Help For Foreclosed Victims

July 21st, 2008 | Tags: Foreclosure Victims

At last real help is coming for foreclosed victims – something that should have happened long ago.

A non-profit housing group, The Neighbourhood Assistance Corporation of America will be holding a five-day event, ‘Save the Dream of Homeownership’ in Washington, free of cost. It will enable participants to get instant help to avoid foreclosures. Hitherto the borrowers had to wait for weeks before the loan servicers called back. It led to lengthy periods of heartbreaking tension.

NACA operates with over 300 certified counselors. They will be at the Capital Hilton Hotel to make on the spot offers for affordable modifications of troubled loans. The expectation is that over 5,000 foreclosure sufferers will attend. Some will have made an eight-hour drive from Ohio, Massachusetts and other distant places from the East. The event is for those who live in their own houses. The counseling will take about two hours. Although appointments are encouraged those walking in will also be welcome. Help is also at hand for those who cannot make the trip to Washington. They can talk to counselors over a hot line.

NACA has got the support of major loan servicers like Citigroup and Countrywide. Citigroup has aggressively come forward to see that foreclosures are avoided and people continue to stay in their houses. Citi inked an agreement with NACA to reduce the interest and or the principal on certain mortgages that qualify for the same. Through NACA the bank is in touch with the borrowers. Without the latter’s help they would have been unable to do.

What makes the NACA programme truly distinctive is that if the servicers refuse to cooperate then the NACA will take the rejected borrowers to Capitol Hill and directly complain to the representatives of the Congress. Till late the servicers have been a source of lot of frustration.

This positive attitude is most encouraging. Till now it has been all talk without fruitful results. Foreclosures have continued to increase. Critics allege that sufficient numbers of people are not being helped by the work out plans that Bush administration started off.

NACA will steer their help seekers through four steps including a forensic type test of their income and spending schedules. It would be like going back to day one of taking the loan. This way the affordability limits of the borrower can be assessed. After estimating this it will be presented to the servicers for them to reduce the load accordingly.