Although the federal government Home Affordable Modification Program (HAMP) is supposed to provide assistance to people who have underwater mortgage debt, you may not really get mortgage help.
In the Chase Sued AGAIN Over Mortgage Modifications Gone Wrong article by Arthur Delaney posted May 4, 2010 on the Huffington Post, Alex Lam has a story to tell about how his request for a loan modification was handled by JPMorgan Chase.
Alex Lam Followed Chase’s Instructions To Qualify
According to the article, Alex Lam did everything that Chase asked him to do to qualify for the HAMP assistance. But in the end Chase turned Alex Lam down. He was rejected because “Chase told him he’d failed HAMP’s opaque “Net Present Value” test.” He didn’t get mortgage relief.
What Is The Net Present Value, NPV Test?
The NPV test is a way for a bank to determine whether the bank would get more money by making a loan modification than the bank would get by not doing it. The “not doing it” part means that the bank would make more money foreclosing on your house than helping you out so you could stay in your home.
Boy, does that sound like a gotcha.
So it would seem that even though you could meet the other requirements of the HAMP you still could be turned down because the bank would lose money giving you the loan modification. Nice plan.
HAMP may not give you any mortgage help at all. According to the same article the banks “voluntarily participating in HAMP have given permanent mods to just 230,000 homeowners in the program’s first year, a far cry from the three to four million officials said HAMP would help.” So, will you qualify for help?
What If You Could Get Mortgage Help Without Any NVP Test?
Our Mortgage Debt Reset Program does not require any NVP test. The program is open to anyone who has an underwater mortgage. In addition, our Mortgage Debt Reset Program will work as long as you could afford to make mortgage payments of about half what you’re currently making.
To get the specific requirements of our Mortgage Debt Reset Program go to Find Out More About Our Mortgage Debt Reset Program and sign up to receive our free no obligation information package.
