Let's be perfectly honest, the Federal Governments Home Affordable Mortgage Program (HAMP), has fallen considerably short of it's expectations. Many home owners who have applied are denied for for various reasons, including Net Present Value (NPV). While some of these homeowners may have gone it alone, others may have hired a lawyer to help negotiate a loan modification with there lender. Either way, the Mortgage Servicer holds the key to the secret NPV calculation and they don't want the public to have it. Well, maybe not any longer thanks to the Loan Disposition Software now being made available to consumers!
Important Knowledge When Dealing with Your Lender
Knowledge is power, and knowing what the Mortgage Servicer is going to see in advance is a powerfull tool when trying to get a mortgage loan modification. Consumers really don't know where to turn, or even what NPV means. Worse yet, they might have saved themselves a lot of time and money if they just had the right information upfront so they can make an informed decision. We are bankruptcy and foreclosure defense attorneys, and if we can add a tool that offers an advantage we will recommend it every time. And while we leave no stone unturned in and effort to save our client's homes from foreclosure and properly inform them, we want to make certain we explore all options available. If you have been thinking about filing bankruptcy, applying for a loan modification, a short sale, or hiring an attorney, you may want to to do your homework. Millions of homeowners have denied for a loan modification be their lender with little to no explanation. Some declines may be for reasons your lender never explained such as “Net Present Value” or “Excessive Forbearance” or a bundle of other reasons that lack transparency.
The R.E.S.T. Report
We recently had a potential client come to us to file bankruptcy in an effort stop a Trustee Sale on his primary residence. He had been denied a HAMP program twice after using a loan modification attorney for almost a year, the foreclosure sale date was less than a week away. Low and behold, a R.E.S.T Report was ran in house (It took less than 30 minutes and a few hunderd dollars) and he PASSED! No a loan mod did not pop out the other end, however we now have valuble information to present the lender to encourage them to modify under the Goverments HAMP program. I am NOT saying a R.E.S.T report guarentees you a loan modification. What I am saying is the R.E.S.T report offers you powerfull information being the Loan Disposition Software contains the same complex calculations for NPV the mortgage servicers use for their investors.
Importance of the Profit Numbers
Further more, it give you hard facts and numbers for your attorney or yourself to argue your case in the event of a denial. On the other hand, should you fail for HAMP, lender progams are available for various loss mitigation services. If you can show the Mortgage Servicer a loan modification is more profitable than foreclosure, they are obligated to the investor to modify the loan. As an attorney who has worked 2 years in the foreclosure defense field and now bankruptcy, I have many borrowers enter long and expensive trial modifications, only to be denied a permanent modification and face a subsequent foreclosure, because neither the borrower nor the lender knew in advance if you qualified for HAMP. Now with the loan disposition anaylisis (REST) report we can determine qualifications prior to engaging your mortgage servicer and help avoid bankruptcy. If you do not qualify, the report suggests other alternatives and you will know in advance to avoid a costly trial modification, only to later be denied and in foreclosure. Not to mention your hard earned money waisted.
How the HAMP Program Works
HAMP loan modifications require homeowners to enter into a "trial modification" phase prior to a permanent modification being granted. During the trial phase, homeowners make "trial payments," but because trial payments don't stop the foreclosure clock, if you're declined for a permanent modification, the bank is free to sell the house at a trustee sale, which can occur within a matter of days. The unfortunate this is, we see them trying to do this all to often. Typically, with poor communication and little undestanding. The problem with the Goverments HAMP program is that, even though you qualify according to the published guidelines, you still have to pass the Net Present Value (NPV) test, and how you do that, is not available to the public. It's the secret calculation used to determine if the investor is better of cutting thier losses.
Talk to a Foreclosure Defense Attorney and Save Your Home
We have seen thousands of borrowers think that they are on their way to a perminant loan modification that will allow them to avoid foreclosure, end up being told that they failed the NPV and they may be on the streets if they don't file bankruptcy. Now the government says that homeowners won't be allowed to enter trial modifications until their lenders or servicers have verified all supporting documentation. So, now a homeowner will be expected to spend all that time getting all of their documents together, submitting them to their bank, waiting for months sometimes for the bank to say yes or no? There has to be a better way, and that way would be to order a HAMP.
If you are struggling with your mortgage payments and fear losing your home to foreclosure or walking away from an upside down property you should call a foreclosure defense attorney. The attorneys at Zhou & Chini will be happy to offer you a FREE consultation and help you explore all your options. Please call us toll free at (800) 972-9600 or visit us online.
