HAMP Denied for NPV Test; Take This NPV and Twitter it!! How to Know Your Hamp Rights & NPV Test Calculations.
By: Anna Cuevas; The Loan Mod Guru
Get Empowered, know your HAMP Home Affordable Modification Program rights that no one will tell you about.
Notice of Non-Approval
For borrowers not approved for a HAMP modification, this notice must provide the primary reason or reasons for the non-approval. The notice must also describe other foreclosure prevention alternatives for which the borrower may be eligible, if any, including but not limited to other modification programs, preforeclosure sale, or deed-in-lieu of foreclosure, and identify the steps the borrower must take in order to be considered for those alternatives. If the servicer has already approved the borrower for another foreclosure prevention alternative, information necessary to participate in or complete the alternative should be included. The notice should be clear that the borrower was considered for but is not eligible for HAMP.
When the borrower is not approved for a HAMP modification because the mortgage loan is deemed NPV negative as outlined in Announcement 09-31, Updates and Clarifications to the Home Affordable Modification Program, the notice must include a list of certain input fields that are considered to reach the NPV result and a statement that the borrower may, within 30 calendar days of the date of the notice, request the date the NPV test was completed and the values used to populate the NPV input fields defined in Attachment 1.
The purpose of providing this information is to allow the borrower the opportunity to correct values that may have impacted the analysis of the borrower’s eligibility.
If the borrower (or the borrower’s authorized representative) requests the specific NPV values orally or in writing within 30 calendar days from the date of the notice, the servicer must provide them to the borrower within 10 calendar days of the request. If the mortgage loan is scheduled for foreclosure sale when the borrower requests the NPV values, the servicer may not complete the foreclosure sale until 30 calendar days after the servicer delivers the NPV values to the borrower. This will allow the borrower time to make a request to correct any values that may have been inaccurate.
Upon receipt of written evidence from the borrower indicating that one or more of the NPV values is inaccurate, the servicer must verify the evidence and, if accurate, must re-run the NPV calculation if the correction is material and is likely to change the NPV outcome. Values that are not affected by the correction do not need to be changed from the first NPV calculation. If the borrower identifies inaccuracies in the NPV values, the servicer must suspend the foreclosure sale until the inaccuracies are reconciled.
Source: Home Affordable Modification Program Guidelines
Save Your Home
I was just sent a letter, based on their preliminary review I do not qualify for the hamp. It says my wife and I dont fall in the 31% mortgage payment to income ratio. When we applied last summer the pre-qualification was based on net income, not gross and all of our living expenses and debts. Our gross is not a reflection of money we see. We have college tuition programs, 401k contributions, kids current tuition, insurance etc… coming out. Up front it seemed very important to budget for the proposed payments, while now we dont seem to struggle enough. We cant pay the portion past due now….I feel at a loss. Any suggestions?
Hello Jason, welcome to our site!
Unfortunately, (although I truly wish I had better news) the HAMP is strict on the 31% of GROSS income guideline. Many people have given up their 401k contribution to try to afford their homes – but what I can tell you is to ask if they can qualify you for one of their own NON-HAMP programs. Usually all of the other programs are based off of NET income and EXPENSES so if I were you that would be the avenue I would pursue. Ask several different people at your lender because you don’t always the full truth of what is available sometimes.
That would be the only other option if your gross income at 31% continues to be equal to or higher than your current payment.
Please let me know if I could answer any other questions for you.
EXPECT MIRACLES!
Anna
Let me know
Hi I need you help please….I have turned in a second fully complete loan mod package as of July 1st, 2010 with everything COMPLETE per several reps at Indymac Mortgage. Now following many telephone calls asking for more info{that was verified to be in the package] they now say I will hear in a “few more weeks”. Isn’t there a time deadline on how long a decision should take once the pkg is complete? These are the answers to the questions sent to my email address: Mortgage Bal…245,800 4 payments behind current value by eppraisal is 531,819 current payment of 3004 because of escrow problem lender is Indymac investor is Fannie Mae Total income[self employed] 6180mo property tax 150mo homeowners fee 78mo homeowners ins mo 458 For some unknown reason ..I have been asking since the payment adjusted in March they are insisting I pay 1334 per month to escrow????p&i is 1670for total payment of 3004….Will the equity in home affect NPV? We are a small business operating out of home…we did a major addition in year 2000 the year we started our business. please advise.
Hello Anna
I am so happy to find you, I am going on a emotional roller coaster facing a foreclosure, we have a small hotel business in the North West that has been going down in revenue steadily for the last year, we were semi-retired in Florida, we have 2 properties in Miami, one with Chase that has been our second home and the second with Wells Fargo an investment property.
As the business was not making enough to keep it going and pay the mortgages, we decided to rent the house and move back to Seattle to save the business. We tried to get a loan modification with both banks, always too much income or not enough, I find it difficult to work out the income and expenses, since we are living in the business and taking money from it to cover both the business and our expenses including 2 other mortgages of investment properties we have in Seattle,
We got an attorney in Miami to represent us in the loan modification, we never have much chance, even to get a negotiator or allocator to deal with our application, very quick we pass to foreclosure, now we have to pay an attorney $1000.00 ( for the 2 properties)a month to deal with the foreclosure.
The attorney said that I don’t have t worry about sending any financial info or dealing with the banks that he will deal with it at a higher level in court, and get better long term deal.
I need advice on what to do, Wells Fargo still calling asking for the financial statements, some people said that chase won’t modify on a property that is rented, even that we lived in it until October 2009 and was rented in January 2010.
I heard that is better to present $150.00 to $200.00 surplus to deal with investment properties, others said that is better to be 31% higher in net expenses.
Please advise A.S.A.P. I fill that we are running out of time to save our homes.
Thank you very much.
Hello Ili,
I am glad you found me too : ) Ok I am confused so is the attorney working on this or?? What exactly is going on with that? I know from experience that you do not want to send things in if your attorney is working on it because you could ruin whatever it is he is working on BUT is he working on it I guess is the question – You must find out where you are with them ASAP –
Do you know who is the actual investor in both of the loans (who owns the loans vs servicer)
You, Lord, are the light that keeps me safe. I am not afraid of anyone. You protect me, and I have no fears. Psalm 27.1
Expect miracles,
Anna
Hello Ili – I wanted to make sure you got my answer to this post? Did You – please let me know – what are the lawyers doing on your cases right now for 1000 per month??
When you say a prayer, He (Holy Spirit) is in every word of it, and like a Holy Fire, penetrates each word.
John of Kronstadt
Expect Miracles,
Anna
Hello Again Anna
I forgot to ask, if I will include the 2 mortgages I am in default in the expenses list.
Please advice
Thank you .
Ili
Ili,
The income from it in the income list (they will only use 75%) and the mortgage in the expenses list – yes – BUT PLEASE FIND OUT FIRST WHAT YOU ATTORNEY IS DOING!!!!
So be careful what you do. Luke 17:3
Expect Miracles,
Anna
The loan with chase is is Freddie Mac or Fannie Mae one of them, the attorney is working with the foreclosure cases,we signed the dcuments to represent us in February 4th, 2010 and they did nonething even to sent the notification to the cour and the plentiff attorneys until the 18th, as I found out that we were unrepresented.
They didn’t do much with the loan mod, they kept sayng, that it was to early to get responce from the banks
We banks kept calling, and we tarted working directly w/ the lender on a loan mod. butwith no advise from the attorney.
The letter or email our attorney send to Wells Fargo’ attorney
Our office filed a Notice of Appearance on behalf of Mr. and Mrs.Schultz in the above-referenced matter (same was faxed to your office yesterday). Please be advised that I am in receipt of your Motion for Default against Mr. and Mrs. Schultz (dated February 5, 2010). However, your motion was filed in error as my clients filed a pro se Answer on January 12, 2010 (please review the court docket). I am positive Judge Bagley will not enter the default against my clients but I just wanted to give you the “head’s up.”
I shall now proceed to the to the matter at hand: I will be filing a Motion to Amend the Schultzes’ pro se answer and would like to know if you have objection to same. Please advise if you will object to said Motion or if I should immediately schedule the matter for hearing.
Thank you for your understanding and anticipated cooperation in this matter.
The reply from Wells Fargo to our attorney
I have no problem w/ you amending the answer on behalf of the defendants. What is their intention w/ respect to the property? Per pro se answer, it seems like they are working directly w/ the lender on a loan mod. Is that the case?
What shall we do, it since that Wells Fargo still dealling with the loan mod, Chase failed because we probably did not present the figures properly
Anna
Here in Seattle is 12:40 am, I have spend lots of nights and days looking for answers, I am exhausted , I will go to bed and first time in the morning will carry on with this nightmare.
I will check your reply, and will call our attorney after.
Thank you very much, you are the answer to my prayers.
Good night, and God bless you.
Ili
Hello Ili, I’m sorry I was up past 12am too and I had to go to bed.
I am just confused about the attorney -so the attorney is ONLY going to court for you on the foreclosure but they do not work on your modification?
Dont know what this means:
We got an attorney in Miami to represent us in the loan modification, we never have much chance, even to get a negotiator or allocator to deal with our application, very quick we pass to foreclosure, now we have to pay an attorney $1000.00 ( for the 2 properties)a month to deal with the foreclosure.
If that is the case. Ok the thing is with both of these properties you will NOT be able to go with a HAMP loan modification but there were recently a new program for investment properties which I will post next – there are other in-house programs. Ok so where exactly are you in the process. Please go step by step and explain to me what they have told you and what you have done.
But he replied, “My kindness is all you need. My power is strongest when you are weak,” So if Christ keeps giving me his power, I will gladly brag about how weak I am. II Corinthians 12:9
Expect Miracles,
Anna
how di u calculate the nvp for a property and i tried to asked my lender to give mee one when they told me i was denied for a modfication but indy mac say that i qualify for the hamp program but due to the nvp i was denied and my house was going to be sold as schedule please help i dont want to loose my house
Hello Michelle,
Keep fighting Michelle – I am sorry to hear about what they told you – when is the sale scheduled? Stay on this and make sure you are aware of the dates as you are fighting this. Here is a good place to start – read this article about NPV then feel free to send me all of the details of your situation so I can help guide you.
Failed NPV for HAMP – information on how they calculate NPV for HAMP and what to do about it
Write a letter like it states in my article and cc the treasury and Sheila Bair of the FDIC – I am here for you Michelle, read about Cheryl and about Maria – both had Indymac and won after being denied many times!!! You can do it.
Now may the God of hope fill you with all joy and peace in believing, that you may abound in hope by the power of the Holy Spirit. (Romans 15:13 NKJV)
Expect Miracles,
Anna Cuevas
IndyMac (now OneWest) says I failed HAMP. I applied through NACA. Both NACA and I have requested a letter sating their reasons I was denied but we have never received the letter or anything at all. It has been a month since our requests were sent. The lender stated on the NACA site that I failed HAMP but was under review for “cap to reinstate” I have no idea what that means. I am in a Chapter 13 that I filed to stop the original foreclosure date. The trustee has given me until July 10, 2010 to obtain the loan modification or he will not approve my plan. Doesn’t the lender have to give me a letter why I failed HAMP under the fair credit reporting act? Is there anything I can use regarding this law that will stop them from trying to foreclose again in July?
Hello Sharum, What I would do is send a letter to the Executive team at One West Bank and cc the FDIC Sheila Bair and the Treasury again requesting the reasons of your denial – do you know who your investor is? Cap to Reinstate is probably that they are gathering all of the late payments and back interest to reinstate thru your Chapter 13 –
The Fair Credit reporting act has nothing to do with HAMP but under the HAMP directive – Include this language in your escalation letter letting them know they are violating HAMP guidelines by not answering your initial request:
EXHIBIT A BORROWER RESPONSE PERIOD
The model clause in this exhibit provides sample language that may be used to explain the borrower response period that exists after a borrower is issued a Non-Approval Notice unless the reason for non-approval is (1) ineligible mortgage, (2) ineligible property, (3) offer not accepted by borrower/request withdrawn or (4) the loan was previously modified under HAMP. Use of the model clause is optional; however, it illustrates a level of specificity that is deemed to be in compliance with language requirements of this Supplemental Directive.
You have 30 calendar days from the date of this notice to contact [name of servicer] to discuss the reason for non-approval for a HAMP modification or to discuss alternative loss mitigation options that may be available to you. Your loan may be referred to foreclosure during this time, or any pending foreclosure action may continue. However, no foreclosure sale will be conducted and you will not lose your home during this 30-day period [or any longer period required for us to review supplemental material you may provide in response to this Notice].
REGARDING Bankruptcy:
In Supplemental Directive 09-01, the Treasury Department (Treasury) announced the eligibility, underwriting and servicing requirements for the Home Affordable Modification Program (HAMP). Under HAMP, servicers apply a uniform loan modification process to provide eligible borrowers with sustainable monthly payments for their first lien mortgage loans. This Supplemental Directive represents an ongoing effort to improve program effectiveness by amending policies and procedures related to borrower outreach and communication, especially with respect to the initiation and continuation of foreclosure actions and extending HAMP benefits to borrowers who have filed for bankruptcy court protection. These changes become effective on June 1, 2010. The changes set forth herein do not abridge a servicer’s ability to service delinquent loans in accordance with industry standards.
The significant changes described in this Supplemental Directive include:
Clarification of the requirement to solicit proactively all borrowers whose first mortgage loans are potentially eligible for HAMP and who have two or more payments due and unpaid. Reasonable solicitation efforts are defined.
Prohibition against referral to foreclosure until either: (i) a borrower has been evaluated and determined to be ineligible for HAMP; or (ii) reasonable solicitation efforts have failed.
A requirement that a servicer, in certain specific circumstances, allow a 30-day borrower response period following issuance of a Non-Approval Notice before a foreclosure sale may be conducted.
A requirement that a servicer provide a written certification to the foreclosure attorney or trustee stating that a borrower is not HAMP-eligible before a foreclosure sale may be conducted.
A requirement that servicers must consider borrowers in active bankruptcy for HAMP if a request is received from the borrower, borrower’s counsel or bankruptcy trustee.
Clarification of the requirement that servicers use reasonable efforts to obtain approval from investors to participate in HAMP.
This Supplemental Directive provides guidance to servicers of first lien mortgage loans that are not owned or guaranteed by Fannie Mae or Freddie Mac (Non-GSE Mortgages). Servicers of first lien mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac should refer to the related HAMP guidelines issued by the applicable GSE.
Matthew 21:22 and all — as much as ye may ask in the prayer, believing, ye shall receive.’
Expect Miracles,
Anna Cuevas
Loan Mod Guru
Hi Anna,
Great Web site
What if my debt/income ratio is 89%.
Debt $4,800
Gross Income $5,400
Can a high Debt/Income ratio hurt your chances of getting a loan modification from a Mortgage company opposed to a Debt/Income ratio of 60%.
I need to figure why after my 3 month Trial Modification I was denied for a loan modification.
Hi Jim,
I am happy you like “our” site! WELCOME!
Well if your debt ratio is high they want you to get Credit Counseling by a HUD certified counselor – are you using all your household expenses or just your credit debt?
If you are applying for HAMP the most important thing to work on is the 5400 x 31% and work the HAMP calculations –
If you are doing an in-house type modification then most lenders use a net income vs total expenses for that type of modification and debt ratio is still not that big of a deal- so it just depends – I hope this helped to answer your question. Let me know.
Jesus said to his disciples, “Don’t be worried! Have faith in God and have faith in me.” John 14:1
Expect Miracles,
Anna Cuevas
Loan Mod Guru
Hi
My husband I both were laid off in Late 2009 and early 2010 respectively. Only 1 of us was eligible for unemployment so needless to say we could no longer make our $3,000 mortgage payment. We went to a loan mod company first – last summer – and that was a non-starter when they went out of business (shut down) when the new California law about money up front was passed. So in the fall I contacted B of A to ask for a solution. They offered me a trail modification from Dec-March 2010. The proposed trial payment was $3,000. In January I got a job and in Feb I got my first check and wrote them a letter asking for the trial mod to start at that time. They ignored my letter and despite making no payments under the trial program sent me another letter asking for my financial information. I sent it in roughly April 9. Two days ago I got a letter saying my loan modification is denied. I don’t have it in front of me but I think it said it was denied because I didn’t make any trial payments. The letter said if I contact them by May 5, they will forestall foreclosure proceedings until another alternative is decided upon (short sale or deed in lieu) . I am in a position now to pay my mortgage and I still want to save my house. I have not received a default notice or threaten to foreclosure other then the loan mod paperwork. I still receive monthly coupons asking for my monthly payment. The statements show my unpaid balance as well. I want to just begin making my regular monthly payment. It is better to pay them and have a write off then pay rent – still. I am only afraid that they will “suspense” the money, not credit it to the loan and start foreclosure process anyway. I have to contact them by the 5th. Should I ask again for a loan mod and hopefully start the trial process over and hope for a better result if I am paying? Do you think if I just start paying it will delay the foreclosure process anyway and either they will talk to me about a repayment plan for the past amount or even buy time until the suspense account is big enough to reinstate the loan? Any thoughts? I have been in the new home and mortgage business and this is the most logical solution to me, but right now lord knows logic just doesn’t always enter into with the personnel at the banks
Thanks
Hi Anna
I think I may have posted in the wrong section. I do think I was denied for HAMP however I think it was because I did not make any trial mod payments (they were completely unaffordable) Thank you for replying – here is the info you asked for.
Mortgage Balance
B of A $504,000
How many payments are you behind 14
Current Value – $448,604
Current Payment $3089
Lender Bank of America
Investor if you know who it is was Countrywide don’t know if held by investor
Total GROSS income $90,000
Monthly Property Tax $551 (impounded – however property tax was reduced during non-payment status and payment not adjusted – so I assume the escrow account is also a mess)
Monthly Homeowners Insurance 89 (not impounded)
Monthly HOA (if you have this) NONE
I was granted a loan mod in 12/2008 to offset a mortgage reset (I was given my original interest only rate for another 5 yrs – interest only) Both my husband and I lost our jobs and the value of our home went down so we applied again in 2009 through a loan mod company that took our money – we started working directly with B of A again in the late fall of 2009 and just received our denial (see previous post for more details). I really want another trial mod under the HAMP or just to begin making payments to show good faith – I am slightly afraid that the payments will be suspensed and they will still foreclose – was hoping someone had some insight.
You are doing an amazing thing helping people – thank you!
I applied for Hamp 3 times with Indymac, after hours of phone calls and resubmitting same paperwork and documents over and over, finally on the third time approved for trial modification. Trial mod started first payment due on Oct 2009. It is now May and I have made my 7th trial period. I followup,once a week and they tell me the same thing,” I am in active review, all my paperwork is up to date and I have been sent to a supervisor because it has taken longer then usual.When I called yesterday they told me I should be getting an approval/denial by May 16. Is there anything else I can do? How does this sound to you? I am on pins and needles!
Hello Heather,
I am always the type to believe that no news is good news at this point. Is the trial payment affordable? Believe only that you will get a congratulations letter! Many other people that I know of that were first denied have reapplied and then gotten approved – so ONLY believe that you will be approved, patience is a virtue – many times people want to rush this only to find out that better programs were in the works – I will be here for you!!!
Do not be afraid of tomorrow; for God is already there. ~Author Unknown
During the Sermon on the Mount Jesus tells us not to worry, Matthew 6:25-34. In this passage three times Jesus tells his disciples not to be anxious, not to worry.
Worry is Futile
Matthew 6:25-27 “Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more important than food, and the body more important than clothes? Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? Who of you by worrying can add a single hour to his life?
Worry is empty and gets you nowhere. We need to learn to trust God. He gave us our life and he will sustain it. An example is the birds of the air. Birds don’t plant any crops. Birds do not store any food in barns or silos. Birds do not shop at supermarkets and they don’t use refrigerators or freezers. Each new day they must hunt and gather food, yet they don’t seem to worry. They are up every morning singing joyfully.
Can you imagine a scene in the bird nest where Momma Bird asks Papa Bird, What’s wrong Papa why aren’t you sleeping?
Papa bird says, “I’m worried. We have three newly hatched chicks in the nest. How can I sleep when I do not know what we will do if I can’t find any worms tomorrow?
Matthew 6:26 says, Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them
The term used for a having a “nest egg” stored did not come from the birds. They do not store anything. God takes care of them each day. Be like the birds and “Don’t Worry be Happy” (blessed).
Jesus cares for the birds, how much more for you? You were made in the image of God. You were created with purpose and not hapless chance. God designed you and has a special purpose and plan for you.
One man worried so much that when he went to the dentist that he left his car in a no parking zone, so he could worry about not getting a ticket, and take his mind off worrying about the dentist visit.
Worry is futile because it doesn’t change anything. You can’t lengthen your life through worry. If anything doctors will tell you it would shorten your life. Worry produces no profitable results. God knows the need.
There are two things you should never worry about:
1. things you can’t change
2. things you can change
EXPECT ONLY MIRACLES,
Anna Cuevas
Loan Mod Guru
Matthew 6:25-27 is one of my favorite verses. Thank you! I am not going to worry anymore. I am only going to think positive! Law of Attraction. Yes, the trial mod is affordable. My original loan was for 1,786.00 a month without taxes and insurance, since I have been in the Hamp program , Indymac paid out all my delinquent taxes and property insurance, so my new loan amount is now 2,300. My trial mod is for 1,343.00 which we have been handling very comfortably for the last 7 months. The 2300 will be very hard to pay, but it is the back payments we owe that we will have a hard time coming up .
I will not worry anymore <3
Heather when you get approved you will not have to come up with the back payments – they will be put onto the loan – I also LOVE Matthew 6:25-27 did you know he was a collector? a tax collector – telling you NOT to worry!!!
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru
Thank You Anna for the prayers, Matthew 6:25-27 is one of my favorite verses in the bible! It is out of my hands for now! I called again and they said I should get an answer by May 16. My birthday is May 17, so I am hoping this will be the best birthday ever. No more worries!!
My original mortgage payment was 1, 786.00 , with no escrow. We are 4 months behind on our mortgage, we have received default papers but are not in forclosure! After we were approved for Hamp trial, they paid all our property taxes that were past due and our property insurance, which a made our monthly payment 2,300.00 a month. Our trial payment is 1,343.00 a month which we have been paying very comfortably the last 7 months. We have over 1,400.00 in late charges! I AM GOING TO GET A CONGRATULATIONS LETTER!!!
Heather! I am so happy to hear your new outlook
I will be anxiously awaiting your success story – and I hope you have the most happiest of Birthdays! Call in the Holy Spirit – he is waiting for you, so he can guide your every move 
PS God is crazy in love with you!
Matthew 9:28 When he had come into the house, the blind men came to him. Jesus said to them, “Do you Believe that I am able to do this?” They told him, “Yes, Lord.”
Expecting your miracle!
Anna Cuevas
The Loan Mod Guru
Hi Anna-
So glad I found your site. I have been going at this since last August with Chase and last week was told we were denied becuase of NPV failure. I request the numbers that were used to determine the outcome. Some of the factors were not what we had sent in via the RMA form we submitted. We cut the majority of our expenses and have seen some increase in income. Here are some of the detailes.
Chase Loan
unpaid balance $508,391.61
interest rate 6.625% (was 5.00%)
principal and interest $3,459.60
Esscrow $791.34 (insurance $46.58, tax $564.82) $179.94 esscrow balance
income
Wife paid once a month $3,180 (gross)
Me bi weekly $3,000
I averaged out bounus $477 (gross)
Expenses
$4,250.94 mortgage
$248 car payment (3 payments left)
$1,500 food, utilities, cell phone
$1,000 credit card
Total income $9,657
Total expense $6,998
W2′s for 2009 total gross income $117,154
Here is what the letter said
Balance $508,391.61
rate 6.625%
months delinquent 5 months
principal $3459.60
insurance $46.58
taxes $564.82
gross income $9,496.17
monthly obligations $4,586.57
State CA
They didn’t list the property value, but I asked when I called in and they said $422k was used.
Not sure why they didnt use all our expenses and why the past due payments of $17,003 is not included.
please let know if what we should do next.
Thanks and God bless!
Sorry Anna-
The vaule the gave the property was $442K.
Thanks
Hi Tony:
I am so glad you found “our” site too!!! This is really bizarre, it does not make any sense that you have been denied for NPV – do you have an actual letter that says you were denied for HAMP for NPV?
Your expenses are not used for HAMP –
9496.17 x 31% = 2943.81 – tax 564.82 and ins 46.58 = 2332.41
now even if they lowered your rate to 3.67 and extend the term to 30 years to get you to 31% would still be more profitable 508k then a foreclosure @ 442k
There has to be some sort of mistake – did you have lates before in your history with them? I think there is a mistake you should just fill out a new package and resubmit the whole thing again and get a whole new negotiator.
Here are the HAMP application forms
John 14:29 Now I have told you before it happens so that, when it happens, you may Believe.
Expect Miracles,
Anna Cuevas
The Loan Mod Guru
Hi Anna!
Thanks for the reply, yes the letter says “MHA” program and references the NPV data used to determine not eligible. Does it matter that I get paid bi monthly and my wife gets paid once a month? Also, it says to send in any documents that show the values used are incorrect and they will re run the NPV test, should we do this or ask to reapply? Will they let us reapply?
Thank you for all the wonderful information and hope.
Tony
Tony – I think I would challenge it – send in the higher income – and tell them they used the wrong amount – and also that you think the NPV test has a glitch and is wrongly negative – escalate it.
Then if not:
Let them close out the file. Then I would re-apply with the RMA application – and start fresh.
Put in the corrected income which is a little higher and go with that to reapply. If you can find lower comparables to your home and submit with the file.
“Ask, and it will be given to you; seek, and you will find; knock, and it will be opened to you. For everyone who asks receives, and he who seeks finds, and to him who knocks it will be opened. (Matthew 7:7-8 NKJV)
ps watch this THE STRANGEST SECRET
Expect ONLY Miracles,
Anna Cuevas
http://www.theloanmodguru.com
Hi Anna!
I just FedEx in all the income info and a short letter stating what you suggested. I also tried to get the Executive Resolution Team at Chase to escalate my loan. It shows it was signed for this morning, now we just wait to here from the ER team. I will give Chase a call tomorrow to confirm with them the receipt of my updated docs.
We will continue to hope and stay positive. But most importantly we will continue to pray.
Thanks,
Tony
Hello Tony!! Please keep me posted, I want to know what happens, I am right here if you need me –
“Ask, and it will be given to you; seek, and you will find; knock, and it will be opened to you. For everyone who asks receives, and he who seeks finds, and to him who knocks it will be opened. (Matthew 7:7-8 NKJV)
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru
Yes on the lates question. We were 2 month behind when we started the process.
Hi Anna-
Just an update, I called yesterday to see what the status was. The person in the NPV department the I had called, said the the notes showed no new test run and we were approved for a MOD. He said he didn’t know what was going on and to Loss Mitigation, I did and got the run around for 30 minutes. After I hung up I decide to call the ER team and they said that we had a case open in that department, they were working on a Mod and it was waiting final approval. She read the terms and they were like 5.7%. I’m waiting for them to call me back, if not I will be calling closer to EOB today. I’ll let you know what happens as soon as I find out.
As always thanks for your help and direction. Reading your calming words helps up to just do that.
Thanks!
Hi Tony-
Thank you so much for updating us, I ALWAYS love to hear how things are going. I am excited to hear that things are coming around.
Keep calling in the Holy Spirit before you call, and ALWAYS always remember who you are!!
But without faith it is impossible to please Him, for he who comes to God must believe that He is, and that He is a rewarder of those who diligently seek Him. (Hebrews 11:6 NKJV)
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru
Hi Anna!
So we got the FedEx from Chase and I not happy. Here are the details of the modification.
Current unpaid balance $507,738.76
Interest $19,621.98
Escrow Advance $9,450.13
Recoverable balance $14.00
Less Credits $3,656.77
Total $533,168.10
Total new payment $3,493.35
interest rate 5.750%
balloon payment of $348,065.97
I’m going to call Chase tomorrow and ask for more details on why the NPV for the MHA program wasn’t ran again. Let me know what you think we should do.
Thanks!
Hi Tony!
Well, I guess at least it is a start. Keep fighting and getting information on why and what they gave you.
Check on the balloon payment is it a principal forbearance? or ?
How much is your property taxes and insurance again?
If you do what the Lord wants, he will make certain each step you take is sure. God is so amazing call in the Holy Spirit before you call Chase!
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Click here to learn more
Hi Anna!
Currently are escrow is $791.34 (insurance $46.58, tax $564.82) $179.94 escrow balance
New escrow is $652.16
I haven’t been able to talk to the rep a Chase, phone tag. I read the new docs and it was extended to 40 years. It also mentions MERS? Not sure what that is.
It’s says the Interest Bearing Principal will re-amortize over 480 months to a remaining scheduled balance on the maturity date of $348,065.97(the balloon payment).
We are confused and scared. It says we have to sign and return by 6/18/10 or it is voided and subject to foreclosure. We aren’t comfortable with these terms.
As always thanks for your wisdom and help.
GOD Bless!
Tony
Update.
I talked to Chase today and she said this was probably as good as the HAMP mod and this was a CHAMP. I told her about the NPV and she said she was going to look into it. I’m waiting to hear back from her. she said we run the risk of not getting anything at all, if we wait.
Hello Tony, I don’t know what your gross income is to help you navigate this and see what the HAMP would be like for you.
Are you able to send this information? Also, if your modification is not HAMP you are still able to reapply for it. Just so you know.
But the Helper, the Holy Spirit, whom the Father will send in My name, He will teach you all things, and bring to your remembrance all things that I said to you. Peace I leave with you, My peace I give to you; not as the world gives do I give to you. Let not your heart be troubled, neither let it be afraid. (John 14:26-27 NKJV)
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Hi Anna,
Just wanted your expert opinion. You know how I am going on my 8th trial payment due June 1. The times i followed up once week, i have been told my process is with investors and we should get an answer by May 16. Now when I called yesterday, they are telling me it could be another 30 days. What should I do? Should I just wait and continue to be patient or start emailing higher ups, OTC office…etc?
Hi Heather – are you still worrying silly gal? I KNOW its hard, but try to enjoy your life meanwhile
just a little –
I think if your trial payment is good and you are not denied or in any jeopardy, enjoy your lower payment, just check once a week and if after the 30 days they said it might be then we can come up with a plan to take it to the next level. But have a GREAT memorial day and we will take up the fight if necessary, I will be right here to guide you.
Matthew 6:25-27 “Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more important than food, and the body more important than clothes? Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? Who of you by worrying can add a single hour to his life?
Worry is empty and gets you nowhere. We need to learn to trust God. He gave us our life and he will sustain it. An example is the birds of the air. Birds don’t plant any crops. Birds do not store any food in barns or silos. Birds do not shop at supermarkets and they don’t use refrigerators or freezers. Each new day they must hunt and gather food, yet they don’t seem to worry. They are up every morning singing joyfully.
Can you imagine a scene in the bird nest where Momma Bird asks Papa Bird, What’s wrong Papa why aren’t you sleeping?
Papa bird says, “I’m worried. We have three newly hatched chicks in the nest. How can I sleep when I do not know what we will do if I can’t find any worms tomorrow?
Matthew 6:26 says, Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them
The term used for a having a “nest egg” stored did not come from the birds. They do not store anything. God takes care of them each day. Be like the birds and “Don’t Worry be Happy” (blessed).
Jesus cares for the birds, how much more for you?
Expect ONLY Miracles, AND BELIEVE
Anna Cuevas
http://www.theloanmodguru.com
gracias…..
Hi Anna,
I’m new to your site & plan to spend the next few hours reading up on here, but wanted to get your thoughts.
Last July 2009, my husband received a 15% pay cut AND a 10 hour per week reduction of hours. We had already been just barely making it so, when this blow came, there was no more denying it. Within 2 days I had gathered paperwork and submitted HAMP application to our mortgage company citing imminent default. Taylor, Bean & Whitaker refused to work with us–refused to even transfer our call to loss mitigation–until we were in default. So, July was our last payment and we hired a 3rd party negotiator in September and that seemed to finally get through to our lender. However, T,B,&W went under shortly after and our loan has been sold twice since, making this process even longer.
Our current mortgage payment is $2012. My husbands new monthly pay is a little more than $3000.
In January, we received trial mod paperwork from Ocwen, however, the trial amount was for $1809.03–through HAMP. But, still we had been approved for the trial.
In the first place, I didn’t understand how this could be possible since it clearly couldn’t have been based off of the program’s calculations. We politely rejected it and asked to re-negotiate closer to the 31% number we had been calculating.
Last week, we received a denial for the HAMP program citing this and only this reason:
“We are unable to offer you a Home Affordable Modification because: We are unable to create an affordable payment equal to 31% of your reported monthly gross income without changing the terms of your loan beyond the requirements of the program.”
When our negotiator spoke with the lender, they cited the reason for denial as such that we continued to be current on our credit card payments and my student loan.
So, I’m just confused all around. In January we were approved, but in May we don’t qualify? And what’s with the differing reasons?
What are your thoughts on our next steps?
Thank you for your time,
Sincerely,
Krista
Hi Krista,
I am sorry to hear about all of your tribulations – Lets work on getting you approved! I think that they probably used a different income amount the first time – probably your old income-
With the new income with the 3000 x 31% is $930 and – taxes and insurance that could leave a really low amount for the mortgage payment.
Hamp calculation article – I also offer a PERSONALIZED HAMP CALCULATION DOCUMENT SERVICE I am here for you, let me know how I can serve you!!
“Ask, and it will be given to you; seek, and you will find; knock, and it will be opened to you. For everyone who asks receives, and he who seeks finds, and to him who knocks it will be opened. (Matthew 7:7-8 NKJV)
You keep late hours, Anna!
Thanks for your quick response.
Krista
I am at an intensive conference/training 6am to 12am for 10 days!!!
and I can’t forget about my people here on the site
Blessings and Light to you – good night – ps GO TO SLEEP TOO !!!
Whew! That’s a LONG day. But thanks for not forgetting about us. Sounds like you are indeed a blessing to many here! During a scary and confusing time, it’s nice to know someone is here with encouraging words and sound knowledge.
Believe me…I’ve tried going to sleep, but my mind is racing. I don’t know what we’re to do from here…. I’m so overwhelmed. I’ll try going to bed again….soon.
Krista – I want you to take a deep breath, you are going to do this! Get me all of your numbers and I will help you Everything happens for a reason and many times with just a little patience better opportunities come up, so in this case you just have to know your file inside and out so you can make the necessary changes and resubmit – B E L I E V E – and you will get this done- Call in the Holy Spirit! It works – Just so you know if God can cure my cancer – he can for sure get a loan modification done – You can definitely reapply just get your numbers in line
Prayer to the Holy Spirit
O Holy Spirit, Soul of my soul, I adore You. Enlighten, guide, strengthen and console me. Tell me what I ought to do and command me to do it. I promise to be submissive in everything that You permit to happen to me, only show me what is Your will.
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru
Thank you! I needed that prayer…….in a bad way, too!
Here’s our numbers:
Mortgage Balance: 324,795
10 months behind on payments
Current value: approx 230,000
Current payment: 2012
Lender: Ocwen
Investor: Freddie Mac
Gross Income: 3570/month
Property tax: 412/month
HOA: 246/month (insurance included)
Debts: credit cards = 2156.00 total (monthly min. = 68)
Sallie Mae student loan = 12,041 total ( 121/month)
* We also have a 2nd with CitiMortgage that is currently 436/month; we stopped paying on that 10 months ago as well.
Hope you have a great day tomorrow & that you’re not too sleep deprived! Thanks!
Just remembered this favorite quote of mine:
“Courage doesn’t always roar. Sometimes courage is the little voice at the end of the day that says I’ll try again tomorrow.” — Mary Anne Radmacher
How apropos. Thank you, Holy Spirit.
Hi Anna, I emailed you a couple of days ago and now understand you’re at a conference. Wow! very long days for you! I love conferences and understand the energy they have and use. If you find time to get back to me that would be great. I need to contact my servicer by Friday… If not, I completely understand:) I’ll continue to stay in contact and thank you again for the information on this website. I’ve learned so much here and couldn’t find anyone else knowledgeable to find out about the HAMP program from!
Also, if you reply, how do I best find the post?
Thanks, Shelly
Hi Anna,
Being self-employed our income fluctuates but here are our numbers right now:
Mortgage balance: 195,582
Value: 331,000
Monthly Payment 1,664
Property tax 323.17
Insurance 126.50
Gross income 5,870
The lender is Select Portfolio Servicing. This is our time applying as we failed the first time due to lack of income (at 4,519).
If you can let me know how this looks, I’d greatly appreciate it.
Thank you so much,
Shelly
Hello Shelly,
SPS has not been very forth coming or helpful to us, and if anything, their motive seems to lend itself to foreclosure as their best choice… hope you are having better luck!
Sharon
Hello Sharon,
I am sorry you have been having such a difficult time with SPS I know how frustrating it can be navigating all of the red tape and politics at the servicer. Call in the Holy Spirit for guidance and inner peace.
My suggestion is to first know your numbers forwards and backwards – this is crucial.
Next write a detailed letter to:
Matt L. Hollingsworth, President
Select Portfolio Services
3815 South West Temple
Salt Lake City UT 84115
I hope this helps.
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru
– Breaking News “Due to numerous requests for more help: I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Hi Anna,
Here is a scenerio that I would like to hear your expert advice. The bank ran the initial NPV test and I passed. So they put me into trial payments. When I finish making all the trial payments, I believe the Bank will run another NPV test before granting me the permanent mod. At this time the UPB will be larger because it will include all the missed payments. If I fail the NPV test because of this large UPB, What are my other options? I feel like I am chasing my own tail here. Thanks
Hi Simon,
As long as they ran the NPV test in the beginning they are supposed to run the same NPV test. I do not forsee you failing unless they did not originally really run the NPV test, sometimes they don’t or if your income has changed.
I am here for you if you need it.
Trust in the LORD with all your heart, And lean not on your own understanding; In all your ways acknowledge Him, And He shall direct your paths. (Proverbs 3:5-6 NKJV)
Expect Miracles,
Anna Cuevas
The Loan Mod Guru
Anna,
Does going BK effect any potential loan mod……..? Would you exculde these as expenses on HAMP worksheet even though BK wasn’t final even though you stopped paying the bills?
Thanks,
JT
Jeff,
When you first file the BK it does confuse things just a bit during that initial process, but with the latest guidelines to HAMP it will not stop you from obtaining a modification so that is good news. I would not include those debts into the HAMP Worksheet, but I would include the explanation of why into your hardship letter.
Trust in the LORD with all your heart, And lean not on your own understanding; In all your ways acknowledge Him, And He shall direct your paths. (Proverbs 3:5-6 NKJV)
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru
I was denied HAMP after I went through the 3 month trial just fine. They told me I didn’t meet the qualifications, but good news! I qualify for an in house mod!!Now I am waiting for another 30+ days for that. Question: I never got a formal letter in the mail stating why I got denied H.A. M. P.or my NPV when I called and asked for it specifically! Isn’t that illegal? And how much do they get from the gov’t just to run me through the process?
Anna,
Maybe you can point me in the right direction with this NPV test. I’ve requested the information that they inputted but need to know what to watch out for. We were trying to get the HAMP program do to a loss of income.
Current Loan Balance: 330,744 monthly payment = 2,070.38
Current Value: $275K per zillow
Current Income: 6,000 (verified with 5 months of bank statements – self employed and tax returns show less income though.)
Received the pre-approval, made 4 months of modification payments at 1,859.99. In which BAO rep said that we had good chances if we made it this far.
Also, we were current on the mtg. until making the modification payments but knew we weren’t going to last much longer with out a little help.
Received notice today we have been declined because of negative NPV test. Do you think they are entering wrong income values or home value? How much underwater are they looking for?
Thanks for any help you may have.
Dina,
The best thing you can do is call the lender, who is the lender? and have them go line by line on what income they used and all of the numbers including the value of the home they used.
then you need to go over your numbers and double check if they are using the right numbers. Did you provide a profit and loss? they use the net of the profit and loss after the business expenses.
Here is an article on HAMP NPV TEST
They make mistakes on the numbers all the time.
Now this is the confidence that we have in Him, that if we ask anything according to His will, He hears us. And if we know that He hears us, whatever we ask, we know that we have the petitions that we have asked of Him. (1 John 5:14-15 NKJV)
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru
Requested the info that was used in determination. Advised that response would be received w/in 10 days from negotiator to discuss test and additional modifications available, if any. No calls received. Called again after elapsed time. Advised would receive a letter w/in 7 days. 7 calender days have passed. Tomorrow will be 7 business days. Calling again if still no response. Are they in any violation by not responding?
Hello Dina,
The best thing is to escalate to a manager and let them know you are being told one thing and they are not following through with promises, you should also send a letter to Sigtarp, Phyllis Caldwell at The Treasury, your congress person and the FDIC – but this will be so we can help put an end to this insane lack of compliance. Are you Fannie Mae or Freddie Mac? If you are you can send them a copy too. Don’t forget to call in the Holy Spirit – I to have to do this because otherwise I would go crazy.
“And this is the confidence that we have in him, that, if we ask any thing according to his will, he heareth us: And if we know that he hear us, whatsoever we ask, we know that we have the petitions that we desired of him.” – 1 John 5:14-15 KJV
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Anna,
Still never received any info on NPV test. Had to call again and of course received the typical apologies and excuses, their behind. The last rep. that I spoke to said that she spoke with her manager and something will be mailed out but to allow for the Holiday weekend (4th of July). Well, I got a letter. Nothing to do with the NPV test though. The letter says there is no modification for me and my options are to foreclose or a deed in-lieu. I got the letter pretty quickly and it feels as if they sent what they needed to get me off their back. Now what?
help please we are after 12 month of trial modifications becasuse NPV DO WE HAVE CHANCE OR WE ARE ONTO FIGTH, GOD IS OUR PROVIDER PLEASE HELP.
Hello Omar,
You do have a chance – You need to KNOW your numbers – do the calculations on all my articles, you can come through this! Get empowered with knowledge and fight!!!
“And this is the confidence that we have in him, that, if we ask any thing according to his will, he heareth us: And if we know that he hear us, whatsoever we ask, we know that we have the petitions that we desired of him.” – 1 John 5:14-15 KJV
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Anna,
Thanks for doing all of this. It seems to be helping a lot for real people’s situations.
We was denied after 10 months in the HAMP trial period.
The person on the phone used the phrase “immediate default” and said something like “you must have a cash reserve,” and “liquefiable assets.” He also mentioned the figure of three times the full monthly payment as being the threshold.
We have a very quickly dwindling savings account. I’d hate to see it go to zero, but that’s where it would go if we paid up for the ten months we were on the program.
(And we don’t seem to be able to obtain credit because of our participation in this program.)
I have two questions.
1. Is it legitimate for the servicer to deny person’s having a savings account with over three times the full monthly payment?
2. Is there anything more that you think we could do to obtain the HAMP modification?
Jeff, You are so very welcome. I wholeheartedly appreciate your kind words.
The representative probably mentioned imminent default. Since you are not late on your mortgage you have to pass the imminent default test.
Here is an article that I wrote that has this information on the HAMP imminent Default Test as well as your question about money in the bank. I hope this helps to clarify what that means.
My suggestion at this point would be to reapply once your savings hits below that amount. Since the program is meant for people in trouble, unfortunately those are the ways they measure how much in trouble you are. I completely feel your pain, and wish I had a better answer for you.
Mark 9:23 Jesus said to him, “If you can Believe, all things are possible to him who Believes.”
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Anna,
HELP. Not only did I get denied under HAMP by ocwen, but now I get a letter forNPV failure and to add insult to injury, Ocwen just sent me a letter of agreement putting me in a plan that worsens my situation. Please help me figure out what I can do for ocwen to help me. I live in California and My hours have been cut in half; my wife and daughter have taken up the slack to help with the monthly income. I first stared with Saxon asking for a loan modificaiton; they jerked me around for 18 months and then switched me to Ocwen 2 months ago. now i have to start all over again. Here is my nightmare: I have a convention ARM loan
Notice from ocwen: Based on program guidelines, your loan failed net present value test as established by the government rules:
Unpaid bal: 349,340.50; interest rate before mod as of 6/10/10 – 6.4000; months deliquent 20; next ARM set 6.4; PI before loan mod 2233.06;monthly insurance 66.43; real estate taxes 388.72; monthly gross income 3,340 (actual gross is 4,926); fico score 601; califorina.
THeysent me a new proposed modification agreemen: pi – 2353; escrow pymt 425.85; total amt: 2,778.85.
Help me Anna. This is way more than I was already paying
I pay my own insruance payment of $66.00 but they say theiy do.
After reading yourf articles you say find out exactly why my HAMp was denied: I was told this afternon that the investor (Capital Trust) say I was denied a HAMP because i have too much equity in my probperty. How cna that be? I checked your eppiprasal and my house is worth about 248,000,
I am frustrated confused and down and out. My hed hurts from trying to figure all of this stuff out. What does too much equity have do with HAMP?
we pray everyday for a solutione.
thank ;you.
Isidro,
I am sorry to hear about all of your frustrations with Saxon and now Ocwen Loan Modification request.
The first thing I would say is to put it in writing – request that they explain every NPV input that was used. What value they have for your property, what gross income they have for you etc. There is a copy of a letter sample on this site. I think your gross income is very close for a HAMP modification so I would first verify that they used the right numbers. Call in the Holy Spirit to guide you as you make the phone call and ask, and as you write the letter, ask for you and ask for them.
Don’t let it frustrate you, they may tell you they can’t give you the information when you call, this is typical, call again talk to someone else, AND send it in writing! per HAMP guidelines if you ask you have the right to know – stay on your dates to make sure no other action is going on without you knowing – you are the captain of this ship!
Too much equity just lets them know what is more profitable, selling your home or modifying your loan – you just have to show that modifying it is more profitable – I will help you just first ask the questions before you take the next steps, many times there are mistakes.
You can do this – you are so close, put on your gloves, say some prayers, believe you can do this and you will!
Do you not know? Have you not heard? The Lord is the everlasting God, the Creator of the ends of the earth. He will not grow tired or weary, and his understanding no one can fathom. He gives strength to the weary and increases the power of the weak.
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
I wonder if I might ask another question. Thanks again for helping everyone here.
CitiMortgage wants us to pay more money after failing than we would have paid if we had never entered the HAMP program. We should be at around $7,000 behind. ($700 approx. reduction per month for 10 months.) But they want $11,000. When I questioned the gentleman on the phone his reply was that it was interest. This feels like extortion.
Should I fight them on this? How would you recommend going about that?
Hello: Terrific site.
I just turned age 66. Can I be forced to collect my social security? I want to get a HAMP. I have a judgment against me for 14000 credit card debt.
Will this negatively affect my HAMP qualifications?
Income is 2000 per month gross. Mortgage is 1035 piti.
2 months behind in payments. Credit is poor.
1st mortgage is 210,000. 2nd mortgage is 56,000. House value per Zillow is 168,000. Only expenses are utilities and food. HOA is 60 per month. Citimortgage is my lender.
Laid off in2009 for 1 year. Now working for 1/2 income that I once had.
Does NPV look great? Do you think I can qualify for a HAMP? Have not applied yet, but I will next week.
Hey Anna, I’ve writen before and you’ve helped keep my spirits up. I had my loan mod denied for NPV from Chase. I read on The Help For Homeowners website and your website of course that one should find out specific details about the NPV numbers when one gets that letter. I agree!. What do you do if the bank just won’t give me any details?. All they’ll say is denied for lack of income but all I want to know is how short in income am I, so I can maybe come up with it. If I knew that,then I could see if there’s something I can do to make up the difference? They,Chase says “they never give out that information”. How can I get the details as you say which makes prefect sense on how short in income I am if they won’t tell me? Doesn’t make any sense. Incidentally just curious why my income was just fine for a year as they took took 8 trial payments? Something stinks hear..Any suggestions. They just won’t tell me! Also is The Help For Homeoners of any value at all.. Thanks Anna Dave,
Hi Anna and Dave,
I too had a Chase loan. Did Anna reply to your question because I didn’t see it? I was in a trial mod that exp. 3/31/10. I was denied on 3/17 neg. NPVk. and received denial ltr 4/26. I sent letter to bank disputing numbers and instead of a reply the recorded NOD. That is when the bank stopped treating me like a person. My house sold on 10/22 and now I am squatting wait for the Marshal to help me move my three bedroom, 1 basement and 1 garage with a pool table in it to the front yard so that I don’t have to. I am in shock how this HAMP programs work. It is a shame how we little people are being treated. I have congress, FTC.OCC and AG Brown’s office helping but Chase keeps lying and doing whatever they want. They do not listen. My mod request started in 03/09 and there are so many changes in Supp. Directives that I really don’t think anyone knows what is going on. I just want my all my NPV data to see what they did. If I passed the NPV in 11/09 why did I fail now without a chance to correct it?
I am exhausted and I have lost faith in America and I don’t there is equal justice. There is money and no money. God Bless America, me, Anna, Dave and all the other people that are trusting in the MHA Program to give keep the roofs over our heads. If, Congress, FTC/OCC and AG Brown’s office can’t help me, I will left homeless.
Dear Anna , Why won’t Chase bank give me any details on my NPV numbers so I know how short in income I ‘am. They say they never give that out. Just said denied for lack of income. If I knew how much I COULD WORK WITH THAT! thanks Anna
Hi Dave, I must have missed your post. I am so sorry. It gets busy.
Tmrw I will get you a phone number to get your NPV numbers.
Anna
Dear Anna, I’m in strange situation. I have gone through the trial payment plan on my HAMP mod, made the 4th payment this month. The servicer AHMSI, is not saying that I’m being denied, in fact they told me that my NPV test was positive. But they are saying that they are running some other test, which is failing, and they are trying to fix it. This has been going on for the past 6 weeks!! Any ideas?
Kind regards,
Vlad.
Anna:
Curious when you get to sleep with all the hard work you put into this site. After a brutal 2009/10 of dealing w/my wife’s breast cancer and the economy things are looking up. We are 7 months into the HAMP process w/BOA. We are past underwriting and likely being put through the NPV test which I fear we will fail due to income inputs that are not accurate as I receive a very substantial year end bonus not included in the pay stubs they requested. Our data:
* 701,000 original @ 5.75 fixed
* 644,000 balance
* 2 months behind
* 4087 interest & principle + 900 taxes etc…
* 725,000 assessed value by county for taxes
* $8,800 gross monthly base income
* $50,000 gross annual bonus not include in NPV inputs (due 4/1/11)
I have crunched this through the old FDIC NPV test and we only pass when my income hits 10,700 a month. Any insights or commentary that might help our family (2 young kids and a now healthy wife).
Much appreciated from the Washington, DC area.
Jerry,
Thank you for the kind words, I often wonder myself, lol, but I do feel divinely inspired to get this information out to people. I am so sorry to hear about your wife and what she went through, I understand as I had ovarian cancer, so I know what you must have gone through as well as what she must have been feeling, and maybe still is. This coupled with this journey of HAMP loan modification does not make it any easier. They may have already done the NPV test – Believe that it will happen. B of A has a pretty great inhouse program as well. I like it! Believe that it will be approved!!! “Four things for success: work and pray, think and believe.” Norman Vincent Peale
Its tough to tell with only the figures you gave me here – you need to make sure that you cover your full balance and take the 2% rate and 40 year term extension when figuring out how close your are – you MUST also know what value they are using or else be sure to cover the balance. If you get stuck, my LOAN MOD GURU system online crunches all of the numbers and offers an NPV test as well as dti and possible forbearance and bank costs if they don’t modify your loan.
Please know that I am here to support you. Let me know if I could help. Check out the home page askaloanmodguru
Expect ONLY Miracles and Question Authority,
Anna Cuevas
The Loan Mod Guru
Mortgage Balance – $259,000
How many payments are you behind – ZERO
Current Value – $226 from Zillow $214 from eppraisal and tax value from county is $256
Current Payment – $2400/mo.
Lender IBM Lendor business Process Services
Investor if you know who it is Fannie
Total GROSS income $50,000 before taxes
NOTE-all of the below fees are part of our $2400/month mortgage payment.
Monthly Property Tax $358.00 (4300/year)
Monthly Homeowners Insurance – $153.77/mo
Monthly HOA (if you have this) – none
We also have PMI insurance of $180/mo
we were denied the HEMP on Dec 19 by IBM Lender Business Process Services. They sent us a letter, but refused to give any details over the phone. They offerend us a forbearance Agreement which reduces our payment by $180.00 per month until April 2011. On the phone they told me they would reevaluate for an in houe loan mod program that could possibly take our interst rate down from 6.25% to 5% which is their “floor”.
We want the hemp which will reduce our interest to 2% and aour payment to 31% of my husband’s income. I’ve done all of the calculations on line and I know we qualifiy. We lost half of our income when I lost my job in April.
Also wondering if we should wait on sending in the forbearance Agreement. The papers say they need the back by Feb. 1, but on the phone they said we could send themin on Jan 1. I will wait until Feb 1 to send them, if we still need to.
Thank you so much for your help. WE had nowhere to turn until I found you!
Hello Anna,
I have just been denied for the secon time on HAMP through Wachovia. Reason was “Unable to creat an affordable payment equal to 31% of you reported monthly income without changing the terms of the loan beyond the requirements of the program.” I am in the pick a payment plan and paying the minimum of 1716. My monthly income 3772. insurance 40 and taxes 185. Property valued at 198000 on zwillow. I owe 366000. I tried to call my contact but was not in so talked to somebody else they could not pull up the numbers I submitted just to check them but he did explain to me I would need to increase my income by about 200.00 and I should qualify not a guarantee but he has seen enough to get an idea. Does that make sense? Also was denied MAP2 (which is in house Mod) due to not being in immenient default. because I make too much. He told me the in house mods have more of a stretch so need to make less money. Seems like i make too much for one program and not enough for the HAMP. Even though my home to income is 50%. Any ideas on what to do? Should I try and raise my income by getting a renter or try to work less overtime to send in two pay stubs so hopefully i can qualify for in house mod. Thank you
Hello Jose,
I know this process can be so confusing. In my opinion, the MAP loan modification program from Wachovia, however this program requires you to be at a 38% debt to income ratio prior to the modification to qualify. It is always a fine line you walk between programs, some you make to much some you make too little. It is important for you to know your financial picture so you can see some of what the bank sees. I am not sure how much surplus you are showing although that should not be the biggest factor. I would call again and ask why exactly they are denying you for not being in imminent default UNLESS of course you are not currently behind in your payments then I would read this article which explains imminent default. My vote with Wachovia is to push on the MAP program 100%. I hope this helps. If you get stuck check out my do it yourself center THE LOAN MOD GURU
“The name of the LORD is a strong tower;
the righteous run to it and are safe.”
Proverbs 18:10
Expect ONLY Miracles and Question Authority,
Anna Cuevas
The Loan Mod Gurua loan modification DO IT YOURSELF online system that can help you prepare a loan modification with a fighting chance for success!
Hi Anna,
I am SOOOOO Happy to have found your site…. I am near a nervous breakdown…. can’t sleep…. nervous…. you know the nerve-wrecking situation…
We have been attempting a Loan Mod w/Litton Loan since July 2009 when my husband’s work hrs were cutback. After repeatedly faxing over same information (updated as by the time they reviewed paystubs were outdated) they informed us we didn’t qualify for HAMP (due to monthly housing expense was less than or equal to 31% of gross monthly income of 4525.69), instead it was a approved for a non-hamp agreement which we received April 21. The income they had for us was INCORRECT, so we sent a letter stating it was incorrect and send 2 recent paystubs again for me and my husband (I am NOT on loan) by this time he was back on 40 hrs p/wk, I was switched to cash pay at work instead of laying me off (1600 p/m) but we had depleted our savings trying to make ends meet every month. The loan mod they approved us for was our EXACT SAME LOAN we had previous to applying for the loan mod…. so where was the modification there????????
We had a trial payment period of 1202 which we made all throughout the process (about 8 mos had elapsed already) and every pymt was on time. However the difference (in reduced pymts) as I came to learn is added every month.
They apparently never received my letter and the case was closed. I reapplied for another loan modification (in August) when I found out the previous case was closed. After repeatedly sending in documents, in October they denied the HAMP because they state they didn’t receive documents needed. Also In October I researched and wrote to the CEO and a few other people at Litton hoping to get someone’s attention. I also filed a complaint with TX Attorney General (where Litton is), my Attorney General’s Office (CA) and the Office of the Controller of the Currency.
Only by this time I was so fed up with all the stress of the calls etc. that my husband and I had problems in our marriage and I decided to leave. I moved in to one of the rooms and started paying him rent, (and of course to try to save what we could of our marriage)
I decided after speaking with my husband I would help him once more, and submitted another packet again at the end of October and The process started again and throughout this time we never stopped making a payment. This time I did not include my income as I stopped sharing my income with my husband (just pd rent). He provided the rental income and we drew up a rental contract.
December 17, 2010 (POSTMARKED 12/21/10!!) In December, we rec’d a letter where Litton was replying to the complaints we filed at the Office of Attorney General stating they had attempted to modify our loan but we refused and that in an effort to help us, THEY initiated a second review of loan for potential mod (LIES… WE reapplied) and they were waiting for an answer.
December 21, (Same date as above letter postmarked adressed to Atty Gen.) we receive a letter stating based on NPV calculation, the owner of our loan has not approved a mod. Per letter, Loan was also reviewed for non-Hamp but our loan does not meet the guidelines provided by the investor (????) They are unable to offer us an alternative workout solution at this time.
I called Litton and a rep told me I could continue making my regular pymts on time every month and reapply in 2-3 mos if our income changed… or any othe changes occur. I asked what about the amount we are behind (which we have been trailing as a result of difference in pymts reduced) which is near 10k and he sd they could work out a pymt plan, but target is to pay that amt in 18 mos, rarely do they stretch out to 24 mos….. so then I would hv regular pyment of 1521 + 400-500 to cover amt in default . He also suggested we send in any extra $ we can every month to try to cover this difference.
I have NO IDEA what we do now….. I am willing to contribute more (in rent) if this will save our home… we are trying to save our marriage as well at the same time and it is VERY stressing.
I will go ahead and per above comments request the NPV values, but I am also afraid they are UPSET at our complaints and will shut the door on us as a consequence of this.
Please advise what we can do… I am TERRIBLY sorry for such LONG story here… just trying to be as thorough as i can.
We currently have a 6.5%,
I went online to eppraisal and our home valued/worth $229,074.
We owe Principal 168,999.98
Monthly Payment is 1588.74
(P&I 1120.98, Escrow is 467.76)
Our taxes (I applied to have them reduced based on decline in value) are now 2,556.30
Insurance is $600
My husband’s income is 2041.86 (gross p/m)
I pay him $650 rent, which I am willing to up to $1,000 if that will increase our chances to get an approval and save our home)
So his total income per my last loan mod app was 2691.86
but our monthly expenses added up to 2651.37 (which i can perhaps lower a bit 200-300 as we cut a few expenses, i.e. cable, utilities lowered, gas for vehicles has been economized, etc)
Do I reply to the letter they addressed to both us and Atty General to clear up few points, or leave as is?
PLEASE PLEASE PLEASE PLEASE PLEASE PLEASE PLEASE PLEASE PLEASE PLEASE PLEASE PLEASE
Advise us on what we should do now… it’s been a VERY LONG ROCKY ROAD and to have come all this way in vain is SIMPLY UNACCEPTABLE!
Thank You… You have no idea what a blessing you have become!
Sorry, forgot to mention Total Home Value based on Tax Info Bill was 192,100 minues 7,000 exemption = Net taxable value is $185,100
I answered the questions you sent to me on 1/28.
I’ve been speaking with our loan servicer daily. I did get the calculations and the figures that they used to figure out if we qualify for the HAMP. our Debt to income ratio is at 55% and it neds to be 55% or under to qualifty. They said we could reapply if we can get that number under the 55% and provide them with a letter from our creditors stating the bills that we have paid off therefore eliminating payments (it adds up to over $250/molnth). Becasue our loan servicer only pulls credit reports every 6 months, we need to supply them with the letters.
The calculation they use for debt only includes the principle on the loan and the credit cards / loans listed on the credit report. Does this sound correct to you?
We’ve already paid off 3 small loans that we had which brings us down to 47%. Do you think we are ready to reapply now? I plan on providing them with the payff letters from our creditors along with a new of hardship explainaiton letter.
Hi Val,
I am glad to see they are working with you to make something happen. It sounds like they are doing an in-house modification that have different guidelines than HAMP? HAMP guidelines do not rule you out for a HAMP if your debt to income is above 55% they simply have to send you to required debt counseling. I do think with the changes you made to your debt you should be ready to reapply now based on the in-house modification debt to income (dti) ratio they provided to you, or if they are adding their own guideline over at IBM. When you are not behind they also do an imminent default test so you should do this test before resubmitting – the imminent default test – it is a fine line you walk when you are not late so you have to manage to many ratios.
I hope this helps. Keep us posted on your progress.
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru, a loan modification DO IT YOURSELF online system that can help you prepare a loan modification that gives you an edge and a fighting chance for success!
Hi Val,
I am glad to see they are working with you to make something happen. It sounds like they are doing an in-house modification that have different guidelines than HAMP? HAMP guidelines do not rule you out for a HAMP if your debt to income is above 55% they simply have to send you to required debt counseling. I do think with the changes you made to your debt you should be ready to reapply now based on the in-house modification debt to income (dti) ratio they provided to you, or if they are adding their own guideline over at IBM. When you are not behind they also do an imminent default test so you should do this test before resubmitting – the imminent default test – it is a fine line you walk when you are not late so you have to manage to many ratios.
I hope this helps. Keep us posted on your progress.
Expect ONLY Miracles and Question Authority,
Anna Cuevas
The Loan Mod Guru, a loan modification DO IT YOURSELF online system that can help you prepare a loan modification that gives you an edge and a fighting chance for success!
Anna,
Thanks so much for your quick response! I’ve made a spreadshee of the inniment default test that calculates and compares what IBM used and what our new figures are. I also have the same for the debt to income calculations. We plan on making sure we’re ready and will hopefully reapply in the next 2 weeks.
Are those the only two calculations we need to worry about?
I also want to send a letter explaining our hardship when I reapply, if you have any suggetions that would also be helpful Thanks Again! Your website helps give us more confidence. At first IBM told us we couldn’t reapply, but I found out here that we can!
Val,
You go girl!! I am so proud of your hard work. Imminent Default, ratios, covering your balance. Keep fighting and keep us posted how it goes. I will look forward to hearing about your success, call in the Holy Spirit for strength and guidance.
Expect ONLY Miracles and Question Authority,
Anna Cuevas
The Loan Mod Guru
Anna,
I’ve been looking at your website for awhile. I am at a serious impass . I’ve been fighting for 2 years to save both my home and the home of my mother in law who lost her husband,filed bankruptcy and was swindled out of $250,000 in a ponzi scheme. I’ve done all the right things, have two binders six inches thick of all documents, fax bank statements and documents when asked for and all that. I’m at point where I need to understand the NPV test and if I dont I cant save her home or mine. I can send you the details directly or post it here. Anything you can do to help would be appreciated. I’ve used your formula but it says she should pass but they are saying she has too much income. I’m almost in underwriting and have a feeling I’m soon going to be fighting the same battle for mine. Any help would be appreciated. I want to learn this too to help others once I get past mine and my mother in laws nightmare. Thanks so much.
Frank M
Oh by the way were both working with Chase, me Chase and her Chase/EMC.
Frank
i just got approved for the hamp program but I feared that the monthly payment will be to high for me. My gross income was calculated @ $10200.00 I owe original loan 328000. 00 with $268000.00 of penalty/arreage/ taxes/ lawyer fees etc.. Believe it I have been fighting for 60 months to get a loan modification.Do you think I can request for my monthly payment to be less than $2500.00/mth. My net is closer to $7400.00. I believe i will not be able to afford $3100++/monthly. Help me
Hi Anna!
I’m a single mom with two wonderful children. My ex-husband abandoned us four years ago. It took two years to get through the divorce, which occured two years ago. The decree indicates that 30months from the date of the divorce being final, that I had to get my ex’s name off the mortgage via refinancing, based on my agreement to stay in the home vs. selling; otherwise, I’m forced to put the house up for sale. Honestly, there were four reasons why I kept the house: 1. To maintain some sense of normalcy and stability for my children. 2. Because selling would mean being in an upside down loan due to the property value decreasing considerably. 3. After getting a better paying job, I could afford to finally pay the bills monthly (although not easy on one income now). 4. I took a step out on Faith believing that with God, “I can do ALL things who strengthen me.” Therefore, I refused to believe that I couldn’t do it.
The economy and property value has only worsened. Fortunately, Obama has enabled many folks through the Home Modification Programs available to save their homes. Well, I learned of this when it became available around October last year. I inquired with my mortgage company what to do, so that I could proceed with getting my ex’s name off the mortgage. They asked me to provide proof of the divorce decree, proof that the homeowner’s insurance was in my name, proof of the deed and explain my hardship (i.e.- 1. divorce and 2. Loss of income).
After doing all that, they sent me the paperwork to proceed. Yet, the catch was getting my husband to sign the Simple Assumption Form which would remove his name and allow me to go forward with the process in my own name. He, just for the sake of being difficult, has REFUSED to sign since November 15th, 2010. Yes, I have the right to take him back to court for contempt, as he’s hindering me from doing what I need to do to comply with what was agreed upon in our divorce decree. However, I can NOT afford attorney costs at this time. Doing so, would put me in a position to take payments from my bills. If I’m more than two months behind in my mortgage, I’m forced to sale my house.
I only have a few more months to make this happen and the enemy is still holding back on signing the simple assumption form. However, I spoke with someone from npvtest.org who said they could get me started with moving forward, but would eventually need for him to sign a form too.
My questions to you are:
1. Is npvtest.org a reputable company? Have you heard of them and what they do? 2. Is it normal to have to pay $495 for this program? I’ve heard that you shouldn’t have to pay a dime when doing a Home Loan Modification. 3. Even though I didn’t disclose my debt/income ratio, do you think based on my circumstances that I will be able to get this modification done within the next six months?
Lastly, I LOVE your website. It’s so refreshing and inspiring. I feel that while searching for information online, the Lord led me here. I prayed for trustworthy sources to gain an understanding and insight on how to proceed with my situation. Normally, I wouldn’t post ANYTHING publicly.
God bless and thanks in advance for your feedback!
Angel
I am so frustrated. I ahave been trying to get a loan mod for over 1 yr. I started with going through NACA and they submitted my paperwork to my lender (Wacovia) for some kind of loan mod. I was denied because I made too much money and I was not at risk of defaulting on my loan so they submitted my paperwork for a HAMP mod. I was denied because I did not make enough money. I am self employed so my income changes all the time. I submitted 3 more times and eash time I was told my income was not at the 31% level. Finally after the 4th time my income level was approved…now they said I was denied becasue of a negative NPV. I stopped making my house payments and I am now 5 months behind and I stopped making my credit card payments. I was under the impression that if my income was approved I would be approved for a HAMP mod. I was never told there were additonal steps after getting my income approved. I get the impression that because I have a little equity in my home they are not willing to approve me…they would rather take my home of 30 years.
What is my next step?
Thanks
Alan
Dear Anna,
I sent my lender the qualified written request that you sent us. This was after my HAMP was rejected for incomplete package.
I worked with the representative closely and then she disappeared. I was told that it doesn’t matter what I do, there is a note on my file to not accept any applications from me. This was a very annoyed rep and I am not sure she was supposed to tell me those things.
In any case, their answer to my written request was:
“These requests are not covered under RESPA, may be unavailable due to confidentiality, proprietary, and privilege restrictions:
Page 1 item 4
Page 2 item 12, 15-16
Page 2-3, items 21-27
Page3-31, 33-35″
Are they correct? If I don’t know the guidelines…how will I negotiate? The sale is on 4/12
Thank you (and I pasted the items below to make it easier)
4. Have you purchased and charged to the account any Vendor’s Single Interest Insurance?
12. The amount, if applicable, of any “satisfaction fees.”
15. A full and complete comprehensible definitional dictionary of all transaction codes and other similar terms used in the statements requested above.
16. A complete and itemized statement of any funds deposited in any post-petition suspension account(s) or corporate advance account(s), including, but not limited to, the balance in any such account or accounts and the nature, source and date of any and all funds deposited in such account or accounts.
21. A copy of any mortgage Pooling and Servicing Agreement and all Disclosure Statements provided to any Investors with respect to any mortgage-backed security trust or other special purpose vehicle related to the said Agreement and any and all Amendments and Supplements thereto.
22. If a copy of the Pooling and Servicing Agreement has been filed with the SEC, provide a copy of SEC Form 8k and the Prospectus Supplement, SEC Form 424b5.
23. The name, address and phone number of any Trustee under any pooling or servicing agreement related to this loan.
24. A copy of the Prospectus offered to investors in the trust.
25. Copies of all servicing, master servicing, sub-servicing, contingency servicing, special servicing, or back-up servicing agreements with respect to this account.
26. All written loss-mitigation rules and work-out procedures related to any defaults regarding this loan and similar loans.
27. The procedural manual used with respect to the servicing or sub-servicing of this loan.
31. A copy of the LSAMS Transaction History Report for the mortgage loan account, with a detailed description of all fee codes.
33. Is this mortgage part of a Mortgage Warehouse Loan? If so, then state the full name and address of the Lender and attach a copy of the Warehouse Loan Agreement.
34. Upon any default or notice of default, state whether or not the Mortgage Warehouse Lender has the right to override any servicers or sub-servicers and provide instructions directly to the Electronic Agent? If the answer is yes, then specifically identify the legal basis for such authority.
35. Is this mortgage part of a Whole Loan Sale Agreement? If the answer is yes, then state the name and address of the Purchaser, the Custodian, the Trustee, the Electronic Agent and any Servicer or Sub-Servicers.
Hi Anna:
I had been following your site for almost 2 years now. I had some advices I got from you when I was working with my Loan odification with Chase. Unfortunately, I did not have success in getting a Loan Modifcation with them. We were denied with HAMP and they gave us with their in house modification which is the CHAMP but the trial payment they were offering us was too high that there is no wy we can afford it.
Out house is in Short Sale Right now but we are still trying to see if there is still a possibility of re-applying for the Loan Modifcation since I am jobless at the moment. I got laid off 3 months ago and sill no able to get a job.
I was in touch with the Department of the Treasury, the Congress and the Senate and they were helping me follow up the status of our request previously.
What can we do, I would love to get yur services but we cannot afford to pay a one time fee.
Please help me and guide me what is the best route and best move we should do ASAP! Our house is in forclosure status, on hold due to short sale.
Thank you and God Bless!
hi, can someone please tell me what npv means? Is it the same as the market value of your home which is called an appraisel? tks
toni f
Hi Toni,
NPV is Net Present Value – these are the calculations the lender uses to see if it is in their best interest to modify your loan. There is a full explanation in my book Save Your Home as well as how to appeal a denial.
I hope this helps answer your question.
Expect ONLY Miracles and Question Authority,
Anna Cuevas
The Loan Mod Guru