Troubled Homeowners To Receive Free Mortgage Counseling

LOS ANGELES (CBS) — Thousands of troubled homeowners are waiting at the Shrine Auditorium for the “Save The Dream” tour organized by the Neighborhood Assistance Corporation of America.

NACA, a non-profit mortgage broker, promises to give overwhelmed homeowners the opportunity to get lower mortgage payments.

NACA counselors help people organize their paperwork and prepare a budget to send to lenders.

Major banks will have representatives at the event, which kicks off Thursday and ends Monday night.

More than 30,000 residents of the greater Los Angeles area are expected to attend. And while not all are guaranteed an easy solution, many of those in line — including Bill — remained hopeful that at least some relief would come.

“The situation now warrants that the banks give us a break, give us a hand,” said Bill.

  • Patricia Rosario

    NACA is back in LA June 2-6. We went to try and get help numerous times last time they were in LA. But received no assistance at all. Seems that they only help people that are behind on their loans. Not those who have tried to keep current on their loans from barowing from family, draining savings, selling everything they have, doing without food and medical necessities….. Just to keep current on their mortgage.

    We definitely can not keep up with our bills and mortgage due to pay and hour cuts and high medical costs. Yet we were told by Naca, the only way they could help us is if we stop paying our mortgage. On top of everything else, we do not want to take a chance in loosing our home. But that is what NACA is asking to MAYBE help us get a lower interest rate and lower the payment.

    Can this deceptive practice be looked into? Shouldn’t they also be helping the people who are “trying to do the right thing” and pay the people they owe? Is it right for them to ask you to stop paying creditors just to get help from them?

    Thank you so much for your time,
    Patricia Rosario

    • Tim Trumble

      First, let me clarify one very important point. NACA will NEVER tell you not to pay your mortgage. Our entire organization is based on the principal of fair, responsible home ownership.

      Fortunately, I was able to locate your file and am pleased to see you came to our Save the Dream event in Los Angeles today to try again. Patience and persistence are often the two most powerful tools you have in getting a modification.
      It is in fact the investors on most mortgages who require that you either be past due or able to prove that you are about to become past due (“imminent default”) in order to qualify for a modification. The reason why is very simple. By keeping the mortgage current, you are in fact telling the lender that you are able to make that mortgage payment each month regardless of your situation, making them less likely to consider your request.
      There is nothing deceptive about the practice whatsoever. One of the most important pieces of information you must have is a description of the hardship you are experiencing to explain why you are seeking a modification. Being current on the loan says you are not experiencing a hardship.
      Some investors are more flexible than others with the default guidelines, with some absolutely insisting on the loan being past due, and others willing to look at imminent default situations, but in every case the present status of the loan is a factor in qualifying for a modification.
      I applaud your persistence in continuing to seek the modification you need and sincerely hope your results today are in your favor.

  • lala63

    Most of the people in trouble now should have had “mortgage counseling” BEFORE they decided to “buy” a house that they could never in a million years afford in the first place. Here is a tip people … If you make $75K per year, chances are REAL GOOD that you CAN’T afford a house that costs $300K. Try figuring out your take home pay, your other expenses and then the ADDED expenses that come with owning a home – VOILA! See! It’s not real hard to figure this stuff out. I flunked basic math my Freshman year of high school and I knew back in 1999 that my husband and I could NOT afford a $250,000 house on our combined income of $100,000 per year. Seriously. What was wrong with these people to do this to themselves? Mesmerized by the all mighty granite counter tops perhaps? The big ole American Dream? And now they cry “boo hoo” Disgusting.

  • kaki

    the banksters had to have names on those mortgages or they couldn’t bundle them, lie about their value, and resell them at inflated prices. The names were the key to this multi- trilliion dollar deception. Signing factories had hundreds of employees signing one name when they realized that frauding future homeowners about their loans took too much time. and since they were breaking the law anyway, why not streamline it. No names, no bundling, no selling, no bonuses. Lie, tell them anything get that name and hurry!!!

  • kaki

    Yes. The liars, the cheaters, the frauds with their bonus’, they aren’t disgusting…just those people going after the American dream and failing. it’s probably the poor people without any political clout’s fault. Not the billionaires with political action committees and lobbyists and Ex banksters who run the fed reserve….and they cry “boo hoo”, .disgusting.

    • lala63

      Oh I didn’t say the banks were not guilty too. But that is a separate thing from the people who “bought” more house than they could ever afford. When the bank told me I should buy a $250,000 house because I “qualified” I KNEW I could not afford it. Just because they were willing to loan me the money didn’t mean I HAD to take it. I am also not specifically talking about people who lost their jobs, etc. I am SPECIFICALLY talking about the people that were stupid enough to “buy” a house that was more than they could ever afford simply because the bank ALLOWED them to “qualify” for it.

  • Banks Are Crooks

    These poor people are going to lose their homes due to foreclosure. Only 1 in 10 people get loan modifications and the ones that do re default in a year or so. The banks are not in the business to re modify loans and lose money on people who can not afford to stay in their homes, crooks. Foreclosure though is not the answer. If homeowners want more information on their options they should read this flyer and get more insight on what they can do. I ended up short selling my home and avoided foreclosure and glad I did. Hope the banks get their heads out of the sand and start helping us soon. Visit this link and get informed about other options.

  • Pattie

    Its not about buying more than you can afford. Its about pay cuts, hour cuts, and just plain layoffs. Who can plan for that? If you plan to be jobless……then your mortgage should be zero dollars a month. Is that possible? Our mortgage was only 20% of our income until my husband experienced pay and hour cuts and I got a cut in disability payments. I cant work and my husband took on a second job. We are trying…..but still not making ends meet. Definitely NO money for much needed medical care. Is this OUR fault?

  • KurtV

    “Boo-Hoo?!” Sounds like a few of you need some empathy training & some sensitivity in your words… One word: KARMA (enjoy!).

    FYI: I was a 1st time home buyer in 2006 as it was my goal to own by age 40. Oops! Who knew we’d be in a The Great Recession of our generation?

    My home sits at the bottom of the Hollywood Hills & the view itself is worth $100K! I love it. And realistically I should have NEVER been approved for such a HUGE loan! I didn’t know any better & trusted my own mother’s broker & my agent. Have I learned? ABSOLUTELY!

    I even got myself a loan mod with Country Wide/BofA! It only took “you’re being recorded” & the word “lawsuit” to get a call 12 hrs later from the President’s Office of BofA!

    I tried for a 2nd loan mod, but I didn’t qualify. After I learned that my broker tripled my salary to get me the loan(!), my last trump card was chapter 13… My credit was already ruined, so why not?!

    I will attend this event. I will keep my home as long as possible. It’s a live-work type situation & a GREAT write off!

    Judge as you will… I am happy. Yes, it’s been hard! And after my 4th year in the house arrived in February, I never will trust the cliche’s of: “the 1-2nd yrs are the hardest…”.

    If I only live here for 5 yrs: It’s been a learning experience (just like failing your math class!). FYI!

    Enjoy your Karma, my Dear…

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