NACA allows people with bad credit or no credit to become homeowners after continuing through a few hurdles created by NACA and in a few months many become homeowners. Let's be clear.
Our credit scores have been recorded for years and shows a persons financial handling afters years. Your mortgage will be based on years. (NACA steps are limited to months, which is very simple to complete). Now, if let's say "Joe" could not make on time payments for years, but made it thru NACA, it is reasonable to assume Joe will not be able to make continued on time home payments for 20 to 30 years.
With this in mind, after completing the NACA program, Joe does not have legal title to his new house. Joe only receives what's recognized as "equitable title". NACA holds "legal title". Now, "Sam" (Joe's friend) has a mortgage on his home.
Let's say that Joe and Sam run into hard times and defaults once. To remove Sam from his home, he would have to be taken to court to be removed. Joe only has equitable title, which means no courts are needed. Joe just gets served (ie.
30 day notice by the sheriff) and his home can go straight to auction. Considering Joe's credit score shows he's not good with timely payments and will lose all monies put into his home, Joe would have been better off taking money management courses, increasing his credit score and in time, be patience and getting a mortgage