Naca dropped the ball!!

[sarge]

Michigan,

I have read of someone else here who had to start over. Not sure of email address at NACA but the biggest fish there is Bruce Marks. Cant help with the email though. Good luck to you.

[michigan tsunami]

Thanks Sarge, Being self employed makes this a much harder process than turning in pay stubs. I REALLY can't believe this is happening. I was hoping for an approval any day.

[helpsavemyhome]

Sorry to hear this is happening to you...call the main NACA number and ask to talk to a supervisor. If you don't mind me asking, did you owe Amex over $5k on one account? The reason why I am asking, is because NACA had told me also, to stop paying credit cards, but to try to work out a hardship plan with the account I had that is over $5k because they are likely to sue. I guess if it's under $5k they usually do not sue...

[michigan tsunami]

Helpsavemyhome, amex 12k. I received an email from Naca I wasn't supposed to see. Basically admitting where it was fouled up. I'm supposed to resubmit all my paperwork this weekend and have an appt Monday. Groundhog day anyone?

[tobias030]

hi does anyone know what principal foreberance means?

thanks

tobias030

[gray517]

michigan tsunami

I have received 2 modifications thru naca and many others have gotten their mods thru Naca, I really do believe the problem lies with CW/BOA and not Naca any problems or issues me or others have had can be directly linked to CW/BOA incompetance. If you submitted docs to Naca in Jan and they submitted those to CW, it has been 6 months and if CW is just now looking at the Naca proposal, they are mostly likely asking Naca for updated Docs since the original ones are 6 months old and not current. Naca has a contract with CW to review thier proposals, however there is no time limit on how fast they must do it and unfortuneately Naca can't make them go any faster, so of course CW drags thier feet and takes as long as they can to review the Naca proposal. Our first mod took 90 days for approval, Naca submitted to CW on 10/3, got approval 12/12, but took almost 30 days to get docs (had to get Naca to call them)got docs on 1/9, took about 2 weeks to update account, but this 2nd mod we didn't ask for but gladly accepted sent the docs back on 4/7 and my mod is still not processed and the account not updated completely (they partly updated it yesterday) I had to call every day and emial everyone I could think of to get them to at least start the update. The problem = CW/BOA are idiots who do not know which end is up and at least 1/2 of their employees are in India and 95% of them do not care if we lose our homes or not. Naca does care and does fight for the homeowner. Take a deep breathe, resubmit the required docs, have a drink and then next week call the advocacy dept and emial the Barbara Desoer pres of BOA home loans with your story. Goodluck!!

[helpsavemyhome]

michigan tsunami,

Best of luck to you...I hope everything works out. I can't even begin to imagine how frustrated and stressed out you must be.

[gray517]

Originally Posted by tobias030

hi does anyone know what principal foreberance means?

thanks

tobias030

They take principal off the loan amount which makes your payment lower, but it is put on at the end as a balloon payment that is paid when a) the loan matures; b) you sell the property; or c) you refinance. Here is the actual wording from the Making Homes Affordable aka HASP govt plan:


If the option to forebear principal is selected, the servicer shall forbear on collecting the deferred portion of the Capitalized Balance until the earliest of (i) the maturity of the modified loan, (ii) a sale of the property, or (iii) a pay-off or refinancing of the loan

[j-nice]

michigan tsunami, I am in Michigan as well. NACA submitted my file to CW on 2-28, I am still waiting and didn't get any movement on my file until I emailed B Desoer, president of homeloans at BofA on May 8th. I stopped paying on my Amex (and all other credit cards) in January. My Amex account has been unpaid for about 130 days and has been turned over to GC collections which is Amex's own collection company. Basically at the 185 day mark Amex will charge off your account and sell it off to an outside collection company who will then begin to pursue collection efforts and can sue. If you do get a default notice and are required to appear in court make sure you go and take with you a listing of all your monthly expenses and your file on the mortgage modification you have been working on for 7 months.

I have spoken with two bk attorneys and I will need to file by end of August. I am hoping to have the mod with NACA/CW completed soon so I can work on my 2nd with Nat'l City and then file chapter 7. I don't know if this will help you but I did speak with a collection officer at GC yesterday regarding my account. I explained my situation (60% loss of income) and working on trying to get a mod. He was able to put a hold on my collection activities until the end of this month. It's not alot of time but any time right now helps ease some of the financial stress in other areas. Don't be afraid to contact Amex to see if they will work with you on slowing down their process. Good Luck.

[michigan tsunami]

Gray517, I got an email from Naca that I wasn't supposed to receive stating where their (Naca) mistakes were made. Yes we all make mistakes, but Naca seemed so thorough. I wouldn't have been surprised if it was a CW blunder, but I am surprised it was a Naca blunder.

[michigan tsunami]

j-nice Could you imagine getting an email stating you need to start over? If I was a w2 employee that would be one thing, self employed is a whole different matter. Bringing our sad story to court will help you think? It really bothers me that Amex only became a bank to tap into the tarp money. Now they want to sue me in these tough Michigan economic times. The recession is going to end for the country this year yet Michigan will remain entrenched as we have for the past 5 years. I notice the moderators don't seem to get involved anymore. Liability perhaps?

[j-nice]

michigan, I would freak out if I had to start all over. As it is, I have approximately $55K in credit card debt AND I returned my lease vehicle 12 months early (of course GMAC is looking for their money too). I only have a matter of two months or so before the cc companies will sell of my debt and the default judgements will start coming. So yes, this is very time sensitive for me. Had I known the real trouble I would be in a year ago I would have started searching for help at that time, but I kept telling myself things will get better...and then the bottom dropped out and continues to do so. Things are bad in Michigan right now and they are going to get even worse when dealers officially close, plants close, suppliers close, etc.

I have been told (actually by dthom on this forum) and a few others if you can show the judge the serious hardship that you are in then the judge may be likely to tell the collection company you are uncollectable. You do need to have a plan B in line just in case that doesn't happen such as bankruptcy. Problem is, when you file bankruptcy getting a modification is 10 times harder and longer and more paperwork and waiting more...it's all just so sickening that it is taking so long for some of us!

I am sorry that you have to start over. But on the flip side, maybe your file will fly through quickly. There are some people on this forum who have recently received NACA approvals within 30-45 days of submission. GOOD LUCK and stay positive!

[dthom]

MIchigan

My son was being sued a while back by a auto finance company, he had voluntarily turned a vehicle back in due to unemployment back in 2006. A year later they took him to court. He called an attorney who told him that in his response to the court he should ask for the case to be dismissed due to the fact that the reason he had to turn the car in was because he could no longer afford the $500 payment. Even a year later, with a family and all he was still not able to afford it. The attorney advised him to make a list of every bill he had, the cost of groceries, dr bills, any r/x , rent, even told him to detail down to the cost of diapers for his baby at the time. Then he was told to show what his income was. He came out in the red. When it got to district court, the attorney for the auto finance company said they could see there was no way he could afford to pay the deficiency on the auto loan after the auction of the car, and told the judge they were going to charge off the debt entirely. I have told this same thing to more than one cc company, I let them know that I would go to court if they chose to sue me, but how did they expect the judge to find in their favor when I could prove that I did not have the money to pay even a small payment to them let alone the amount of money they were asking for. So far I haven't been sued, but if I am prepared to fight. I have always been a good payor until all this mess happened. Now some of them act like we are all some kind of deadbeats who never intended to pay our debts. How do they sleep at night after making so many people feel like crap day in and day out.

Hope your second time with getting the mod filed goes faster. Like j-nice still waiting since January for word of approval from NACA.

[michigan tsunami]

Thanks dthom, I will put together a financial statement for the courts. I'm sure it's not pretty. Did your son answer the courts himself or hire an attorney? It's my sons graduation day today and all I can think of is this damn modification blunder. The good thing in all this economic mess is that he got an excellent financial aid package for college. His 4.0 gpa didn't hurt either.

[yaya01]

Michigan,

May I ask how exactly did NACA drop the ball? Do you have to resubmit all the paperwork because it is outdated or because NACA lost it? I'm asking because we are also self-employed and our filed was submitted on 1/20. We are still waiting for an answer and it has been almost 5 months. I'm worried that CW/BoA will ask for all the paperwork again.

Thank you.

[dthom]

Michigan

My son did everything himself. Congratualtions to your son on his graduation. My Nephew just graduated ( my boys are 30 and 32),and he also managed to get some great financial aid, as well as a few scholarships. Going to Wayne. I know what you mean, this whole modification thing is enough to drive you out of your mind. We are not self employed, but still have been waiting since 1/26. Calling NACA again next week. Get this I received my statement from CW/BofA today for my payment that was due June 1st! Guess they've figured out I am not able to pay until at least until the 15th so point in mailing it to us on time huh? LOL

[jdubu2]

Hi all,

We too are being sued by Amex. we owed 12,000 but we have about 10 other cards totalling about 70k. Amex is the only one to file suit, we have not paid CC since 2/08. all the others including another Amex. for over 8k have not sent anything other than the usual bill showing we are late (duh! lol) we are just starting a Bk, and then we will work on the mod. we are 2 months behind (only because CW/Bof *******s won't take over 2k in fees and late fees off) We requested a forebearance in January and although we called every month to make a payment and ask what was happening with the process (supposed to take 30 days) when they turned over to bofa nothing was on the website, so I called and was told it was cxld because we did not follow up! I just said then what are you going to do for us now?? because everything you just stated is a lie! I told them we need a modification, that we are going to file a Bk and that I will talk to a Lawyer about their tactics since I have documented everything and every person I have talked to from the begining of January!!! the guy was like.. ummm.. well we could try to do a modifcation, but you need to send in blah blah blah.. I did, says we are in active processing. I am merely buying time sice we have a fixed 6% loan they won't really look at it, they have no clue what my family has been through... we lost 2 brothers a mother and our son comitted suicide in June of last year (my husband found him) my husband is on disability and has been since for post tramatic syndrome (he had never missed a day of work before) it has been a nightmare that doesn't seem to end. I will not give up my home, if we end up losing it everyone will lose...... that is a promise ;-) by the way I live in California, owe 345k and our home is worth 270k anyway don't give up the fight, if we can live through losing a son, then fighting these crooks is going to be easy!

[michigan tsunami]

yaya, I was submitted March 5 after 2 months of submitting 200+ pages of faxed bank statements self employment forms etc. I faithfully called Naca and CW every week. About a month ago CW advocacy said (even though their not supposed to) that they don't have docs. I emailed my naca counselor who assured me everything was fine and done properly. Thursday I got a voicemail stating they needed insurance docs,authorization for new credit reports, 6 months of bank statments clearly stating business expenses from personal,updated self employment worksheets etc. I called Naca who forwarded me an email I was never intended to see stating how my file was submitted incorrectly. I have two business bank accounts and they were not tallied correctly. Naca called me on Friday and apologized for my recieving the email I wasn't supposed to see and that they are human etc. To make a long story short. I need start from scratch and you know being self employed, that isn't easy.

[michigan tsunami]

jdubu2 Im told you should work out the mod before bk. Are you hiring an attorney for the amex issue or are you going to deal with it in bk? I need to be careful because I am self employed and have an SBA loan so bk needs to be a last resort or things snowball.

[jdubu2]

we are doing Bk first, mostly due to amex... but also we have been turned down 2x for mod with Cw because we are a fixed 6% they don't want to work with us, we can pay our payments as long as we don't have CC. but the threat of freezing our accounts made us move on the Bk. Naca said that the bk won't change the outcome of a mod. cuz our credit was already bad, Bk will probably help us. I have no idea what our fico is...can only imagine! someone on here said it only lowered their fico by 30 points??

[yaya01]

Thank you michigan, I'm keeping my fingers crossed hopping that they do not ask for everything all over again. Being self-employed (S Corp), last time I had to really "play" with the numbers on the statements before submitting.

We are waiting on the mod to file a personal bk. It is very complicated with SBA loans, business assets and business credit on top of personal debt. It would be easier if we were dissolving the corp but we are not. It's our only source of income. We are 10 months behind on mortgage but current on everything else in order to delay the bk until we have an answer. Either way we will have to file to strip the 2nd (HELOC with Wamu) if they don't want to settle. The key is to plan ahead with the advice of an attorney(s). For us at this time, everything depends on the outcome of the mod.

[michigan tsunami]

Yaya, you also have an sba loan? Did you have to personally guarantee it? If so, you're able to file bk without jeopordizing the sba loan? Are you trying to modify your 2nd or hoping to disolve it in bk? We are also an s corp. sounds like we are in the same boat. I have a $43 heloc, that originally was part of the Naca solution. It would be nice to lose that in bk if possible. We are $60 k under water.

[yaya01]

All our business debt is personally guaranteed. In our case, we don't have to dissolve the business because we will continue to pay the business debt after filing the personal bk.

We have a $96k HELOC and still current on it because with the current interest rate the monthly payment is only $200. NACA would not do anything with it because it is with a different lender than the 1st. mortgage and I haven't tried to modify it because we just want to get rid of it. We are in active foreclosure since February so at this time I can only handle the stress of modifying the 1st. Once that is done or if we get foreclosed, then we will deal with the rest. Nevertheless, we have already consulted with various attorneys regarding the bk and got conflincting information so it is very important to check with more than one and do the research on-line.

Since our largest expense is the mortgage and we are not paying it to keep current on everything else, we decided to pay off part of our business equipment in order to reduce our monthly expenses. Big mistake, once the equipment is paid off it becomes a free and clear business asset and since we own the business, it becomes our asset. I'm glad we only paid off part of the equipment and the attorney said we can use the "tools of trade" exemption. Of course he told us not to make another move without consulting him first so for now, all we are working on is getting the 1st mortgage modified.

Once we get the modification or foreclosure, we will try to settle with the 2nd so we can file chapter 7. If they do not settle, then we would file chapter 13 to strip the 2nd and get rid of the personal credit cards. We don't have much personal debt but, for us, getting rid of the $96k is more than enough reason to file bk.

We are in Las Vegas, Nevada and up until a couple of weeks ago we thought that getting rid of the 2nd was going to put us at "water level" but our property value has gone down another $100k in the last 2 weeks alone. I think it is because of the type of property, half acre rural estate, because they are just not selling. Other parts of the valley have not had such a decline in the last month. So, we owe $516k and according to Zillow, it is only worth $270k-$375K. 30 days ago it was at $416k which is what it has been at for the last year. We owe CW $420k and NACA is asking for a principal reduction to $388K. We think the price will come back up to at least $400k but if they don't accept the NACA proposal or something very similar, we will be more than happy to walk away. Well, not more than happy because we have small children but, it just doesn't make business sence to stay.

Sorry for such a long post.

[michigan tsunami]

Yaya01, I would love to file BK but I have an SBA loan that basically states that I need to be financially sound personally or it could be called due. Also, my home is liened (3rd position) so if I lose my house, they could also call my sba loan due even though it is worth way less than I owe. Although, I always wondered whether the bank would call it due since they are still getting paid faithfully each month. I feel like I'm playing russian roulette sometimes. I spent all weekend doing all new financials for Naca and have an appointment at 11:00 today. Wonder if they will offer CW something different this time. Income has dropped since our first submittal. Nevada has it rough like us. Just wait until the next wave of auto job cuts hits. It's going to get really ugly here

[michigan tsunami]

Spent all weekend working on financials for Naca.Faxed 58 pages. Had an 11:00 phone appointment today. They didn't call. Keeps getting better.