Homeowners seeking loan modifications are well aware of how long, complicated, and uncertain the process is. Loan modifications that drag on for months, require multiple document submissions, and then result in a denial have become commonplace, leaving these homeowners either facing foreclosure or bankruptcy. The reasons given by lenders for the denial of these modifications are often vague, unspecific, or point toward the homeowner not being able to qualify for modification under HAMP guidelines.

 

Homeowners seeking loan modifications are well aware of how long, complicated, and uncertain the process is. Loan modifications that drag on for months, require multiple document submissions, and then result in a denial have become commonplace, leaving these homeowners either facing foreclosure or bankruptcy. The reasons given by lenders for the denial of these modifications are often vague, unspecific, or point toward the homeowner not being able to qualify for modification under HAMP guidelines.

What most people don’t realize is that the lenders aren’t making their decisions based on their borrowers’ financials, income, or employment. In a vast majority of cases, the deciding factor for whether a loan modification is approved or not is a calculation called a Net Present Value Test (NPV). This test, with a formula which has never been fully revealed to the general public, guides lenders by telling them whether they will be served best by foreclosing, going with a short sale, or modifying the loan. In other words, if you’re trying to get a loan modification a computerized program is likely to decide whether you will keep your home or lose it to foreclosure.

Loan modification law firms can now provide consumers with all the information that the lenders use in their NPV tests. Using a software program called the REST Report; homeowners will obtain an assessment which contains the same information as the NPV test before starting the loan modification process. The report takes the property and homeowner data, defines the NPV, and then details several financial outcomes and modification options resulting from the change of terms on the existing mortgage as compared with the costs of foreclosure or a short sale.

The REST Report also eliminates the possibility of surprise from the lender denying a loan modification because the homeowner doesn’t qualify under HAMP guidelines. The REST Report determines eligibility in advance, meaning that if you don’t qualify for the government program, the REST Report provides additional options for loan modifications through other means. Under either circumstance, the report provides you with detailed and verifiable information which strengthens your case for a loan modification.