember
You absolutely can come back and nothing is stopping you. All members are allowed to buy 2 houses directly through the naca program. Other than that there’s no limit to how many times you attempt to go through the process.
The one caveat is that naca is for current non-property owners. What this means for you is that you can start the process and get qualified while you still live at your house but, you will need to provide proof that you sold the house (not under contract – actual deed transfer) before bank of america approves your purchase loan for the house you buy through naca. Judging by your post this should not be a problem. Just make sure you have a temporary place of residence lined up.
I’m assuming over asking price also means over appraised value??? The only concern I have is the value of your loan compared to the appraised or final sale price. If your down payment did not cover the overage then depending on how much it sells for this time around you will need to pay the difference out of pocket at the closing table. You will definitely need to have letters of explanation ready and all the paperwork on hand for naca. You won’t be able to roll the loan into the naca loan.October 21, 2021 at 10:29 am #77019
@nelsont thank you! The house appraised for $2000 over what I paid for it. I plan to list it after the holidays and move into an apartment when it sells. I spoke with a realtor who offers a flat fee service so I will save some on fees going that route but from what she is telling me I will still have to come up with thousands out of pocket for closing costs. It’s a hard lesson learned but I am glad that I will be able to come back to naca. Trust me I will stick it out and provide whatever documentation they need this time. Thanks for your quick response.October 22, 2021 at 8:53 am #77031BoodmoExpertParticipant
thank you!October 22, 2021 at 3:55 pm #77033TTrumbleMember
I am truly sorry for what happened. Sadly, it demonstrates one of the major reasons we are here. Even when it is better to wait, there are still plenty of realtors, lenders and others who will push you into a home you just can’t afford for the sake of getting a larger paycheck.
You can largely pick up where you left off with the NACA program. First thing to do: Please go ahead and get the documents in your file updated: Paystubs, bank statements, credit card statements, tax returns, W2’s, the whole nine yards. After that, schedule an appointment with your counselor to get the wheels turning again.
You will need to have the current home actively on the market for sale before you can be qualified, and will have to close on the sale of the present home before you can close on the purchase of the new home. As nelsont noted, you will have to provide the documentation on the sale of the present home and will have to clearly demonstrate how you are going to take care of any deficiency balance that is created as a result of the sale.
Please reach out to me personally and keep me updated. Yours is definitely a story I want to follow.
Online Operations, NACAOctober 22, 2021 at 6:02 pm #77044
@ttrumble sadly I took the advice of others I felt like I could trust and who I thought was giving me good solid advice. Ultimately the decision was mine but I have been left feeling betrayed by them. I definitely plan to sell after the holidays and come back to naca. I will take a big financial loss but I just have to get something more affordable. I will keep you updated on my progress. Thanks for responding.October 23, 2021 at 8:42 pm #77048Pure1Participant
Jlesa45 thank you for sharing your predicament. I am currently pre-approved by Citi Mortgage but know that I might be house poor if I go with them. This has helped me maintain patience.October 28, 2021 at 10:04 am #77093rashad3000Participant
Tim, this actually shows how sad banks are for allowing someone to purchase a home that makes her house poor. No way should someone be able to purchase a home then be required to work an additional job in order to afford it. I am all about personal responsibility, but the system also failed this young lady, from the realtor to the bank.
October 28, 2021 at 3:30 pm #77101TTrumbleMember
- This reply was modified 1 month, 1 week ago by TTrumble.
You nailed it, brother.
Even with the restrictions and safeguards put into place after the crash in 2007, predatory lending is alive and well in America.
This story not only speaks to the greed that is still out there but how our lack of financial education in this country hurts the average consumer, especially those who are often targeted by financial predators. It also demonstrates why the NACA program begins with a full budget analysis and determination of what the member can truly afford instead of how much can be squeezed out of the homebuyer.
What’s also sad is that because the loan hasn’t “seasoned” for 12 months, it takes any idea of even attempting a modification off the table. Unfortunately, @jlesa45 is simply going to have to take her lumps when selling the home, and that STINKS. But, once she’s out from under that weight, we will be able to help her recover and obtain a home she can genuinely afford.
Online Operations, NACANovember 1, 2021 at 4:14 am #77122MarjoriPendergastParticipant
Judging by your post this should not be a problem. Just make sure you have a temporary place of residence lined up.
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