Four years ago, I attended NACA workshop, got qualified and almost closed through NACA on a brand new house. An unfortunate set of circumstances caused us not to go through NACA. Honestly the blame can go both ways. We were also renting a home, which was on the market. Our landlord gave us until July 31st to move which was great because we were due to close mid-July. We also had to file for an extension for taxes, which was recommended by our NACA consultant. A week before our closing, our consultant (not the original consultant) mentioned that they would request from the IRS a summary of 2012 taxes filed. I explained we filed an extension and she said no problem. Me being proactive in this entire NACA process, I decided to call the IRS myself to get a copy. I found out that the third party vendor had not submitted our extension to the IRS. My sister ended up paying our taxes as a gift and we thought NACA (Citibank) could use our stamped paid receipt as proof of payment. The bank has to request the information directly through the IRS and the IRS told them the paid taxes would not show up in the system for 6 weeks. This was one of the worst weeks of our lives because, the landlord wanted us out of his home and NACA would not accept our copy of the paid receipt.
Now we were in danger of losing $5,000 from the building. The builder requested our NACA consultant call and give a firm closing date so they could possibly extent. The consultant never called. I work down the street from the NACA office and the date of the closing, I went to the NACA office and literally begged our consultant to call the builder to get an extension and she never did.
We ended up getting a loan from the builder, but the funny thing was, once we were approved for a loan through the building, with a comparable rate of the NACA loan, NACA (Citibank) decided to use our paid IRS receipt and move forward with the closing. We decided to go with the builder because we had already taken the money we had saved out of the bank to use for closing costs. Knowing that NACA wants you to account for every penny removed or added from your bank account, we decided just couldn’t go through the NACA ordeal again.
With that being said, would I recommend NACA, absolutely. If our landlord was not selling their home, I believe we could have convenienced the builder to extent another two weeks. The stress of the landlord wanting us out of his home took its toll and we had a school aged child to consider.
NACA does work, and you must have patience, patience, patience. I still recommend it to family and friends. The most important advice I can give you is to make sure all of your paperwork is in order; I do mean all of it. Stay on top of it daily. If you are renting, try to have an extra 2 month cushion to get your rent extended if possible. NACA does work.
Starting Score: EX:531 EQ:591 TU:614
