Nonprofit's Foreclosure Program Outpaces Obama's

When Miriam Castro lost her job with the L.A. school system, the family fell behind on their mortgage and are now about to lose the house they bought two years ago.

"At this point, we're out of places to go and people to turn to for help," said Castro.

Foreclosure Shortcuts May Delay Housing Recovery

CBS News correspondent Bill Whitaker reports they came to NACA's Save the Dream tour desperate for help - just like 10,000 others who streamed through the L.A. Convention Center, some even sleeping overnight.

NACA, the Neighborhood Assistance Corporation of America, is putting banks and the homeowners face-to-face at tables to negotiate lower mortgage payments. Like 80 percent of those who came to the convention center, the Castros got help.

"They've been able to help us," said Castro. "They were able to dissolve…if everything goes well, we'll be able to save $900 on our mortgage."

While NACA has had success, the Obama Administration's Home Affordable Modification program, or HAMP, also designed to reduce mortgage payments, has not.

The government says more than 3 million homeowners qualify for federal help. But only 468,000 - about 15 percent - have actually gotten their mortgages modified and their payments reduced.

Bruce Marks, who founded NACA 22 years ago, describes the Obama Administration's program as a failure.

"President Obama, what he's doing is pleading, begging and bribing these banks," said Marks. "What the banks are doing is spitting in the taxpayer's face."