Can I Get A Mortgage Modification?

“You don’t need to force judicial mortgage modification on us, we will voluntarily modify mortgages, lower interest rates, do what it takes to keep people in their homes!  We do not want to foreclose!”

So the mortgage companies screamed to the politicians and the public, holding press conferences to announce the billions of dollars they set aside to re-work loans for people so they could avoid foreclosure.

So where are these mortgage modifications?  What happened to the billions and government programs to help homeowners?

Most homeowners I talk to cannot get anything approved.

Alexandra Andrews and Emily Witt may have the answer, exposing the secret test that the mortgage companies run to see if they will offer a mortgage modification.

There is still no way to force them to change the terms of the first mortgage on your principal residence.

So, homeowners understandable have to provide tax returns, pay stubs or other proof of income, credit report or other documentation of their debts.

And there are those formulas about percent of monthly take home pay versus mortgage payment.

So, what is the holdup?  What is the basis for so many denials?

“NPV test fails”  What the  . . . .?

Well, NPV equals Net Present Value.  Of your house.

OK, makes sense, value of your home should be a factor in the process of getting a mortgage modified.

Seems the mortgage companies will NOT modify a mortgage if they think they can get more money by foreclosing.

There is a surprise!  Mortgage companies motivated by money.  Who’d a thunk it.

So, how is this NPV determined?

Ooops, sorry, secret formula.

“The Treasury Department refused to release the exact formula for the NPV model  . . .”

That would be the same Treasury Department giving out hundreds and hundreds of billions of dollars to save the crooks, ooops, sorry, mortgage companies that created this mess.

So, not knowing what went into the formula, you do not know if it accurately estimated the cost of foreclosure in your state (varies according to state law) or what they use for the value of your house.

Once again, the mortgage companies win, the public loses.

Can I Get A Mortgage Modification?

Related posts:

1. Will I Get A Modification From My Mortgage Company?
2. Mortgage Modifications: Get it in Writing!
3. Tiny Percentage Getting Help Through Modification Program