PRESIDENTIAL RALLY STONE’S THROW AWAY FROM HOUSING CRISIS
(Richmond, VA ) A mile away from where the President of the United States makes his case for four more years, hundreds of struggling homeowners with government backed mortgages try to save their home at NACA’s American Dream Event. President Obama addresses supporters and the nation in Richmond, VA today while at the same time many who voted for him are sitting in the Richmond Convention Center asking why he didn’t fulfill his promise to aid the housing market and homeowners at risk of foreclosure.
The non-profit HUD certified Neighborhood Assistance Corporation of America (NACA) is holding the American Dream Event in Halls C & D of the Greater Richmond Convention Center. NACA has more than two million members. The event provides free housing assistance by restructuring mortgages to an affordable payment and by originating low interest home loans to mainly first-time home buyers.
NACA’s founder believes the President has an opportunity to get us out of the housing mess if the administration will allow those with government backed loans to find the same kind of relief as homeowners with privately held loans.
“They need to get their own house in order. It’s ironic that we can take the financial institutions to task and force them to help homeowners in trouble, yet the Obama administration refuses to modify mortgages on the home loans under the government’s control,” said NACA CEO Bruce Marks.
Take Shawn Dandridge from Mechanicsville, VA for example. He and his wife received a loan modification at the event in Richmond saving the family $518.00 a month. But Bonnie Bowman of Crewe, VA wasn’t so lucky. The single mother has an FHA loan where government guidelines exclude her from saving her home.
While the government should set the most positive standard, it is the worst in providing foreclosure assistance. What is even more outrageous is that NACA’s success demonstrates that large numbers of mortgages can be modified often on the same day at a NACA American Dream event. It’s hypocritical when President Obama blames others while government programs are the most aggressive in foreclosing and the least flexible in providing affordable solutions.
In fact, while much more needs to be done with the loan servicers and private investors, they are much more willing to provide long-term affordable solutions. Modifying VA and FHA backed loans to a homeowner’s affordable payment is nearly impossible. Like VA loans, FHA will not reduce the interest rate below the current market rate or eliminate a portion of the outstanding principal. In addition, the entire process is extremely problematic.
Mr. Dandrige of Mechanicsville says he can sleep well knowing the family’s home has been saved, but Ms. Bowman of Crewe, VA wonders how long she can hold onto her FHA loan before the government forecloses on her home.