Now, after eight months of the Making Home Affordable Plan and it’s well documented lack of performance, the media is starting to publish solid statistics on the failure of lenders to exhibit good faith in mortgage modification negotiations. An article today in Pro Publica is one of those media posts. Pro Publica is a well known and respected source of information on the mortgage modification industry.
This article deals with the U. S. Treasury Dept requiring the explanation of denial to certain distressed mortgage applicants. The REST Report uses the same software platform the banks use to calculate the best solution for a distressed mortgage. By purchasing the REST Report and including it in a mortgage modification or short sale, the homeowner is assured that it will be shown to the actual investor in your mortgage. Questionable figures by your servicer will be eliminated. We have seen spectacular results in the courts in upholding REST Report results.
There currently is no reason to pay a third party to negotiate your mortgage modification. Short sales proceed much more efficiently with an investor experienced in negotiating mortgage deficiencies before the closing.
The article points out that the requirements for denial reasons will only be partial. Not much help, really. Again; why a distressed homeowner would seriously believe that their mortgage lender has their best interest at heart is beyond me. If your lender can’t or won’t tell you why you were denied, what else might they be hiding? You really believe that even their first offer of a modification is the best they can do? That sympathetic voice at the other end of the phone is not the decision maker in resolving your troubled mortgage.
The article does point out what is called an ‘NPV test’ or ‘Net Present Value.’ NPV is the bottom line calculation made by your lender/servicer to assess the most efficient solution to your distressed mortgage. A mortgage modification or short sale is immensely more advantageous than a deed-in-lieu of foreclosure, foreclosure, or bankruptcy.
The author incorrectly refers to a borrowers FICO credit score as one consideration. In fact, credit scores are not used as a consideration. A mortgage modification is a re-writing of the terms of a current mortgage. It is not a re-finance. A credit report may be used to document a borrower’s monthly consumer debt, but that’s all. Lenders want to be assured that a beneficial mortgage modification will succeed in the long run. Distressed homeowners should be also.
It is incredibly humorous to me that lenders are afraid that if they are forced to reveal their NPV calculation, it will result in too many appeals.
Imagine that, a flood of appeals pertaining to a proprietary lender calculation? This is truly laughable. The REST Report gives you that critical number.
The article returns to the profile of a previously denied distressed homeowner. She was denied a mortgage modification partly because of property equity. In fact, equity is not a consideration for the Make Home Affordable Program.The courts are being incredibly receptive to REST Report calculations in a foreclosure defense.
The lenders are allowed stupidity in their business. They can take as long as they want to respond to a mortgage modification application. What they can’t do, if the REST Report is included, is fail to negotiate in good faith. Mailing all supporting documents certified mail, return receipt requested, is lose your file.
The article finishes with the conclusion that the new disclosure guidelines won’t help much.
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The internet being what it is, certain search terms need to be empahasized so that you can find the best information. The REST Report is best classified as loan modification software, or mortgage modification software. It’s claim to fame is that you use it to calculate Net Present Value exactly the way the banks do, using the same software. It is best used as a do it yourself loan modification or do it yourself mortgage modification. For some reason, loan modification 2010 and mortgage relief 2010 are popular search terms.
This YouTube video says it all. Go here: target="_blank">How to Get A Beneficial Loan Modification Now Please ‘Like’ the video, will you? That makes it easier for others to find.
Read it here
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No Improvement for New Loan Modification Transparency Rules – http://t.co/h9YsFc8q