Author: Where you told that you were denied for the HAMP Loan Modification because you failed the NPV calculator and you are wondering what that means?
Most borrower have no idea what an NPV calculator is and don't have a clue why they failed it.
Here is the Definition of NPV as it relates to Home Affordable Modification Program:
The "NPV Test" (NPV is "net present value") is a formula used to determine your eligibility for a loan modification under the HAMP Program. The purpose running an NPV calculation test is to decide if the investor of your mortgage is in a better profit position by approving you for a modification (basically which choice gets more money to their bottom line) or if they would have a higher profit margin by allowing the property to foreclose. This formula takes many different factors such as current value, foreclosure costs, resale time and compares this with payments on the reduced rates, how much principal they would have to defer interest free to make you qualify under 31% of your gross (pretax) income, after the other "waterfall process" steps the HAMP underwriting guideline require in order to lower your payment were first calculated, along with the risk in possible repeat default, and many other figures that are called values. In other words, it is the comparison of two formulas with multiple factors, that are then compared to see which is greater in profit to the investor of your loan. Most times the investor is not the same as your servicer. It may be Fannie Mae or Freddie Mac, other investors are participating in the Home Affordable Modification Program HAMP.
If the borrower is not approved for a HAMP modification because the transaction failed the NPV calculations, then the servicer must, explain what the NPV means tell you the factors used to make the NPV decision and advise you that you may request the values used in making the calculations along with the date the process was completed within 30 days of the notice of denial. and dates. The reason they have to provide this information to you is to give you the opportunity to make any necessary corrections to the values they used as they make or break your ability to be considered eligible for the Home Affordable Modification Program HAMP.
You can request the specific NPV values verbally or by writing to the servicer within 30 calendar days from the notice date and they must answer your request within 10 days.
If you request the NPV values and you have a foreclosure sale pending the servicer must not complete the foreclosure sale until 30 days after they deliver those values to you to give you time to correct the inaccurate values. If there are any.
Once the evidence that the NPV values used were inaccurate, the servicer has the burden to make the necessary verifications to see if the corrections are material to the outcome of the NPV.
Some values don't affect the outcome and do not warrant a change from the original NPV. If you find inaccurate values in the NPV calculations and you follow the protocol for advising the lender then your servicer must reconcile the inaccuracies prior to proceeding with any foreclosure sale.
As always the best way to win at the loan modification game is to learn everything you can about the process so you can be empowered and successful with your loan modification and saving your home.
For Free Loan Modification Assistance and your Free Special Report "Dirty Little Loan Modification Secrets, You Must Know" sign up today at http://www.askaloanmodguru.com
Consumer Advocate/Expert Trainer for Mindset & Empowerment to Successfully Modify Mortgages & SAVE Homes/Loan Mod Guru. Article Source:http://www.articlesbase.com/mortgage-articles/denied-for-hamp-because-you-failed-npv-calculations-what-is-npv-test-1773568.html
Proven Record of Achievement: Modified over 130+ loans including Sale Reversals. My expertise can empower others during the housing crisis w/insider tips, process, & knowledge. My Goal is to help you succeed at saving your home.
With the economy in state that it is currently in, many people are dealing with the threat of foreclosure. From personal experience I can tell you that nothing is more gut-wrenching and nausea inducing then the possibility of losing your home. Their is is no magic bullet solution to avoiding foreclosure; just your rights within the law, and the actions that you take as a homeowner to deal with, and prevent the process.
Step 1: Communicate.
The bank does not want your house; they want your money. A house might be a valuable asset, but to bank, it is a lose of liquidity and a hassle. This means that if you communicate with your lender as soon as you realize you might not be able to make a payment, they will be willing to work something out with you. Though they are perfectly willing to begin the process and take your home, banks would rather work out some sort of plan that will you in your home, and your cash in their pocket.
Step 2: Educate Yourself.
Though many foreclosure laws are universal on a national level, each state has specific laws governing the exact procedures surrounding the process. The only way in which you are helpless is if you do nothing. Contact local government counselors who will offer free, effective strategies for dealing with foreclosure. They will also inform you of your legally mandated rights, and what the bank can and cannot do to you during the foreclosure process.
Step 3: Be Proactive.
Stop feeling sorry for yourself and do something about your situation. Help is available to you if you are willing to step up and seize the situation. Yes, the situation is frightening and rustrating. Yes, you feel helpless, but that is a state of mind that you chose. The government will help you; your bank will work with you, but you have to educate yourself and become active. You are your greatest ally.
If you have questions about the foreclosure process look here for additional specific information. Article Source:http://www.articlesbase.com/mortgage-articles/dealing-with-foreclosure-1769288.html
mortgage
prequalification help here.
