Mortgage Restructure Solution

Mortgage Restructure Solution:
The most viable and appropriate solution for most homeowners to save their home and to achieve true homeownership is to restructure their existing mortgage. This can be accomplished by reducing either or both the interest rate and outstanding mortgage amount to achieve an affordable mortgage payment. The mortgage payment would be based on what you can afford as documented on the Affordability Budget as described below. A Restructure changes the terms of the existing mortgage. It is not a refinance (i.e. new loan) and thus not conditioned on the major limitations for refinances or the paying off of a second mortgage. If the homeowner is unemployed NACA provides a forbearance with a minimum payment until that have steady income to have their mortgage restructured.

NACA does not advocate other solutions often pushed by Lender/Servicers and the government. These options include payment plans that increase the already unaffordable mortgage payment or where the payments go up over time. NACA does not consider selling your home or a deed-in-lieu to be viable solutions. If you are determined to keep your home and are willing to work with you in aggressive advocacy there is a good chance that you will not lose it. Servicers and investors are now more willing to restructure a loan given the collapse of the mortgage market and the significant loss they would incur with a foreclosure.

The Affordable Budget determines an affordable mortgage payment based on an analysis of your current financial situation. If completed accurately and completely, it will show the mortgage amount you can afford based on a tight budget consisting of the following:

Affordable Budget:

• Less:
  Required Liability Payments
  Required Monthly Expenses
  Allowance for Non-Recurring Expenses (usually $200)

Net Income:
Net Available Income for a Mortgage Payment (i.e. Principal, Interest, Taxes and Insurance)

NACA does not change or negotiate the terms of your loan. We submit your Affordability Budget with supporting documentation to the Servicer (the Servicer may not be the original lender) and request that they reduce your monthly mortgage payment to the affordable amount documented in your Affordability Budget. The servicer would reduce either your interest rate or outstanding principal or both to achieve the mortgage payment over the remaining term of the loan. The servicer has a lot of discretion in changing your loan terms. They have a contract with the investor(s) who owns your loan that gives them authority to modify or restructure your loan if you are at risk of foreclosure. If the servicer is unable or unwilling to accept the NACA solution, we are often given the opportunity to appeal the decision with investor. NACA has been extremely successful in achieving an affordable solution for thousands of homeowners. If the servicer and investor still refuse the Restructure Solution then NACA could work with you as part of the Homeowner Advocacy campaign.

NACA Process:
NACA has developed a streamlined process to best assist you. To begin the process you need to attend a NACA Workshop and then have a phone counseling session to submit your file to the servicer. If a workshop is not within 100 miles of your home, you can make do a counseling session without attending a workshop. You also need to complete the Web-submission. By doing your Web-submission, you will receive your NACA Member ID and password. This is crucial since it gives you access to your personal Web-File.

The key point of contact for updates and next steps is your personal file on our website (“Web-File”). Your Web-File which you can access on the homepage under Member is your personal page to obtain the status of your file, make appointments and next steps. Access you Web-File on www.NACA.com by selecting web-file/status under NACA Member. Put in your NACA ID and password. Your Web-File is continually updated and is the most effective way to stay informed and on your next steps. Please utilize your web-file for updates and next steps prior to calling a department or a Member Services representative. Remember, any issues need to be addressed by calling a Member Services Representative at 1-888-404-6222 option 5 on the main menu rather than the local NACA office. If you are beginning the process take the first step by attending a workshop now.

Go to www.NACA.com for detailed information

https://www.naca.com/program/homesaveProgram