National Home Buyer's Alliance (NHBA) overall, but more specifically Calumet City, Illinois creates false advertisements on the radio stations of primarily minority listeners. They offer to "... Create a system of financial and credit assistance that is combined with the specific needs and criteria for homeownership." However, this company wants applicants to pay a 100 dollar application fee (refundable) and additional fees per month in order to continue receiving a service from them. You must have negative and/or "bad" credit and need help with a down payment. The rest of their criterion is listed on their website.
At the time that I heard NHBA's announcement on the radio in Chicago, I decided that I would call them to schedule an appointment and discuss their services. Upon my arrival and listening to the agent speak of NHBA's services, I completed the application, but then declined the help. For one, buying a home was/is not new to me. I had never been asked to provide any money, (with the exception of an application fee or during a prolonged closing), to a lender. NHBA wants consumers to pay them a fee per month to keep their accounts active and they also want you to conduct a lease/purchase agreement for no-less than about 12-13 months! Please note: If a landlord turns you down for purchase, you must start the process over & NHBA will not refund your money unless you have been turned down by landlords several times for purchase. Now I am sure that you understand why I said no.
Interestingly enough, despite my decline, I qualified for NHBA services which prompted me to ask more questions. Upon speaking to the representative via telephone, he told me, "You do not have delinquencies on your credit, you have a down payment & you are already renting a home; therefore, you do not need us." A stop payment was placed on a 100 dollar check to NHBA for the application fee; however, NHBA created a "remotely created check" and drafted the 100 dollar application fee along with an extra 33 dollars from my account, unauthorized. 6-7 months later, NHBA had a representative call me to "bully" me into paying another application fee of 100 dollars with an additional 33 dollars. Their rationale: "Your bank filed fraud charges against us and we had to pay a fee for the fraud resulting in you owing NHBA the bank charges" (that were submitted to them by my bank). I asked the representative to send me a copy of the charge from the bank to NHBA and NHBA declined. 2 years later, NHBA still has not sent me a bill for this charge from the bank, but they have sent the amount "owed" to a collection agency. I made contact with the collection agency who informed me that I had one week to provide them with the money or this debt will go onto my credit report. I sent the collection company a copy of the draft of the "remotely created check" as proof that NHBA had been paid 2 years ago.
How have I dealt with this matter? I filed a report against this company with the Illinois Attorney General's office and with the Better Business Bureau. Clearly, this company is fraudulent, deceptive & treats consumers unfairly on multi-levels. It's very hurtful and wrong for a company to "identify" a specific population for fraud. Racial steering is an illegal real estate practice for real estate brokers/agents and I'm sure that NHBA's practices for targeting a specific population is equal to this unethical practice as well.
If you are having difficulties with obtaining the approval of a mortgage loan, my suggestion is for you to contact a large bank, such as Chase or Bank of America to discuss and obtain a plan for you to become qualified for a mortgage loan. These banks will not ask you for any payments to help you to obtain approval. If any money is needed, it is for an application fee to allow these banks to view your credit report.
Good luck!
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