Consumer complaint received 2017-08-28
Company: Neighborhood Assistance Corporation of America ("NACA")
State: MA
Product: Payday loan, title loan, or personal loan
Sub-product: Personal line of credit
Issue: Getting a line of credit

Complaint:
I bought my 3-unit house back on XX/XX/XXXXwith XXXX through NACA program for {$500000.00}. I also got {$52000.00} to renovate some items on my house at that time, but I could not spend all of that money on my house due to NACA hand departments uncooperative with my contractors and a part of that money was returned back to my mortgage bank after two years. 

I needed money to do the rest of the renovation and some more items on my house and I decided to apply for the Line of credit through XXXX XXXX XXXX and after submitting all of the documents I was approved on XX/XX/XXXX for the amount of {$64000.00}. Then XXXX XXXX XXXX   contacted me that they can not give me the Line of Credit because NACA has a lien on my property. First I was shocked that NACA has a lien on my property  and then I found out that I signed a letter at the closing to give them that power. Then XXXX XXXX XXXX let me know if NACA accept to be the next lien ( third position ) after them, they will give me the Line of credit. I contacted NACA ( XXXX XXXX ) on XX/XX/XXXX. He responded me the following : We do entertain requests to subordinate our position to equity lenders, however, we treat the request the way we would treat a loan request with the attendant documentation. XXXX XXXX XXXX ( above ) will assign staff to collect and organize the paperwork. This process generally runs about 30 days once the paperwork is completed. 




After some emails back and forth I got the following from XXXX XXXX XXXX a NACA supervisor on XX/XX/XXXX: What will you be obtaining the equity line of credit for? 

NACA will review for three reasons 1. Medical 2. Student Loans and 3. Home improvements.
In order to have the counseling session conducted you will need to provide the following : *30 days of paystubs *2 years of tax returns ( XX/XX/XXXXand XX/XX/XXXX ) *2 years of XXXX ( XX/XX/XXXX-XX/XX/XXXX) *90 days of bank statements *Information in regards to the loan ( terms of the loan : the amount, the i/r, the term, amount of the payment on a monthly basis, bank on which the loan will be drawn on ) If you are retrieving the equity line for home repairs, you will need to provide estimates of your project. 

If you are retrieving the loan for medical or student loans, you will need to provide all bills. 

Once that information is received into your NACA file, please let me know and I will have one of my advocates to contact you to conduct the counseling session. 




I responded to her on XX/XX/XXXX as the following : Well that Home Equity Line of Credit is for all the following items that I am going to use. I will use it and then return back and then use again. 

1 ) I paid around {$110000.00} using my credit card for my wife recent XXXX.
2 ) Need to renovate the following at my property at XXXX XXXX XXXX in XXXX a ) Bathroom b ) Removing rocks and ledges on the driveway and backyard c ) Removing driveway asphalt and make it to have the right slope 3 ) I need to renovate the following at my property at XXXX XXXX XXXX in XXXX a ) Add a new bathroom for the second unit and an extra closet b ) Removing driveway asphalt and make it to have the right slope 4 ) I need to help my daughter to pay a part of her loan. She needs my help. 
She got her XXXX  in XXXX and owes lots of money and needs our help. 




I sent all of the documents she needed on XX/XX/XXXX through the NACA system and her email. After several emails and communicating with her, I made sure she got all documents on XX/XX/XXXX She responded on XX/XX/XXXX the following : Do you have any estimates for the work you are getting  done? 




I sent her my daughter bill for her education and responded to her the following on XX/XX/XXXX. 

As I explained, I would like to help my daughter first to pay a part of her loan. 




She responded on XX/XX/XXXX. 

I got that, but thought it was for home repairs as well. 




I responded on XX/XX/XXXX.
Let 's stick with that one for now. 




Then on XX/XX/XXXX I sent an email to XXXX XXXX XXXX as the following : I talked to NACA Advocate ( XXXX XXXX ) yesterday and she told me that she is going to send the documents to you for approval. Please let me know when you are going to approve that so I could follow up my line of credit with my bank. 




XXXX XXXX XXXX contacted me on the phone on XX/XX/XXXX to ask me a couple of questions in regard to the documents. He asked me to send him my daughter loan document then I sent him on the same day on XX/XX/XXXX as the following : This is the statement I submitted for this file for my daughter loan that she owes for her education. 




XXXX XXXX XXXX responded to my inquiry on XX/XX/XXXX. 

The subordination request will be decided this week. We have not had a request before where the equity loan funds will be used to pay education expenses retroactively. We will be expanding our acceptable uses in your case. That needs discussion with the governance of our company. Please note also, you were going to email me the XX/XX/XXXX pay stub : Then I sent him my pay=stub that he requested on XX/XX/XXXX. 


Then XXXX XXXX XXXX contacted me on XX/XX/XXXX to let me know that NACA decided to deny my request that NACA go to the third place to be able to get my Line of credit base on the following reason : Hello Mr XXXX : I am leaving work unexpectantly today but did not want you to wait over the weekend for news. I am sorry but your subordination request has been denied for reasons described below. 

It has been determined that we will not grant subordination when the new loan funds are to be used for retro-active education expenses. 

I will be back in the office on Tuesday for any questions you may have. 




I did not hear anything from XXXX XXXX XXXX and I decided to send him the following email on XX/XX/XXXX : You have all of the contractor estimations that I wanted to do some renovation earlier on my house when I had money with XXXX and could not finish them because of NACA to be unorganized and wasting the contractors time. Those all are more that {$70000.00}. You could consider those for another reason to get this Line of Credit. If you do not have those estimations, I am happy to provide them to you again with a condition you do it fast within a week to approve my Line of Credit. My bank approved me in two weeks for Line of Credit and you guys is more than 1.5 months and still having fun with my papers and documents! 

I have also another reason for this Line of Credit that my wife had a XXXX and I paid more than XXXX with my credit cards ( I am sure you guys may say that is also considered to be retro-active health condition XXXX! ) Would you let me know when you are calling me today? 




XXXX XXXX XXXX contacted me by phone on XX/XX/XXXX and did not accept my request to send him all of the contractors estimates to approve to go to the third place on lien. NACA is preventing me to get the Line of Credit from XXXX XXXX XXXX to take care of my house, and family. I am requesting NACA to go to the third place on lien so I could get my Line of Credit and do the renovation of my house that I need to do. I am submitting all the contractors estimates.
I am requesting NACA to go to the third place on my house lien so I could get my Line of Credit and do the renovation of my house that I need to do. I am submitting all the contractors estimates.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation