(Boston, MA) The Wall Street and the Fannie/Freddie Bailouts have not assisted at-risk homeowners. On Saturday October 18th in 38 cities across the country NACA is doing what Congress and the Administration refuse to do – make the mortgages affordable for homeowners at-risk of foreclosure. Ten of thousands of homeowners will be attending workshops to take the first step in restructuring their unaffordable mortgage.
NACA is the most effective organization in assisting homeowners by permanently reducing the interest rate to 5% or less based on the homeowners documented budget. The Restructure Solution has been implemented by Shelia Bair as she runs IndyMac once one of the major predatory lenders. NACA has been able to restructure thousands of loans through its legally binding agreements with the major servicers and cooperation with others. NACA’s Save the Dream of Homeownership Campaign puts homeowners on the path to an affordable mortgage payment just like it did for Deborah Keller of Kansas City, MO. “I’m saving $306 a month after NACA negotiated a lower interest rate.”
The Restructure Solution is utilized by Countrywide, Citigroup, Bank of America and other servicers have signed on because it makes economic sense – true homeownership is maintained, communities are stabilized, servicers who are overwhelmed are provided with solutions, and investors realize some return as opposed to no return and the likely hundreds of thousands in losses resulting from a foreclosure. According to Bruce Marks, NACA CEO, “any plan connected to the financial crisis must include the following three elements for at-risk owner-occupants as stated and implemented by Shelia Bair with IndyMac:
- Moratorium on foreclosures
- Stop the interest rate increases
- Restructure mortgages to what the homeowners can afford based on their documented household budget.
There is recognition that One Trillion dollars of taxpayer funds to stabilize the financial industry has not addressed the underlying issue of the millions of homeowners at risk of foreclosure.
The Restructuring can and must be done on a large scale. This can be accomplished throughout the financial industry if Secretary Paulson would adopt for Fannie Mae the Shelia Bair and NACA standard. This would not require any taxpayer funds. This weekend tens of thousands of at-risk homeowners will begin the process of restructuring their mortgage. Now the congress and administration need to adopt this for every at-risk owner-occupants benefit from the NACA. Join NACA’s Save the Dream Campaign by logging onto NACA.com. Homeowners with an unaffordable mortgage should sign up now to reserve their spot.