Nonprofit lender offers foreclosure help
Firm opens office in Denver, has ties to Bank of America
By John Rebchook, Rocky Mountain News (Contact)
Published July 14, 2008 at 8:14 p.m.
Updated July 15, 2008 at 11:43 a.m.
A Boston-based nonprofit lender with $10 billion available from Bank of America for foreclosure help and new loans has quietly opened its doors in Denver.
The group, the Neighborhood Assistance Corp. of America, better known as NACA, provides no-cost, fixed-rate loans one percentage point below market, or about 5.5 percent.
And borrowers can get the below-market loans even with terrible credit.
"NACA does character-based lending, not credit-based lending," said Steven Wright, a broker with NetWorth Investment Properties, who volunteers for NACA in Denver.
The company, founded about 20 years ago, has offices in about 40 cities.
Kathy Casey, also a Realtor at Networth, said she thinks the program can make a huge dent in the Denver-area's record foreclosures.
"This is going to be a huge economic benefit for the entire state," she said. "But when most people hear about it, they think there has to be some catch."
Bank of America can offer the below-market rates because it holds all of the loans it makes in its own portfolio, instead of selling them into the secondary market, Wright said. And because Bank of America owns Countrywide, it makes a special point to work out those loans that are in foreclosure, he said.
NACA has hired two mortgage brokers in Denver, Jim Allen and Ollie Williams, who have 20 years and 14 years mortgage experience, respectively.
They noted that features of NACA loans include no down payments or closing costs, no pre-payment penalties, no mortgage insurance, no adjustable rates, no interest-only loans and no points or fees.
Anyone who gets help from NACA must first attend a free homeownership workshop. The next one is scheduled for 9 a.m. to 1 p.m. July 26 at Kingdom Connection Christian Church, 10680 Delmar Parkway, Aurora.
NACA is working with Mike Campbell, whose Highlands Ranch home is in foreclosure. He has a 7 percent first loan and an 11 percent second loan.
Zachary Urban of Brothers Redevelopment, who heads the Colorado Foreclosure Hotline, said NACA may not be the answer for everyone.
"There is not just one-size-fits-all, silver-bullet solution to wipe out this crisis," Urban said.
The hot line does not endorse specific groups, and Urban said he is a bit concerned that NACA in Denver is working too closely with Realtors, which could be perceived as a conflict of interest.
"But they do have a long track record and they're a well-established nonprofit," Urban said. "They've done good work in other cities."
For more information, call 303-217-7015 or 303-217-7016.
rebchookj@RockyMountainNews.com or 303-954-5207
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