March 17, 2020 at 6:25 pm #66316
Hello everyone. This really is a vent session, and it’s not something I particularly want to do. For many years, I have been one of the strongest advocates of the NACA program. After my recent experience, I can no longer stand behind the program, unfortunately.
You can search my name in the forum to see my previous experience with the program. In 2015, my wife and I were the first family in Texas to close using the 15 year Wealth Building Mortgage. We used builder funds and a little bit of our own money to buy our rate down from 2.875% to 0.125%. It’s truly been a blessing. Our mortgage started out at $214,850 and is currently around $145,000. We are 1/3 through our loan and could not be happier.
While we went through the process, it was not easy. Lots of redundancy involved: submitting things we already submitted 50 times, etc. But I expected those things, so we just did whatever was asked of us and got it done.
We promoted the program and told everyone we knew about it. We went to workshops, did testimonials, and everything else we could to spread the word. My in laws were living in California at time. They retired and moved to Texas in 2018. They rented an apartment and last summer, decided they wanted to purchase a home. I decided to represent them as their Realtor and I got them into the NACA process.
My in-laws are not hurting for money. Their credit scores are 800-850. They are debt free. So common sense would tell you that they would be an easy deal. In August 2019, they went under contract for a new build. The completion date was set for late February, initially.
As time progressed, the closing date was set for March 5. Everything was good to go. My clients did EVERYTHING that NACA has ever asked them to do. It hasn’t been a situation where they’d get it done a week later, they would do it within an hour or less (remember, they are retired and this NACA silliness has been their full time job).
Back in early February, I sent an email to their MC verifying that the March 5 closing date would be a go. She never responded. As we got closer to that date, the builder started checking in to see how things were coming along. Remember, builders are used to dealing with efficient, competent lenders who close on time. This has been anything but that.
It became evident that someone (or multiple people) dropped the ball with NACA. You have a couple with perfect credit, no debt, ample assets, basically PERFECT homebuyers who are almost ZERO risk. NACA still couldn’t get them closed in time, knowing back in August that they had a February/March closing date.
On March 5, the builder (who told my clients when they went under contract that they don’t like to deal with these types of companies and warned of a $150 fee each day they are late closing) collected a $1200 check from my clients. NACA’s incompetence led my clients to have to pay a late fee. They were also threatened with losing their home and their earnest money deposit. When March 12 came around, there was still no closing. But one of the “regional directors” with NACA did escalate the file and was “pretty sure” that the file was would close by Wednesday 3/18. My clients wrote a $1050 check for late fees to extend. It’s now Tuesday and we STILL haven’t received a clear to close.
Every time my clients clear one condition, 2 more conditions are put into their webfile. Today, the 4506T form (a form they have previously submitted) magically became another condition. Again, they immediately got this document signed and turned in. That was early this morning. Still NOTHING!!!!
My clients have paid $2250 in late fees (again, they have not done ANYTHING to deserve this. This is 100% on NACA). They have given their apartments a 3/20 move out date (which would have been ample time to move out, had they had a competent lender). They are now in limbo because they haven’t even received a closing date. Someone in the office at the apartment complex has been tested for covid 19, so the office is closed. So they can’t find out if they can extend their stay for another week. They just don’t know what to do and I’ve really run out of advice. The builder is breathing down their backs and would have to collect another $1200 to extend them.
The builder has absolutely ZERO reason to believe that my clients are going to close at all. My clients have lost all faith and so have I. This has been such a ridiculous, preventable experience. None of us can in good conscience recommend this program to ANYONE!!!!! You hear stories of people losing out in homes because they used NACA. You hear stories about people losing thousands of dollars in EMD because of NACA. Until it happens to you, you just don’t know how frustrating and despicable it really is. For you to be a model client and do everything that is asked of you from beginning to end, yet you are treated like trash, that’s disheartening. I’m at a loss for words and I don’t even know what to tell my clients anymore. We just laugh about it because it’s become such a joke.
They are now at the point where they are looking at putting a deposit down on an apartment tomorrow morning. They just need a place to stay at at NACA has screwed them royally with their incompetence.
Again, I’m not someone who is disgruntled. I’m a NACA client is hi has seen the power of a NACA mortgage. But the program has just become completely inefficient, based on our experience. I’ve always heard that the program is only as good as the MC. I partly agree with that. At the same time, the higher ups can use some common sense and decide when they have a very solid buyer and stop with all of the useless, redundant nonsense.
They tell you that NACA qualification means more than qualification with any other lender. That is such a lie. Builders and sellers will laugh at any qualification that involves NACA because people have caught on. If I’m representing a seller, I will tell him that a NACA buyer will NOT close on time and that I’m not comfortable with it. If a represent a buyer who uses NACA, I will respectfully decline to represent that client. I just can’t allow another client to go through this again. It’s been gut-wrenching for all of us and we have no answers.
I love Tim Trumble to death. He is an incredible man and a faithful NACA employee. If it were not for him, I would have made this post 2 weeks ago. But I respect him so much that it hurt me to post this. The program has changed quite a bit, and not for the better. My wife and I went through a workshop to buy again using NACA. We decided that we don’t want to go through the process anymore because it’s just too unnerving.
My buddy (who has always been a bigger NACA advocate than me) has said he has turned down multiple NACA clients because the program is just too stressful.
Good luck to everyone. I hope that my clients close this week, but I literally have zero faith in that happening until it actually does.March 17, 2020 at 7:09 pm #66317SnillocSMember
I too think NACA is a great program and I’ve referred several people to the program as well. However, the issues that you and your clients have experienced are the main reasons why after dealing with NACA for almost two years, I’ve decided to end my journey with the program.
When it comes to a new construction, its just too risky. I’ve scoured these forums and others have made it very clear that 9 times out of 10, your closing will be delayed. These builders don’t want to hear that and financially I dont want the burden of having to pay a penalty to hang over me.
I entered into a contract back in February and have a closing date in September BUT I still didn’t trust that there wouldn’t be any issues with NACA. NACA is understaffed, the MCs are overwhelmed and its honestly not their fault. But I’m making one of the biggest financial decisions of my life and can’t be stressed out about an MC that can’t return an email or call for 1-2 weeks or having to resubmit the same thing over and over or having an MC who’s first language isnt English and having to deal with a language barrier. I have been working with NACA for almost 2 years and STILL have not gotten qualified because my MC made an error on my payment shock which caused my qualification to be delayed for an additional 3 months AFTER I was already in underwriting!
Out of sheer frustration, I applied for an FHA loan thru the builders preferred lender and was approved in two hours. Yes, I’ll have to put more down and will have a higher payment but I bet I wasn’t stressed during the process.
I love NACA and applaud what they are doing but I will be the first to admit that the program is NOT for everyone, not at all. Good luck to everyone currently working on getting your dream home. Hang in there!March 17, 2020 at 8:39 pm #66324
You’re not alone… We signed our contract 3 MONTHS AGO, we always get same conditions same papers over and over, my builder is not charging me for now but I’m sure they just done with me if I don’t close this Friday and I don’t see that happening, I been living with different family members since January 24th because my contract ended that day, even if I address the conditions same day I have to wait almost a week to hear back from the lender and what I get MORE CONDITIONS, I don’t wish this to my worst enemy, Naca is a great program but this is not for everyone 🙁March 17, 2020 at 11:03 pm #66333
Good Evening everyone. I have had my ups and downs during my new construction process and was issued my Final Clear to Close last week. I to was in a situation where I had to move from my residence and still hadn’t closed. With that said, I can’t or wouldn’t totally blame NACA on the delays. There were problems that could have been handled differently and I could have closed a lot sooner. The builder was determined not to work with our title company and took 8 days to sign, thus delaying the closing.
My Mortgage Counselor, and Closing Coordinator were all fighting to get me closed prior to my having to leave my rental on the 16th. At the last minute the underwriter wasn’t comfortable with the “wording” on the last addendum and it had to be changed and an Change of Circumstance had to be processed. NACA was able to get this done in two days and I was sent a Final Clear to Close with a signing date tomorrow March 18th. I am waiting to received my Closing Disclosure and an appointment with a notary as I am a remote member.
I feel horrible for the experiences both of you have been through, especially with new construction which was supposed to be smooth sailing and everything ready to close at the scheduled date. The stress with the changes and addendums (eight to be exact) were far by the worst… However, there were upgrades that we requested and received and it is totally worth it.
Was there anything I could’ve done differently? Absolutely not! I had to advocate for myself, call the Mortgage Dept., and keep in constant contact with both realtors, sellers and my NACA realtor and be a “polite pest.” I definitely could not afford the house without the help of NACA. I am hoping someone can chime in give you encouraging words and direction to assist in getting your client closed on their home.
CassandraMarch 18, 2020 at 7:29 am #66338
I’m so happy for you Cassandra you finally got your CTC, same here we had little problems that could have been handled differently and I could have closed a lot sooner, I’m just tired and at this point I don’t know what else to do …. but about that someone I think I found it , I remember after emailing everyone on naca, I was going to the FB page just to vent myself but I decided to sent a message though the chat , that same night that person I don’t even know if a she/he answer me and was so good to me, call me crazy but after that message even my closing coordinator which didn’t answer to ANY of my emails it’s answering now, which it’s good because my MC is out for 2 weeks and I least I can get some answer from somebody, to me all his or her Kind words meant a lot to me, it’s like somebody cares about you and you’re not just some ID # and another file.
God is Good and everything it’s on his hand now ??
Blessings for allMarch 18, 2020 at 3:35 pm #66355
Well, there is no update. The file is in the exact same place it was yesterday morning. The regional director is traveling. The MC is out of town. My clients have called everyone. The mortgage department said it’s in review with the bank. The file has supposedly been escalated.
My clients have decided that they will just go out to put a deposit on an apartment tomorrow morning. They are afraid that they will be homeless. Even if the builder agrees to extend their closing another week and charge another $1200, that does not mean that NACA will get them closed on another week. We are at day 13 after the initial closing date and still no luck. Also, if they rolled the dice and paid $1200 again, they would have to pay movers to move their things to storage, pay for storage, then pay movers to move them from storage to the new home (all while staying in an extended stay hotel).
This whole thing stinks.March 19, 2020 at 12:26 am #66375
I closed today! I repeatedly call the mortgage department and each time I called something positive happened. New construction should be EASY I don’t have answers for you but too much money is already invested to not see them close and get their keys. @timtrumble can you help these folks out? I know this forum is monitored.March 19, 2020 at 1:17 pm #66393
My clients are beyond desperate right now. They have called multiple people. They have been told that the file is at the bank. They were able to get an extension with their apartments until Sunday. They have to turn the keys in on Monday.
They told me that if they don’t hear anything by 4pm today, they are just going to walk away from the home. They are just sick and disgusted by this entire experience. They have been royally screwed over, again, due to 0 fault of their own. I was wrong about how much they stand to lose. They paid $2250 in late fees to the builder (this is after we were told that NACA will never allow you to pay late fees). They also paid around $10,000 in cash for upgrades. So ultimately, they will lose $12,250, in addition to the countless hours they have put into this, the mental stress, and the many credit checks, membership fee, etc.
One of the conditions was evidently an explanation of why they had excessive credit pulls. The only one who has pulled their credit was NACA. This is the kind of stupidity they have dealt with.
NACA has had many months to get them closed and will singlehandedly be the reason why they lose out on over $12,000. I forgot to add the deposit of $2500. So I think their total lose will be closer to $15,000.
This is a senior couple with perfect credit and ample assets.March 19, 2020 at 1:25 pm #66394
I just got Clear to close !!!
I can’t believe
God is goodMarch 19, 2020 at 4:43 pm #66400
Well, my clients were tired of the NACA shenanigans, so they decided to walk away, and I can’t blame them.
We just received an email from NACA informing us that they have to do comparables for the appraisal report (per the lender) which means we will not close tomorrow and it looks like we will go into next week and even that’s uncertain.
With all that said and all we have been through with this program (NACA). The money spent, the highs and lows, the stress and strain, we have decided to walk away. We are beyond pained, frustrated, and tired and can’t take their empty promises anymore and have to walk away.
We paid for the two extensions thinking we would be in a house by now but we find ourselves at the end our apartment lease, so we are forced to rush and find a new residence.
We felt we have done everything that NACA has asked us for and we have spent money to buy THEM time. How could we have gotten to close if NACA is still asking for things they should have cleared before we got to this point. Again, we are heartbroken, frustrated and exhausted and we don’t feel we can go further with this ineptitude and unprofessionalism.
We’d like thank those at *** Homes who were willing to work with us during this time. Thank you Nancy *** at *** Title for taking our calls and answering our questions, your patience and, going the extra mile on our behalf. Thank Rashad *** for your assistance, patience and understanding. You both are examples of those who take pride in their work and any home buyer would be lucky to have either one of you in their corner.March 19, 2020 at 4:50 pm #66401
This was my email to NACA as I forwarded them my clients’ email:
Good afternoon. It is with extreme disappointment that I have to communicate this to you. Mr. and Mrs. *** have perfect credit, plenty of assets, and no debt. We have no idea why a contract that was signed in August was not closed by the March 5 closing date. My clients are losing $2500 for their earnest money deposit, around $10,000 for upgrades that they paid outside of closing in cash, and $2250 in late fees from the builder. They have done everything asked of them throughout the process and are deeply saddened that this has happened to them. They were supposed to close on March 5 and gave their apartment complex a move-out date of 3/20. They have been living out of boxes for the past 2 weeks. They were able to get the apartments to extend them until Sunday. That gives them 2 days to look for and secure an apartment.
This is absolutely unacceptable. I have been one of the biggest advocates of NACA in the past 5 years. I can no longer stand behind this program after what has happened with my clients. I have communicated this to my other clients who were planning on going through NACA. I cannot let them go through what the ***’ have gone through. I wouldn’t wish it on my worst enemy. They have lost many thousands of dollars and it is due to NACA not doing its part, not to any fault of their own.March 20, 2020 at 11:59 am #66425jogearceMember
please keep us update on what Naca’s response is, if any. Although I was able to close on my home, I also had a bad experience.March 20, 2020 at 12:07 pm #66429NelsontMember
Without getting into the details because they have all been posted on here many times (multiple times each month for the last 6 months) the holdup is with bank of america, not with naca, and this holdup is consistent with all bank of america clients regardless of naca member or not.March 20, 2020 at 2:15 pm #66432
@Rasha3000 at church we say, “please don’t leave before the benediction is given!” I know this is not church but WE are waiting on the closing for your clients. I just feel in my heart that it will happen… If they can find temporary residence until they get their closing. I had a delay in closing and had to leave my rental, and closed two days later. I see the money they put out for upgrades, I was in the same situation. I started second guessing myself on the decision my husband and I had vested our hard earned money. I WOULDN’T give up and knew it was just a matter or time. If they are saying next week, I would hope and pray that B of A will give the clear to close. I know everyone has their own story but I am hoping the forum monitor will get in touch with someone to make it happen. Praying for your clients.March 24, 2020 at 4:09 pm #66501
The builder called me after I sent the above email. She offered to extend closing up to 2 weeks without adding any fees. I asked the builder if they could refund the $2250 in fees at closing. She checked with someone and got with me the next day. She said the best they could do is to waive any future fees for up to 2 weeks.
My clients put all of their belongings in our garage and are staying with us, until they move in. We were told that last Wednesday should have been the final close date. I spoke with a closing coordinator after that date was not met. She said they would get it to the escalation team and try to push for a closing ASAP. Yesterday, we received another email from NACA stating that the bank needed an addendum and that the contract was incomplete without it. The bank even wondered why an incomplete contract made it to their desk for closing.
We sent the concern to the builder and they sent the addendum. I’m immediately forwarded it to NACA and they confirmed that this was the needed document.
I have the same concerns of the bank: why was an incomplete document sent it to them?
Anyway, my clients ask me if this is it. I can only tell them that I’m not sure because every time we send in what they ask, they ask for something else.
I told the builder that the 2 weeks was probably far more than we needed and that we should close by Wednesday. I believe the builder pushed it out so far because they have no confidence that they will close.
Hopefully, we hear something soon.
In all of my deals as a Realtor, I’ve never seen anything like this. Every other deal closed on time or early. For a March 5 closing date to extend past March 25 is completely unacceptable and frankly, it’s a joke. We can blame Bank of America all we want, but we all know that NACA has to take some ownership in this. The MC did NOT do everything asked of her. An incomplete contract was submitted to the bank. My clients have been billed an extra $2250 in fees for no reason. Again, this is not fair to them.
The fees they have paid and the extreme anxiety this has caused have basically nullified the benefits of the program.
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