FAQ: Homeowners FAQ
The NACA Home-Save program assists homeowners with an unaffordable mortgage. NACA has been the most successful organization in modifying unaffordable mortgages. Through the program, homeowners able to reduce the interest rate to as low as two percent and sometimes also reduce the outstanding principal to make the mortgage affordable. This has been possible through NACA's legally binding agreements with all the major lenders and investors.
NACA has modified over 250,000 mortgages. NACA is the most successful and effective organization in assisting homeowners modify their unaffordable mortgage to achieve an affordable mortgage payment.
NACA's “Save The Dream” events set the national standard in assisting homeowners. Since 2008, NACA held 140 five-day or more events nationwide. These were spectacular events with hundreds of NACA Counselors and servicers/lenders with each bringing teams of upwards of hundreds of staff. Tens of thousands of homeowners attended each event, and many were able to have their mortgage modified the same day.
NACA is still providing the same foreclosure prevention and modification assistance through its Home-Save Program. There is still considerable demand particularly since there are very few organizations providing such assistance. The funding for NeighborWorks Foreclosure Mitigation Counseling program and other government funding has been eliminated. HUD's funding is not sufficient to sustain the level of counseling required to meet the demands of struggling homeowners. Thus many servicers are referring their borrowers to the NACA Home-Save program as it has a proven track record of success over many years particularly during the mortgage crisis.
Homeowners work directly with a NACA Home-Save Advocate. To start the process, homeowners must provide the following documents:
- Proof of income. Wage earners should provide paystubs. Self-employed individuals should provide their 1099 and most recent 6 months bank statements
- Tax returns - last two years
- Hardship letter
With these documents, the Home-Save Advocate provides a comprehensive counseling session. This includes creating a budget with the homeowner to determine a mortgage payment that they can afford. The Home-Save Advocate next creates a hardship affidavit with the homeowner. This document, together with the above documents, budget and the mortgage payment the homeowner can afford, is submitted to the homeowner's servicer.
The servicer reviews the submission and works with the advocate and homeowner to provide an affordable payment. To achieve this affordable payment often requires modifying the mortgage with a lower interest rate and/or principal reduction.
Yes. The NACA Home-Save program is free to the homeowner. The homeowner becomes a NACA Member without the need to pay a membership fee and NACA pays the cost of the credit report.
Homeowners should call the Home Save Department at 801-401-6222 where they will be assigned a Home Save Advocate. This advocate will assist the Member with preparing for their initial counseling session. The first steps in the Home Save process are:
- Contacting the Home Save Department at 801-401-6222 to be assigned an advocate.
- Starting the online Web-File submission. This consists of inputting the requisite personal and financial information to get started.
- Identifying and gathering those documents necessary for submission to the servicer/lender.
- Scheduling a counseling appointment.
The amount of interest rate reduction is determined by each specific investor's guidelines. The investor owns the loan and provides the servicer with the investor guidelines or servicing agreement. That agreement informs the servicer (the homeowner’s mortgage company) what actions are allowed during modification or loss mitigation. During the Home Save process, NACA will submit a request to the homeowner’s servicer for review and will advocate on their behalf. The new affordable mortgage payments are based on each specific investor’s guidelines together with the homeowner’s financial documentation, budget and affordable mortgage payment determined through NACA counseling.
Homeowners who are behind on their mortgage (not purchased through NACA) should contact NACA's Home-Save department at 801-401-6222 to be assigned a Home-Save Advocate. The Home-Save Advocate work with homeowners to compile and submit a complete package to the servicer and work to achieve an affordable solution.