After two years of the Home Affordable Mortgage Program (HAMP) the press is writing about the Net Present Value or NPV that is used to help calculate the prospect of a mortgage modification. As ususal, the reporters who author these articles don’t actually negotiate loan modifications, so much of the information is correct, but not all of it. In the article linked below, it’s obvious the reporter got his information from the banks and loan servicers. He didn’t consult with any successful mortgage modification firms. If they had, they would have gotten a more complete picture.
For clarification, real estate Net Present Value is a proprietary calculation by the nation’s banks that brings together the myriad figures needed to tell the mortgage investor what is the best solution for a distressed mortgage. FYI, it is ALWAYS a mortgage modification or short sale. The only party that benefits from a foreclosure is the mortgage servicer, and they do it all the time.
The REST Report uses that same bank software to calculate Net Present Value, so if it comes to a foreclosure defense, the homeowner beats the bank with their own stick.
The successful attorneys I used to represent for mortgage modifications had their own software to qualify eligibility for a mortgage modification. Problem was, it was their word against the mortgage servicers as to NPV calculation in court. The REST Report takes that argument away from the servicers because it’s THEIR software. And now, the REST Report is available to any homeowner in their own defense. After 4000 REST Reports, we have zero failures. It has prevailed every single time.
The author initially leads the reader to believe that NPV is the only variable used to grant or refuse mortgage modifications. Not true. But then they go on to discuss the hardship letter and it’s influence on the mortgage modification application. I have a proven successful hardship letter template that assures the attention of the most cold-blooded mortgage underwriter ever hatched. Over the course of a year and a half, I learned what got the attention of the decision makers at the mortgage servicers dark caves.
The author never mentions short sale as an alternative to mortgage modification. That is an oversight. Some mortgage modifications are not to be. A distressed mortgage solution needs to benefit both homeowner and mortgage investor, not the mortgage servicer. The REST Report also calculates a short sale price if a mortgage modification is not called for. This includes conventional mortgages AND government-backed mortgages that qualify for the new Principal Reduction Alternative in the Home Affordable Mortgage Plan (HAMP).
It is absolutely false that a credit score is used to calculate a mortgage modification. Debt-to-income is taken into account.
Do not waste your time selling your mortgage modification application to the person on the phone. They can’t help you. You’re talking to a call center. They make no decisions. I invite anyone who dares call their mortgage servicer and ask who writes their paychecks. There’s a fifty-fifty chance that your servicer doesn’t even pay their wages.
How one writes the hardship letter is the ticket to success controllable by the distressed homeowner. I have the best – proven.
How you submit your complete application is almost as critical as what you submit. It needs to be a legal document, which does not include FedEx, UPS or even standard USPS.
Applying for a mortgage modification without the calculations to support it, even with free counseling, is a recipe for failure, no matter how many times you apply. HUD counselors can’t do anything you can’t do yourself.
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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.
Click to read more about your Do-it-Yourself Mortgage Modification REST Report
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New blog post for Mortgage Mod Monster: Your mortgage modification and ‘net present value’ calculation http://bit.ly/ikwAkC
Your mortgage modification and ‘net present value’ calculation – http://www.mortgage-mod-monster.com/?p=379
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