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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

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Anonymous
#1594089

NACA_online can’t take constructive criticism. It’s cringeworthy reading this business replies with such a condescending tone. Just by that alone, I’m put off and disgusted.

NACA_Online
#1567466
Naca Verified Representative

The “Sam and Joe” story here is a complete work of fiction. Title to the home when purchased through NACA is absolutely no different than any other purchased with any other conventional mortgage.

Additionally, NACA retains no interest in the home whatsoever other than the $25,000 lien that exists to enforce the owner occupancy requirement, a measure designed to prevent greedy property investors from abusing the NACA program. Whether a foreclosure goes through the courts or not is entirely dependent upon the laws of the state in which the home is located, not how or through whom a mortgage loan is obtained. The national foreclosure rate runs at approximately 4%. NACA’s rate is 0.0062, the lowest foreclosure rate in the nation.

This happens for one very simple reason: NACA puts people in a home that they can genuinely afford and proves that their monthly mortgage payment is going to be affordable long-term. The single biggest indicator whether or not someone can maintain a monthly mortgage payment is their history of paying rent. Two years of on time rent payments is in fact a very accurate indicator of ability to make a mortgage payment, while credit scores come from an amalgam of completely unrelated factors. Many of those factors are beyond the individual’s control and are anything but an accurate indicator of ability to pay.

It’s truly sad to see someone so desperate to discredit NACA that they create a post such as this one, which is fabricated entirely of falsehoods. Tim Trumble Online Operations, NACA

Anonymous
#1556992

EXACTLY!!!!! Great comment I have been preaching this on here for a while and there is still ignorant people defending NACA.

It's better for people to work on their credit , pay debt down and save money to put down a 20 percent downpayment. Forget NACA!!!

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