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When your house becomes a prison! "The Lovelys" need help!!!

OK today I'm writing to pick your brains a little. I hope it doesn't hurt!!! I wrote a post last year about "The Lovelys" titled "When your house becomes a prison". If you haven't read it please take a minute to do so.

I'm still working with these folks. Since I wrote that post "The Lovelys" have gone through a bankruptcy and Mr. Lovely has had to quit his job as a security guard, for health reasons, plus the fact that he's now 81 years old.

We took their property off the market about 6 months ago because their rate is getting ready to adjust again in April and they may need to refinance.

Last week we called the National Hotline, that was set up by President Bush, to see if we could get some help. They referred us to a group called NACA. NACA is the Neighborhood Assistance Corporation of America. They are a non-profit organization that offers low fixed rate mortgages as a part of their "Save your Home" program. It's designed for low to moderate income homeowners that are struggling to make their mortgage payments due to predatory lending practices.

Supposedly, if "The Lovelys" can get approved they will get a fixed 30 year mortgage at 5.375%. That will save them about $800 a month and give them some breathing room to be able to wait out the market decline.

From everything I've read so far "The Lovelys" do qualify for the program. It's their primary residence, they don't own any other properties, they refinanced more than 2 years ago and their interest rate is currently over 10% on the first and over 13% on the second. And they have never been late on a payment.

Their bankruptcy was discharged more than a year ago. If they hadn't filed bankruptcy they would not have been able to keep current on their mortgage payments.

So my question is.....do any of you have any experience with NACA? If so, what can you tell me about them that may help.

I took my computer over to "The Lovely's" today so we could submit the proper forms to NACA to get the ball rolling. Any and all insight you can give me would be appreciated.

I am determined to help "The Lovelys" through this situation in any way that I can. Can you imagine being in your 80s and having these types of issues? I can't. So please help. Any ideas?

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://www.brokerbryant.com/
***The content of this blog is solely my opinion***

Posted by Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc on 03/05/2008 04:22 PM

Comments (43)

real life, naca

43 Comments on When your house becomes a prison! "The Lovelys" need help!!!

MAR

2008

Reserved Parking For "The Lovely Wife"...TLW...ROAR!

Blog Boy...

Please hold my place...I'll be back as soon as I can.

Best wishes from the ole ball and chain :)

TLW...ROAR!

Wow - I hope that it works out for these people, thanks for sharing. Sorry I don't have anything valuable to add about NACA, but I'll be watching responses to this post!

Bryant, I don't have any advice but I have to say I admire your ethics and desire to help people. It would be nice if more people were like you!!!

I have no ideas for you, big guy, but it was wonderful to see a post from TLW. Even if it's just "I'll be back later."

Hugs.

Bryan,

Sorry I can't help.

I just stooped to say you make me proud! This kind of help is above and beyond the norm.

God Bless the two of you.

Good Luck!

Please keep us informed.

Bill

NACA is tops in my book. I've had several buyers qualify and it's a good deal for buyers and sellers.

The program pays for everything. The program guidelines are stiff, but it's worth it.

You actually received a response from NACA? Unreal, we sent them tons of documentation they requested only to get lost in the abyss...I hope you have better luck. Our clients were told they fit the parameters as well.. It seems they`re understaffed and in my opinion there lies themain problem to this program.

What a guy!

Parked for more info...

I hope things work out for them. The agencies that I have talked with say the biggest problem is getting people to contact them before they get in too much trouble. Best of luck!

I've never worked with NACA but I'll be back to learn from those who have. I admire the fact that you are trying to help... says a lot about your character. Best of luck with getting these people some help.

Bryant- I am parked to learn more about this program. I hope someone has some insight as we have a 77 year old who wants to save his house too.

Quick question... regarding your first story about the Lovely's.... how does one end up owing 50,000 on the sale of a home due to an attorney mistake? I thought a married couple could grab a profit of up to half million before capital gains taxes clicked in...

BB,

From what I heard about the program it takes time and commitment to go through the very lengthy process. Last year one of my seller's looked into it but didn't qualify. Thanks for writing about this, I just thought of someone who may benefit from this! :)

Sorry big guy... I Can't help with this one... parked to see what you dig up though.

Hi BB - any consumer fortunate enough to be able to hire you and have you work with them is lucky indeed. You care so much about each of your clients, and knowing all you do in their best interest puts you at the top of the ladder in my book. I am continually impressed by all you do.....

I will be watching to see if anyone responds here with more detailed info for you, as I'm sure there are some in my area that could benefit from this as well.

Ann

What a great guy you are for helping these people! I have no advice for you...just good wishes!

Good Luck and I commend your assistance in helping your clients. Have you tried calling the Tampa Office?

I have not had experience with them either but I'd love to learn more. Good Luck.

Bryant, I remember the original post on the Lovely's and the collection you took up for them. But sorry I can not help you here because I have not had any experience with this program. I hope it works better than other programs that were set up to help people in these types of loans, but all they offered was faults hope. I hope there is another follow-up post with a happy ending to this.

BB, I think it's great the way you've dedicated time and effort to these people. It shows you are a caring person. I tuned in to see the responses and see if it would be worth pursuing if I ever run into people in the same situation. If I hear anything I will email you.

You and yer missus thar are lookin mightly purdy in that there photo! LOL And no, I don't have any experience with this program. I'll be interested to hear how your clients do with it.

BB, I have never used this program. I will ask several people in my office and get back to you. AJ

Bryant, I've had two transactions involving NACA. They had great programs and were a total pain in the butt with the beaurocracy, and the buyers got terrific deals. In both cases, it was worth the hassle. These were both people who bought several years ago, and by now they (NACA) might own a computer or two. They are good people, and I hope they help these lovely people. They deserve a break, and good for you for helping them.

MAR

2008

I have the same question as RRSaftey:

"Quick question... regarding your first story about the Lovely's.... how does one end up owing 50,000 on the sale of a home due to an attorney mistake? I thought a married couple could grab a profit of up to half million before capital gains taxes clicked in... "

I don't see how they could owe the IRS $50,000, if they were tax exempt up to $500k on the profits, unless it didn't qualify as their personal residence. They bought another home and didn't pay cash, so that tells me the profit is under the $500k. I would have them speak to an attorney if this doesn't add up. They may be able to get the $50k back with interest.

Please keep me informed.

Thanks Charles, that is kind of what I thought. Stories like this make me nervous because I don't plan on paying any taxes when I sell my home when I retire, so it scares me when i read something like this out of the blue that someone was whacked for $50k. Not that I blame the couple, but that lawyer probably did something fishy in the first place and then it bit them in the rearend once they sold...

I don't have any input on the program, but thought I would offer my prayers and thoughts for the Lovelys. It's nice that they have your help.

BB,

I'm wondering if the process is worth it to only save 800.Does that mean it will only be a temporary band aid? How long can they wait for the market to change? Also how long it takes for you to get an answer.

Neal, Only $800 a month? These folks are on social security. $800 is the size of one of their monthly checks. It's a ton of money.

RRsafety, I'm not sure how they ended up owing 50k on the sell of their NY house. This would have happened in about 1989. They didn't find out they owed it until after they had put all of their money into their new house in Poinciana. Then they had to refinance to pull it out and pay off the IRS. I need to research this some more. I read your comment last night and got me thinking that if this was a mistake I wonder if it's too late to file with the IRS to possibly get it back? It is my understanding that it was their primary residence and had been for years.

Lenn called me yesterday to give me her insight on NACA. They sound very good. Difficult to get through but there are no costs involved. They have an office in Tampa and "The Lovelys" are scheduled to attend their 4 hour seminar later this month.

I appreciate everyone stopping by and giving your support. The last time I posted about The Lovelys I printed off the post and comments and gave it to them. They really appreciated the support.

AR also chipped in and we were able to give them $1,000 back in late 2006 that paid for their bankruptcy.

I also was able to get the Orlando Sentinel to do an interview and article about them last year.

They haven't done anything wrong. Just nice folks that trusted too many people and made some bad decisions.

Thanks, BB, if it was 1989 that makes much more sense. I think there was a big change in the tax code in 1997 or thereabouts that significantly changed the way capital gains are handle on the sale of primary residences. Best of luck to them.

I can only think that $800 is not chump change and if it can help them, great!

Bryant - this is a great post - I have enjoyed reading all the comments and gotten an education at the same time! thanks!!!

Thanks for the tip on NACA. Unfortunately it appears that they are understaffed. This post probably won't help that situation at all. ( the staffing ) Good luck with helping the Lovely's.

MAR

2008

I had to respond to this one just because of the pic!

I have no experience with this program. But like all the other comments I hope you keep us posted on it as we all may need to use it for our clients before this is all over.

BB- Sorry this is a cut and paste (from an email I sent someone) as it is the 3rd Post I put the info in and hey need to save all that typing :) This info is pretty good....there is a process, and the app is online. It's worth a try as well, and if not for the Lovely's then maybe for some of those people parked all over this blog :)

Foreclosure Resource for Home Owners:

I did a webinar today on saving your home....it was pretty good. There is a non-profit Group called ACORN that got a Government Grant to help people in pre-foreclosure...their 800# is 888-409-3557 for Foreclosure Stuff. anyway they contact lenders for you, etc. They have a website that you can download the app from, etc. anyway.....that is a good resource for all of us to give (or use). In the e-PRO Group Frances Flynn had written about this
Webinar, and it really was good.....the stats from our survey was 55% of the respondents knew 1-3 people who are at risk of foreclosure.....and ACORN helped 60% save their home -amazing isn't it!

I think Countrywide was one of those that are on the Govt list to stop Foreclosure stuff for 30 days....this is the Hope Now Initive. This project was discussed in the class as a smokescreen, a band-aid, that really does nothing!!!!!! The lady from Acorn said it doesn't even give you enough time to work anything out, and basically it is just a 30 day stay...... :)

Services are Free- they have a Loan and Refinance part, but that now has a FICO requirement of 620.....but the Foreclosure part has no FICO, and is FREE to people in default; no investors, just owner occupied......

Bryant, I wish I had some great information to pass on to your client. Sadly I am stummped. Sorry.. I wish him the best

BB,

Whether or not it's a lot of money....how do you think it will effect them and to me it sounds to easy...there has to be some sort of complications but I guess you'll find that out later after more research. I'm just going by what I read.

I am hanging out waiting to hear the end of this ... thank you for being part of the good guys.

Hi guys, OK we have made application and have scheduled a class for later this month in Orlando. They have to go through a 4 hour class about home ownership and managing money. From there they will be assigned a counselor to walk them through the program. If for some reason they don't qualify for the NACA refinancing NACA will actually assist them in negotiating with their current Lender.

So far NACA has been very receptive and quick to respond. All the contact is being done through my email so I can stay on top of everything. It's very interesting to see their process unfold.