Currently working with NACA....

[Katlewmos]

Hi Everyone...
Just wanted to start this thread as I am new this site. I came here for some insight as to how other members' experiences from dealing with NACA have worked out in the past. I am currently working with NACA to lower my interest rate because my Escrow has caused my total mortgage to jump up an extra $200 per month. I just started working with NACA in September, so only for a few weeks now. I commend them on posting updates to my web page and working with my servicer and documenting updates and whatnot. I have been speaking with the NACA representative at my servicer's office and I have her direct number, so anytime I have any questions, she has always returned my calls and answered any questions I may have to the best of her ability. She did forward my documents to the underwriter for review on October 13, so now, I am currently waiting the 30 day time period for a decision, as a really hope it does not take that long. I am making sure I keep up-to-date with any further documents they may request and forward those right away. I will definitely try to keep everyone updated as my case continues....

[lwillhite]

What has resulted in the two months since your original post? Please also feel free to post on the NACA forum at Neighborhood Assistance Corporation of America or e-mail ttrumble@naca.com if you have additional questions.

[Katlewmos]

Well, it took all of a day for CitiMortgage to decline my request for a home modification after they had received all of my paperwork. Then, about a week later, I received a letter from them stating I would have a new servicer as they had sold my loan. I felt betrayed a little because it was like, once they got wind that I was trying to lower my payments, they hurried up and got rid of me as a customer. As of Dec. 2nd, I have a new servicer; Midland Mortgage. I just recently had a phone interview with a NACA representative, so they have resubmitted my request to the new servicer as of 12/16 and now I am waiting for their response. CitiMorgage declined my request because I was up-to-date with my mortgage payments. As of today's date, I am not, so who knows what will happen.

[lwillhite]

Hello Katlewmos,

The sad fact is that it is much harder to get a modification when the mortgage is current. The bank cannot see that you are sacrificing elsewhere to do the right thing and meet your obligations. All they can see is that you are making the mortgage payment on time every month. It becomes a case of “actions speak louder than words". You may apply for a modification, but the fact that you pay your mortgage every month tells them that you do not have a problem paying because you ARE paying. In fact some investors will not allow a modification at all if you are not past due.

I have seen many cases where people actually borrow money from another source to make the mortgage payment. When people borrow money to make an unaffordable mortgage payment, they make TWO huge mistakes: First, by making the payment, they again tell the bank that they can make the payment without problem, because they ARE making the payment. Second, by borrowing money for the payment, they are only transferring debt from one source to another. Any consumer or financial advisor will tell you that is a guaranteed path to disaster. You now have two debts you can’t pay back instead of one.

That being said, NACA will never tell you to not make your mortgage payment if you can afford to. Responsible home ownership is the foundation of NACA’s mission. But many people who can’t afford the payment make a mistake by draining their 401-K, credit cards, etc. to make the payment. Eventually it will only make the problem worse.

The timing of the denial and the transfer is indeed curious, but the two events are a bit too close together to be directly related. The decision to transfer the loan would have happened well before the denial. If anything it was the other way around: The decline was so fast because you were going to be transferred anyway. While Midland is not one of the servicers who has signed an agreement with NACA, they do accept our proposals and we do get modifications from them. Please keep us updated on your progress.

[Katlewmos]

Hmmm....I really find that hard to believe; the incidences being so close together that they are not directly related. I am really not sure what to think at this point; however, CitiMortgage knew some of the issues I was going through and I told them that I was applying for a home modification before it got so bad that I could not get out of it or risk foreclosure. I prided myself on paying on time, everytime since I got my home 6 years ago. I agree with you when you say most servicers automatically decline your request if you are up-to-date on your mortgage; I don't think they are looking at the "big picture" when they do that. CitiMortgage came back wayyyyyy too quick and said "Nope!"
Thank you for your insight! A lot of what you said makes sense.

[carolinaskies]

[QUOTE=Katlewmos;376626]Then, about a week later, I received a letter from them stating I would have a new servicer as they had sold my loan. I felt betrayed a little because it was like, once they got wind that I was trying to lower my payments, they hurried up and got rid of me as a customer. QUOTE]
Same scenario! Dealth with a servicer Wilshire(nightmare for 2 yrs). Went to NACA event settled for a 1900.00 payment instead of 3500. The week we were about to send in the payment we received a letter stating that our mortgage was SOLD to Bank of America. They informed us not to send in the payment because the loan had to be reworked. Now they reworked it but wants us to pay 3600.00. As of today they would like to discuss a Government sponsored Short Sale program (as if)