NACA’s “Save the Dream Tour” Now Disappointing Thousands in Phoenix?
It started this past July 31st and went through August 3rd, and 40,000 very nervous homeowners waited in long lines in the hopes of saving their dreams.
One woman, a 46 year-old single mom who had lost her job, fallen behind on her bills, but was working again, waited apprehensively to find out if her lender, Wells Fargo, would modify her loan or throw her out in the street. (I know that’s a harsh way of putting it, but I’ve decided that there’s been enough soft pedaling on this point.)
The event was yet another brought to homeowners by the Neighborhood Assistance Corporation of America, or NACA for short. The event’s brochure promised “Same Day Solutions” for homeowners who would get their loan modifications approved on the spot by many of the largest lenders and servicers in the country.
Bank representatives, dressed in their golf shirts with embroidered bank logos, would be on hand and would get things done for homeowners on a while you wait basis. NACA, a nonprofit based in Boston would be there with hundreds of housing counselors.
Wow. When I first heard about this whole “Save the Dream” thing, I thought it sounded absolutely fabulous.
When our single mom left the event that day she felt terrific. She was confident that her home would now be saved. A NACA housing counselor had reviewed her financial documents, and then she had met with a representative from Wells Fargo, who had agreed to modify her loan, taking her interest rate down from 6.375 to 4.375, and cutting her payment by more than $200 a month. Wells also agreed to a forbearance agreement that would allow her to skip the next six payments, and tack the amount onto the back end of the loan.
She was so happy.
The Wells Fargo representative couldn’t give her a written agreement, but it was a direct contact with her lender, and she watched as the representative wrote her name down along with her phone number and the promised interest rate… right on her NACA workbook.
She was so happy.
Fast forward to September 22nd, eight weeks later when she received a letter from Wells Fargo that specified very different terms than she was promised. In the letter it said that at the end of a six-month moratorium on payments, she would have to pay a balloon payment of all six payments missed.
So, as you might expect, our single mom tried to call her Wells Fargo representative at the number she had been given while she was saving her dream two months earlier… but she was never put through to her. Instead, Wells Fargo now told her to stand by… because Wells would be contacting her in a few months, at which time she could apply for a loan modification! And even better, Wells now said that it had no record of the agreed to interest rate reduction.
So, next she called NACA, left voice mails and sent emails but never got a response. And wouldn’t you know it… the identification number that she was given to track her file online on the NACA website didn’t work. Darn the luck.
So, now our single mom is concerned. She’s facing a balloon payment in January and is once again scared that she will lose her home… the home she purchased in 2002 with a 20% down payment…. the home in which she has close to 50% equity, but can’t refinance because of her credit score.
Now she’s angry. Very angry, I would think.
Here’s what she told the St. Louis Beacon:
“I’m angry at both the bank and the organization — Wells Fargo and NACA. Is the idea of ‘scam’ in my mind? Yes. And that’s a quick turnaround for me. But, it was a very difficult 40-minute call I had with the bank — to see what I thought was a gift, of sorts, a break, just kind of disintegrate.”
NACA’s CEO is Bruce Marks, and he’s known for his outrageous acts in defiance of banks. I read about the guy and frankly, had to like him. For a while, he was delivering old, crummy furniture to the front lawns of bank executives on weekends. Pretty cool, right? Now I’m not so sure.
When Bruce was asked for numbers on how many St. Louis homeowners have received loan modifications and how many are in some sort of pending status, all he would say is that “it’s a rolling number”. It’s apparently a number that rolls. Bruce went on to say that that the focus would be on completing pending cases before the tour would resume in Los Angeles in late September. The “vast majority” will be completed by the end of this week, he told the St. Louis Beacon.
Were they? I don’t know. I can’t find any published numbers anywhere. I sure hope “the vast majority” of the 40,000 people that attended the NACA “Save the Dream” event… had their dream saved.
But I’m skeptical. Because when you consider that, according to the administration’s report cards that were published on August 9th, Bank of America only modified 4% of its eligible loans. Bank of America is the country’s largest mortgage holder, so it seems hard to imagine that the “vast majority” of 40,000 homeowners could save a dream out of that 4%. Maybe I’m not getting the math right.
At least NACA provides their housing counselor services FREE! That’s right, they don’t charge any of those distasteful up front fees everyone is so concerned about. Nope, NACA gets their money the old fashioned way… from the taxpayers… well, from the government who gets their money from the taxpayers. In fact, NACA recently got $16 million in government funding to provide housing counselors to distressed homeowners. But that’s not considered an up front fee, I suppose. So, you see… that’s free right there.
Oh, and one more thing… just for fun I looked up NACA on the Better Business Bureau Website and guess what? You guessed it… an ‘F’. Uh oh. So, maybe they are doing some loan modifications after all. Go figure.
NACA’s Save the Dream? Or just another government funded nightmare?
NACA is a federally funded enterprise which encourages its benefactors to engage in criminal activity directly on the website through the "participation pledge." It states: "Participation is the key to NACA’s incredible success. The active participation of thousands of NACA Members and homeowners has been the foundation of NACA’s success. People have participated in a variety of ways, from helping with administrative tasks to testifying at a NACA Workshop, from attending a NACA press conference to being arrested during a NACA civil disobedience action. "
It is ridiculous that $1.00 of our money through Federal Tax $ is going to fund this organization. They require everyone who benefits from their program to sign the pledge including the words above and I am wondering what happens if they don't honor that pledge.
The absolute worst type of "scam" is one that is sanctioned and supported by the government.
Whether or not Martin's wholesale cut-and-paste job of an angry NACA customer anecdote from this St. Louis Beacon article http://www.stlbeacon.org/facing_the_mortgage_crisis/local_naca_clients_still_waiting_for_help is bona fide plagiarism is not for me to say, but I do find it strange that he accuses NACA of being a scam based on the ONE SINGLE published article floating around on the Web that contains an anecdote about a disappointed NACA customer. Even the original article is disingenuous. Its big, bold headline reads: "Eight weeks later, homeowners still wait for NACA to make good on its promises." However, it only mentions a single homeowner. (PLEASE NOTE: The italicized paragraphs below are the work of STLB reporter Mary Delach Leonard. This is how we avoid the appearance of plagiarism, by giving others credit for their work.):
Sherre Waggoner of Maplewood no longer knows what to think about her experience eight weeks ago at a highly touted event for financially troubled homeowners called the "Save the Dream Tour," held by NACA, the Neighborhood Assistance Corporation of America.
But as the days have passed, she has become increasingly worried.
Waggoner, 46, is a divorced, single mother and college student who lost her job in April. She said she had fallen behind on her bills and was having trouble staying current on her mortgage, though she had just found new employment. After a friend saw the NACA event mentioned on a local television newscast, Waggoner decided to give it a try.
Waggoner was one of the 40,000 people who NACA organizers say attended the four-day event in St. Louis, July 31-Aug. 3, at the Chaifetz Arena. NACA, a national nonprofit advocacy group based in Boston, rented the arena and brought in several hundred housing counselors. The organization's promotional material promised "same-day solutions" for homeowners by restructuring mortgages that would be approved onsite by representatives of some of the nation's largest lenders.
Waggoner said she spent five hours at the arena on Aug. 1 with thousands of other worried homeowners, but she left feeling both relieved and confident that her home would now be safe.
She met face-to-face with a NACA housing counselor who reviewed the financial documents she brought. She then met with a representative from her lender, Wells Fargo, who agreed to a restructuring of her loan. She said the terms were all spelled out: Her mortgage interest rate would be reduced to 4.375 percent from 6.375 percent -- which would take about $220 off her $891 monthly payment.
In addition, Waggoner said, the Wells Fargo representative agreed to a six-month forbearance during which she would not have to make her monthly payments. Those payments would then be tacked onto the principal of the loan.
"I was initially pleased, very happy," Waggoner said.
Though she was not given a written, signed agreement, Waggoner (right) said she thought she had something nearly as good: a direct contact with her lender. The Wells Fargo representative even wrote her name and phone number -- and the promised new interest rate -- on the cover of the workbook Waggoner had been given by NACA.
"That gave me a lot of confidence -- maybe more than I should have had," Waggoner says now. "And when the monthly mortgage bill didn't come the next month, that also gave me confidence."
Since then, Waggoner said, she has received a letter from Wells Fargo that specifies different terms than what she agreed to on Aug. 1. The letter refers to a six-month moratorium on payments that will end in January, when a balloon payment of all missed payments will be due.
Waggoner said she tried to phone the Wells Fargo representative at the number scrawled on her workbook, but she has never been put through to her. Instead, she has been told by Wells Fargo that she will be contacted in a few months -- at which time she can apply for a loan modification. She said the bank now says it has no record of the agreed-upon interest rate reduction.
Waggoner said she has also tried contacting NACA, but the identification number that she was given to track her file on the organization's website does not work. She said she has left voice mails and sent emails to NACA, but she has not received a response from the organization. While she is thankful that she doesn't have to make payments for six months, she said she is very worried about the possibility of having to make a large balloon payment in January.
And, she is concerned once more about the possibility of losing the house she purchased in 2002 with a $20,000 down-payment. Waggoner said she has considerable equity in the home -- she owes less than half of its current assessed value -- but she said lenders aren't willing to discuss refinancing with her because of her poor credit score.
"I'm very angry and very scared," Waggoner said Monday. "I'm angry at both the bank and the organization -- Wells Fargo and NACA. Is the idea of 'scam' in my mind? Yes. And that's a quick turnaround for me. But it was a very difficult 40-minute call I had with the bank -- to see what I thought was a gift, of sorts, a break, just kind of disintegrate."
It's a compelling story, but does it prove NACA is a scam? NACA has visited a half-dozen major cities in the past few months, with 30,000 to 50,000 people showing up at each one. Is it possible Ms. Waggoner's loan servicer simply lost her paperwork? Why aren't there dozens, even hundreds, thousands of these "disappointed NACA homeowner" stories floating around? Why did Martin need to crib his only anecdote from the STL Beacon if NACA is such a big scam?
AZRepwriter:
Is posting pro-NACA PR part of your NACA membership responsibilities? I was at the NACA event in Cleveland in June 2009 and my story is virtually identical to the woman from St. Louis.
I spent four hours filling out their online form before I went to the event. Once I got to the event I waited five hours to see an "intake counselor" who reviewed my file and scanned it in to the NACA database. By the time that was all done, the bank representatives were no longer taking face to face meetings for the rest of the night.
I came back the next day and waited for four hours to see a bank counselor. When I finally got my turn, the bank counselor said the NACA computers went down and he could not retrieve my file. It didn't matter that I had paper copies of everything with me because he said "everything needs to be done online." Not to worry though -- he said someone would get back to me within a week or two and we would take care of it then.
After waiting two weeks (which is what the NACA red shirts say you have to do) I placed phone calls and sent e-mails every day for a week. After that, I tried every other day for about two weeks. No response from NACA -- not even an auto-generated "we got your stuff and we're working on it" e-mail.
It's been over four months now with no help from NACA or the bank.
BTW, I have a foreclosure hearing tomorrow. Thanks for all your help Bruce!
Hello,
I was in preparations of writing an article from the other side of NACA with regards to the No down payment loans they advertise. I was planning on writing my local media outlets detailing how unprofessional they are and basically provide proof of how they create rules to benefit them even though they their non-profit status requires them to follow strict guidelines that cannot be modified.
Then I came across your article….have there been any follow up since this incident?
If you do a search on Yahoo business you'll see many other stories indicating their poor service.
I have actual testomny from clients who was unable to obtain a house after a year and just gave up because someone else approved them.
So
So my question is how does a non-profit organization who gets funding by having a (let me get the exact wording from www.naca.com) "goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership" unable to approve many people for homes who have to eventually go and get approved by organizations who NACA claims are unable to approve them in the first place???
I have a 750 middle credit score and after a year was continuously denied a loan.
Im taking this information and will see if I can get someone in the local media outlets and radio to speak on.
I think NACA's purpose is admirable but I believe they have lost sight of their goal and the current management is unable to hold true to their promise.
So my question is how does a non-profit organization who gets funding by having a (let me get the exact wording from www.naca.com) "goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership" unable to approve many people for homes who have to eventually go and get approved by organizations who NACA claims are unable to approve them in the first place???
I have a 750 middle credit score and after a year was continuously denied a loan.
Im taking this information and will see if I can get someone in the local media outlets and radio to speak on.
I think NACA's purpose is admirable but I believe they have lost sight of their goal and the current management is unable to hold true to their promise.
Although my experience has been a little different, the result is the same, promises, lies, and no help. I was at the Phoenix "Save" event. When they told us it would be midnight before we saw a councilor and no bank officers I decided to take their advice and use the on-line, telephone contact method. Big Big mistake. I have had 3 phone councilor appointments either cancelled or they just didn't materialize. When I finally get ahold of someone (usually after a hold of 4 to 6 hours), I'm told that my file "isn't complete". When pressed for details they say there is nothing in it. But the web site lists several things there. So again doing what they say, I fax the info 3 times (and get confirmation that they received it), email it 3 times, and electronically upload it 3 times. Yes, a total of 9 times, they still say it isn't there. Then I'm told it is my fault that the information isn't in my file. Well, if it is my fault, then I get to correct it. I'll go to Charlotte and fire the whole bunch. I know there are at least some competant people out there who could replace them.
All I ask for is some competancy on what they say they will provide, but none seems to be forthcoming.
hi,
I attended the NACA event in LA on Oct. 1st, 2010. We waited all night to get a face to face with Freddie Mac. We finally got it after waiting 12 hours. Freddie MAc approved a 3.5% over 40 years- which was to replace the last offer of 4.5%. Now our lender is saying they spoke to Freddie Mac and they did not approve the lower rate and because we were waiting for the paper work on the 3.5%- we lost the 4.5% offer and Freddie Mac refuses to accept any other applications for modification. I have been calling and emailing the freddie mac contacts we were given with nothing but a answering machine/no response what so ever. I think NACA is a scam- I don't know what else to think. Empty promises from people who aren't authorized to make them.
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 R
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?
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 R
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?
I am up at 5 am in the morning because I cannot sleep since receiving the notice from NACA for the second time that our modification was declined. My husband was laid off for 2 1/2 yrs due to the economic downturn after 20 years of steady work, I had a stroke just after he was laid off and is how we got behind in our mortgage. I attended a save the dream workshop which turned out to be a big sham giving false hope to thousands of people. They would sit you down prepare a modification sounding as if it will go through but you have to wait for lender or investor approval which as I was told would take no more then 7 days. Well it took 3 mos of submitting the same documents over and over till today when I got an email from NACA telling us that we were declined when for months I had called NACA over and over leaving numerous messages to please call me back as I had many questions with never one return call!
My husband has been working steady for the past three months but we cannot catch up on past due amount but could start paying the regular mortgage payment and don't know what to do. We put 150K down on our dream home otherwise we wouldn't feel so bad about just letting it go. Our life savings went into this purchase and do love our home. Help![/b]
Yes I too sought the "Save the dream program". First I faxed everything except my first born. Then when Naca was in town I sat with countless others in Los Angeles from morning to night. They always say - a little while longer you will meet someone from your bank. By nighttime they suggested thousands of us return the next day. I would have had to rent a hotel and returned home. Now I have been faxing everything for over 6 months. First major clue (something is wrong) They asked that I highlight then circle deposits. We are just PLAYING.
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Having spent more than thirty years in the media, I am still amazed and extremely disappointed at those who think engaging in negative sensationalism will somehow boost their career, popularity or ratings, and non-profits seem to be popular targets. The picture is quite different when you objectively look at the facts regarding NACA.
Let me specifically address some of the recent comments:
Nobody is ever guaranteed a modification. We openly state that just over half the people who come to our Save The Dream events get a modification during the event, and our overall success rate is 80%, usually within 30 to 60 days from the submission of a modification proposal. We have never claimed to be able to help absolutely everyone, but nobody wants to believe they could ever be that one out of five who cannot be helped.
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.
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 truly 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, borrowing from family members, etc. to make the payment. Eventually it will only make the problem worse.
Many lenders do have a “gray area” called Imminent Default. Basically, you must prove that you are about to go past due on the mortgage and cannot do anything about it. Plus, the cause of the impending delinquency must be one of what are called the “three D’s”: Death, Divorce or Disability.
NACA will work with you even if you are current on the mortgage as long as we can document that it is unaffordable. But at no point do we deliberately withhold the fact that it will be much harder to succeed if you are not past due.
It is not uncommon to have to submit a proposal multiple times before getting a solution. As long as the homeowner is willing to keep up the fight, so are we. We will resubmit the proposal, have the proposal escalated to the investor on the mortgage when possible and find out why a proposal is declined to see what might be legitimately changed to make the proposal acceptable. If you have been turned down twice, we try a third time and so on. In many cases, sheer patience and persistence make all the difference. I personally worked with a young Seattle couple recently who finally got a modification after their FIFTH attempt.
Our National Counseling Center takes several thousand calls from struggling homeowners each day six days a week, which can make it difficult to reach us by phone without a scheduled phone appointment. This is why we have the ability to send e-mail to our Member Services department on nearly every page of the NACA website, our own online forum, and even Facebook and Twitter pages. Each is monitored by NACA staff on a daily basis to provide every opportunity possible for our members to contact us.
And when 30,000 people attend a Save The Dream event seeking help, of course there will be delays, even when NACA has 400 staff members and volunteers dedicated to the event. When we have to ask homeowners to return the next day because of the huge turnout at an event and someone complains, I can’t help but wonder, how much time and effort is too much to save your home?
While we are thrilled, grateful and even proud of every same-day solution that comes out of our Save The Dream events, the path to a mortgage modification can just as easily be tedious and frustrating. If the process were simple and easy, NACA wouldn’t have to exist.