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NACA - Neighborhood Assistance Corporation of America (Part Two -- What I have learned from MY EXPERIENCE!)

By
Real Estate Agent with The Elizabeth Nieves Realty Group 209227

Yesterday...I posted an article about NACA...The Neighborhood Assistance Corporation of America...a non-profit community advocacy and homeownership organization. That post was an introduction and overview of the program. Today...I will attempt to answer your many and varied questions...based on my personal experience with NACA. 

For the record...I DO have EXTENSIVE EXPERIENCE working with NACA. I closed my first transaction with NACA in June 2006. From that point, I personally closed 3-5 NACA transactions per month. My buyers' agents closed 1-2 per month, as well. Considering that the Raleigh, NC NACA office only averaged about 20 closings per month in 2006, our closings represent a fairly large percentage of the total. I currently have about 100 clients who are enrolled in the NACA program.

Now that I have established myself as a credible witness...I will share some of the things (wisdom...knowledge...'INSIDER SECRETS') I've learned from my vast encounters with NACA. (PLEASE FASTEN YOUR SEATBELTS...WE MAY EXPERIENCE SOME MILD TURBULENCE DURING OUR FLIGHT ;-)

To say that a NACA transaction is VASTLY DIFFERENT from traditional loan programs is an understatement, at best. The very first requirement, in the NACA process, is that the buyer must attend a 4 hour seminar. (The agent is also required to attend the seminar prior to being approved by NACA...to work with THEIR OWN BUYER!)

Assuming that everyone takes the first step...the next step is to schedule an appointment to meet with a NACA counselor. IF the client has ALL of their documentation in order (something I coach them to do EVEN BEFORE they attend the seminar)...it is possible to receive an appointment within a few weeks of the seminar. I also encourage my clients to call every few days and ask for cancelled appointments. In many cases, the very act of calling shows their level of interest and commitment...getting them in the door faster.

At their initial appointment, they could POSSIBLY receive an instant approval IF THEY PROVIDE ALL OF THE DOCUMENTATION NACA REQUIRES ...and...THEY QUALIFY BASED ON THAT DOCUMENTATION. I've had READY, WILLING and ABLE BUYERS approved within 3 weeks of attending the seminar. (Again...I coach my clients from the first day about the NACA process and give them the information they need to walk into their first appointment fully prepared.) IF they arrive unprepared...they WILL receive a list of required documentation and a polite invitation to call NACA again when they are prepared.

In either case...once NACA does approve a client...NACA will issue a loan commitment letter. This letter is not a pre-qualification...not a pre-approval...it is a commitment to lend...assuming that they have no changes to their qualifying circumstances AND the home passes the rigorous NACA standards. Based on the numerous transactions I've had with NACA...their loan commitment is STRONG! I've personally not had a single NACA transaction fall through.

Although NACA's approval process is NOT CREDIT DRIVEN...NACA does check credit and will not approve someone with BAD CREDIT. Instead...NACA will work with the client to repair their credit issues. Because NACA is a non-profit organization whose purpose is to promote homeownership...their primary objective is to ensure that the client can afford the home BEFORE they fund the loan. Therefore...NACA will not grant an approval until such a time as they can see 1) a 3 month savings pattern AND 2) a serious attempt to correct any bad habits that contributed to their bad credit.

To specifically address some of your comments.....

  • Brandon said that "NACA doesn't usually work out too well for the seller." IF you think about the fact that NACA makes homeownership possible for MANY people who would otherwise NOT BE ABLE TO BUY...then it seems to me that NACA is good for sellers. More buyers equals more homes sold. Especially in the current market...NACA is a sellers' best friend. Furthermore...what is more frustrating to a seller than pulling his home off the market and having the deal fall through at the last minute. With NACA...there are some added headaches...but you can be confident that you will end up at the closing table.
  • Grant wrote, "Most (buyers) fall out or don't complete the program." Unfortunately, Grant made a valid point. The process is lengthy and requires a tremendous amount of commitment. However...look at the reward (NO DP...NO CC...and a LOW, LOW, FIXED RATE!) With this program...it is particularly important for you to be in constant contact with your client. Keep them motivated and encouraged. THEY WILL THANK YOU IN THE END.  
  • Kris wrote, "IF they (my client) can be persistent...so can I!" EXACTLY!!!! And again...REMEMBER...with ALL of the issues in the lending world...these clients MAY NOT have any other option!

A FEW MORE POINTS TO CONSIDER (THE GOODIES!):

  • In my opinion...NACA is SUPERIOR to any loan option for purchasing new construction. With NACA's stringent inspection/repair process...it does not work as well for homes that need extensive repairs. However, most of the transactions I have closed have been existing construction. Of those, only ONE was a foreclosure, but it was in fairly good condition.
  • It is a good idea to educate the listing agent when you present a NACA offer. I have a letter that I present with EVERY NACA offer. It explains the benefits AND challenges of a NACA transaction. I find that my honest and upfront approach answers their questions and overcomes their objections.
  • I said it before, and I'll say it again. NACA is NOT for EVERY BUYER! If your client has a time restraint...and other loan options...you should probably encourage them to investigate ALL of their options.
  • I've referred to NACA's 'stringent inspection/repair process' several times. Your client MUST have an inspection performed by a NACA approved inspector, and the inspector submits the inspection report directly to NACA. NACA has a separate department (HAND) whose sole purpose is to evaluate the inspection report and generate a repair request. ALL repairs must be completed by a licensed contractor. NACA will not move forward with the loan until the seller agrees, in writing, to make the necessary repairs. Upon completion, the inspector will perform a second inspection to ensure that the repairs were done properly. I could write pages JUST about the inspection/repair process, but for your sake...I WON'T!
  • NACA is not a lender, and the people who work for NACA are not loan officers...they are housing counselors. They are also typically overworked and overwhelmed. I have learned, the hard way, that faxes get lost...emails are not always returned in a timely manner...and sometimes, the counselors don't get around to calling the clients back for days. I DON'T LIKE IT, BUT I DEAL WITH IT. I am pro-active with the housing counselors. I follow up much more than I would with loan officers. I offer my services as the liason between the housing counselors and my clients. I take the iniative to get things done...before the NACA counselor even asks for it. I KNOW that many of my closings would have been delayed had I not taken this approach. IS IT MY JOB? YES and NO! It IS my job to ensure that my clients close on time...if it is within my control. By staying a step or two ahead of the process...I give my clients the VERY BEST I CAN GIVE. I think they deserve it, and they always appreciate the extra effort.
  • LAST BUT NOT LEAST...when you refer a client to NACA...be absolutely certain that you document them in the NACA system. YOU need to register them for the seminar and enroll them on the NACA website. IF YOU DO NOT...AND IF THE CLIENT CONTACTS NACA ON THEIR OWN...you will have to pay a 33% referral fee to NACA at closing. THAT WOULD MAKE ME CRY!!!

I feel as though there is so much that I've NOT covered. I also feel that what I have covered is a bit overwhelming. Please do not be concerned! Once you learn the system...and YOU are already ahead of the agents who haven't read this post..NACA is no more difficult than any other non-traditional loan program. You just have to invest the time to understand the rules of the game!

For more information...visit naca.com

Written and Posted by:

Elizabeth Nieves -- Broker, REALTOR® -- The Elizabeth Nieves Realty Group @ Keller Williams -- www.ElizabethNieves.com

 

 

Comments (28)

Peter Andres - Lic. in FL & NY GRI,SRES,CNE
REALTOR - The Villages, FL
I just read your blog and want to thank you for sharing the info about NACA.  I'm going to contact them this coming week. I went on their website and saw the nearest office was 400 miles away. I'll have to check if they have local counselors. In a buyers market, this is a teriffic program to push first-time buyers, especially with the huge inventory and motivated sellers.
Nov 03, 2007 01:25 PM
Elizabeth Nieves
The Elizabeth Nieves Realty Group - Durham, NC
Bilingual Raleigh - Durham North Carolina Real Estate Team
Peter:  You are so welcome. I am glad that you gained something from it. As you discovered, one of the problems is that their offices are not everywhere. As the market uses the program more, they will go where the need is. Blessings!
Nov 03, 2007 11:58 PM
Anonymous
Sartu

 

By a NACA referral ,I attended the NACA Seminar June 2007 , had an appointment with all my documentation in 11/2007 .  The broker never responded then was no longer there.   Again, I resubmitted updated documentation in January 2008 and keep sending information made several inquiries as to my status and keep getting the run around.    I feel there is some kind of discrimination, I don't know if I am the wrong sex, color, or political party (they require a copy of your voters card) and all I am trying to do is get out of a predatory loan and refinance.   The original broker whom I spent 3 hours with said everythink was Honky dorey and we can close in 30 days or less and that was to be back in December 2007.  Here we are approaching May 2008 (remember this started in June 2007) and I have heard nothing!   Even when trying to communicate through the NACA website.   I am so confused and was an advocate telling everyone about NACA even though I havent closed on their product or  know if I ever will.   It seems to be a good product if you qualify for their hidden criteria.

Apr 30, 2008 02:18 AM
#12
Anonymous
Sartu

Thank you so much for the information, I will give it a shot.  

May 09, 2008 03:49 AM
#14
Anonymous
Sartu

Well here it is over a month and half later, emails phone calls and attempts to make appointments with the counselor who told me there was no reason to it was in the underwriters hands,  NOONE , not one person will give me an answer , as I continue to keep documents faxed and updated , even a HUD Complaint... I guess I am the wrong color, sex, or political party (my friend who recommended me was approved and the opposite of all of my attributes) because not for the life of me can I understand why noone will work with me.. 315439   Thanks for you help anyway..  what a waste.

Jun 19, 2008 12:51 PM
#15
Anonymous
Sartu

For the record, my membership id for NACA was 315439

Jun 19, 2008 01:10 PM
#16
Pedro Gonzalez
ADT-Millennium Alarms Systems - Pico Rivera, CA
Home Security Systems- ADT authorized dealer.

Great blog however I have heard clients that have been 2-3 months with NACA and havent got an approval yet

Jun 26, 2008 08:00 AM
Anonymous
really want to see NACA infrastucture improve!

 FYI... I noticed some questions regarding the assumed low pay for the overworked and overwhelmed NACA employees.

It does seem that they are definitely overworked as they are required to work more than 50 hours per week and have scheduled appointments that fill each entire day which leaves no time to process loan applications, do any kind of follow up or return calls/emails.  Their compensation though does seem in line with the amount of work required.  If they work 50 hours or more per week and see clients all day - they should make between $45 - 65, 000 per year which is decent money but at what price...

Follow the attached link to read NACA's compensation plan which is clearly posted on their website. 

https://www.naca.com/job/nrcp.pdf

**p.s.  Have you thought about sending your 2 part blog pages regarding NACA to their headquarters so they can read all of the comments posted.  It may be that they really need to SEE what people think the problem is so that they can work to fix it!

THANKS Elizabeth and Eliud!  Keep up the good work!!

Jun 28, 2008 04:42 PM
#20
Solomon Greene
Drake Realty, Inc. - Lawrenceville, GA
Real Estate Agent, Mobile Notary Public

After hearing of the experiences encountered by three of my own clients with the local affiliate of NACA, the decision was made to place greater emphasis on other home ownership options available here in Metro Atlanta.  For the record, a relationship had been developed with some of the local loan officers at NACA.

Jun 29, 2008 10:06 AM
Anonymous
Proactive NACA Member

Solomon,

 

I have posted my "updates" on another blog on activerain. I, too, am dealing with the Atlanta NACA offices. It has been a complete nightmare.

Eliud, send me an email to casslilly@yahoo.com. I will gladly send you my information and member number.

 

 

Jul 13, 2008 03:24 AM
#23
Justin Ukaoma
Vizion KC - Kansas City, MO
Kansas City Real Estate Investments

Great Post thanks for all the info

Aug 04, 2008 04:31 AM
Anonymous
DON MEADOWS IS INCOMPETENT

HORRIBLE< HORRIBLE<HORRIBLE ORGANIZATION

 

LOSING YOUR HOME WOULD BE A BETTER MOVE!!!!!!!!

Aug 14, 2008 03:09 AM
#26
Anonymous
A NACA FAN MUST BE DOING THIS BLOG

MANY OF THE NEGATIVE COMMENTS THAT KEEP THIS POST REALISTIC ARE BEING DELETED.  SO, IS THIS SITE FAIR. BE WARY OF WEBSITES THAT EXTRACT COMMENTS FOR SELFISH GAIN.  THIS COULD BE A NACA PERSON.

I FOUND THE WEBSITE BELOW AND THIS IS A GREAT EXAMPLE OF HAND

http://oldoldhouse.blogspot.com/2008/03/questions-about-naca-round-2.html

 

 

Aug 14, 2008 03:14 AM
#27
Marvette Critney
Opulence Manor - Decatur, GA
Opulence Manor, Blogger, Life & Biz Strategist

I agree... NACA the program is wonderful for your client.... I refer the vast majority of my clients to NACA..... however NACA threaten to sue me over my website www.joinnaca.com   of which I completely took all their information off my website.  I now have a link the NACA.net  the National Association of Comsumer Advocates... NACA feels like I should not use my joinnaca.com domain name even though the link goes to a completely different organization.  NACA doesn not like outside agents.  Maybe it is differnt in your area....but they HATE agents in atlanta....and constantly work against us at ever term.  I recently had their in house broker Natasha Hatcher call and tell us that "she was banning" a subdivision and myself from NACA.  "Sounds like redlining.... she further stated that she would contact all my clients and inform them that in order to use NACA they would not be able to use me as their realtor....   I will be seeing her before the Georgia Real Estate Commission.

 

Marvette Critney
Realtor

Sep 08, 2008 02:07 PM
Anonymous
naca

The "Idea" of NACA is a great one, but it's people DEFINITELY fall short.  As for NACA hating outside agents, it it COMPLETELY true.  I had so much hope in NACA.  Finally, a housing organization with their heart in the right place.  I have worked very hard, attended NACA classes and seminars, read everything, currently have 27 people registered and keep in close contact with most all of them only to have cheap, opportunistic, greedy NACA agents try to steal my clients!  It is ridiculous!  NACA nationwide may be a wonderful organization but the people who represent it in Atlanta are lazy, rude, greedy, immoral and just plain out liars.

I really admired Bruce Marks and everything he has accomplished through NACA.  I hope that if he genuinely believes in what his proposed "NACA" is supposed to be.  Otherwise, the folks representing him in Atlanta make him look like a CROOK!

I hope you have a better team in your parts.

MAKE SURE YOU HAVE A BUYER BROKERAGE IN PLACE!  THEY WILL STEAL YOUR CLIENTS!

Nov 18, 2008 08:03 AM
#31
Zeneida A Moreno
Waterfront Condos and Townhomes Inc - Boynton Beach, FL

Will this organization help people that have already being served with foreclosure?

Feb 06, 2009 02:50 AM
Anonymous
Yamil Hernandez

I have been dealing with Naca for some time now. I sent 7 clients to them in the summer (2009) and after 4 months one was ready and "approved". We have had an executed contract for 60 days now and all the counselor is trying to do is to kill the deal and turn it over to one the agents they use that pays them a 30% referal fee. They are a bunch of crooks and unprofessional. I would never use them again.

Nov 21, 2009 03:37 AM
#33
Anonymous
Bekele Gedion

NACA Nonprofit Program,

About three month ago a friend told me to contact NACA in order to get help on our fight to modify our B of A predatory and unaffordable mortgage.   My experience working with the NACA team has been disappointing and concerning.

This morning I spent 1 hour speaking with Kelly Greene on why our file was denied by B of A for the reasons of "financial".   The conversation was focused on my house whole spending and how much I spend on my Kids, Church and Dog instead of the B of A loan mortgage and the fact the loan was predatory and unaffordable.  

In the past three month not one NACA representative including Kelly Greene reviewed and discussed with us  the Loan Interest, Principle, Property Tax, and Home Insurance amount and compared it to our current income after taxes and identified if our mortgage is predatory and unaffordable.    

The sad part of it all is the help we and suffering Americans are seeking for can easily be identified if simple consideration is afforded to hard working taxpaying citizens like my wife and me.  Banks predatory and unaffordable mortgages can be identified by reviewing the total monthly payment amount of (Principle, Interest, Property Tax, and Home Insurance) meets the percentage criteria set to the total income after taxes.  (initial be debt to Income ratio)

Form the discussion with Kelly Greene, I feel that she and most of NACA team is focused on personal spending vs. holding the Banks accountable to do right by all suffering Americans like my family.  I was more discouraged and convinced that NACA cannot correctly represent Americans like me against Banks.   We are victims of the Banks predatory practices during the 2005-2006-2007- 2008 times.  Now our government is spending our hard earned tax money to support a Nonprofit organization like NACA  only to waste our money and destroy the hopes of hard working Americans like myself. 

Thank you NACA

Apr 01, 2010 05:24 AM
#34
Anonymous
Laurie

 I am so glad to have found this article.  We are in the process of selling our home and the client is going through NACA.  Something I am confused by is that it states the buyer pays no closing costs, but in our contract it is asking the seller to pay 6% towards the closing costs.  Could you help me understand why we would be helping towards closing costs if everything I have read on the NACA website states there are no closing costs to the buyer?

Apr 22, 2010 10:00 PM
#35
Anonymous
marvette critney

Laurie, Buyers in the NACA program do not pay traditional closing cost in terms of what most of us think are closing closts.  Buyers still have costs at closing, Homeowner insurance, taxes, any prepaids (escrows).   Typically, the money the seller contributes is used to buy down the interest rate for the NACA buyer.  In GA, closing costs as indicated on the sales contract can also inlcude points.   The 6% that you are contributing is going to enable the buyer to have a much lower interest rate.  The end result will be that the buyer has a much lower monthly payment, making the house affordable. 

 

Apr 23, 2010 01:01 AM
#36