$2 Billion Mismanaged While Homes are Foreclosed

While California is engaged in massive budget cutting deficits, $2 billion is not being utilized to prevent homeowners from losing their homes, according to Neighborhood Assistance Corporation of America (NACA).
Thousands of California homes are being foreclosed even though the California Housing Finance Agency (CAL-HFA) has $2 billion in federal funds in the Keeping Your Home California (KYHA) program.  
This money can be used to prevent foreclosures, reducing the outstanding principal on unaffordable mortgages.
However, CAL-HFA has grossly mismanaged the program with very little of the funds being dispersed.  Last month, the agency provided funding for only 50 homeowners.  The principal reduction program has barely been utilized.
While  NACA has been effective in providing affordable solutions, it has not been allowed to participate.
NACA is the largest and most effective non-profit HUD-certified homeownership organization in the country, according to staff at NACA.  The organization provides the best programs for both homeowners who have unaffordable mortgages and homebuyers looking to purchase.  
NACA is working with over 100,000 California homeowners at risk of foreclosure and are beginning a four-week tour throughout the state. The organization will be working with thousands of additional homeowners, all of whom should be able to access these funds.  For more information and to participate, go to www.naca.com.
If NACA were able to participate, homeowners who are unemployed would be able to have their mortgage paid for a period of time and others who owe more than their property is worth could have their outstanding principal reduced by up to $100,000.   
However, CAL-HFA is more interested in adhering to outdated processes and timelines than in helping homeowners, according to NACA.
NACA’s participation could turn this failure into a success.  While CAL-HFA blames lenders and investors, NACA has legally binding agreements with all of the major lenders and investors that could benefit all the agencies in the program but most importantly California homeowners.
CAL-HFA is not using potential resources when desperate families with their children are unnecessarily being thrown out of their homes.  People can call Claudia Cappio, CEO of CAL-HFA, at 877-922-5432 to ask her why is she refusing to work with NACA and make this program work.

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