(Edit update: Dec. 26, 2010 The NACA event below happened in early Oct. of 2010. Since that time, there have been repeat NACA events in Los Angeles and other parts of the country.)
(Edit update: January 21, 2011, apparently there is another home foreclosure prevention event at the Sports arena - if you go and want to report your experience in the comments section, it would probably be appreciated by other readers as well as myself.)
(Edit update: January 22, 2011, When you google for these events, I think you need to use the phrase "Save the Dream", in quotes, then add the city you think the event is in. You can click here for this current event.
The NACA Los Angeles Convention Center "Save the Dream" Home Foreclosure prevention, Home Loan Modification event apparently drew 30,000 people and was extended from a five day, 24 hour a day event, to an additional sixth day because of overflow demand.
However, is this high level of demand a good thing, or a bad thing?
A NACA attendee could have spent as much as 12 hours going through the seminar and Home Loan Modification interview process. One person interviewed by channel 2 News says they would rather try and deal with all of it in one day then have the process stretched out over a year or two.
However, not all will be helped. Actually, no one knows what percentage of homeowners got actual help, and there in lies the problem. Are 10%, 20%, 50% of the NACA event being helped? We may never know, and there in lies the problem. I spoke with someone (not from the event), who said their relatives went to a prior event, were told they could be helped, but then ended up waiting for homes for relief that never came.
It would be really helpful if a college filmmaker or two DOCUMENTED one of these NACA events and polled the people LEAVING to see how many were actually being helped. Are the tens of thousands of film school students so self absorbed they don't see the biggest story of the decade right there in front of their faces?
Imagine the irony of a college film student whose very own parents are struggling to put them through college discovering their own parents in line at the NACA event. Parents who were too embarrassed to tell them how tough they are having it making ends meet and paying for their own college tuition.
The local news reported that a "mortgage investor" was actually present at the NACA event. This was briefly explained by the local news as being the actual entity that agrees to "fund" the home loan modification. Why would any "mortgage investor" be interested in lowering their profit margin when they can just foreclose on the home? The lost down payment, plus all the fees that will be taken from the resale of the home, plus the reselling of the home might prove more profitable than actually helping the homeowne in the home, no?
An additional question that needs to be asked about the NACA "Save the Dream" event is just what are the banks. and the mortgage investor looking for above and beyond monthly income verification and proof of insurance?
What if these homeowners also have tens of thousands of dollars in credit card debt at high interest rates? Would it not make sense to also offer CREDIT CARD PAYDOWN DEBT INCENTIVES to homeowners who are trying to get a lower monthly home loan mortgage payment?
When homeowners attempt a home loan modification might the banks be thinking, "Why should I reduce this homeowner's mortgage payment even one cent if they are hopelessly in credit card debt that is growing by the month"?
Perhaps the home loan modification program has not been fully thought out and as a result HUNDREDS OF THOUSANDS OF HOMEOWNERS, perhaps more, are not getting the actual benefit that the HAMP program was supposed to bring.
Until homeowners are offered real incentives to PAY DOWN their credit card debt via LOW LOW interest rate charges on EXISTING credit card debt, The HAMP Program may be a SHELL of what it could AND SHOULD be.
2 comments:
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?
Hi Pattie,
I went ahead and created an article featuring your comment from above along with a response from me. Reader Pattie Pinpoints the EXACT ISSUE regarding the REAL HOUSING CRISIS in a Swarm The Banks commentary.
I did correct what was probably a grammatical syntex error on your part that once submitted could not be corrected by you.
Really well written comment on your part, thanks.
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