Loan Modification Disputing the Lender's Net Present Value Test
Loan Modification Disputing the Lender's Net Present Value Test
Finally someone comes to their senses! For many homeowners' this will hopefully make the difference between staying in their home and possibly having to move.
As anyone who has gone through the loan modification process, understandings that the lender's use their own way to determine the value of your property. The NPV test or Net Present Value is skewed in certain areas. So now the ruling is this:
If you have been denied for a trial payment plan or permanent modification under the Home Affordable Modification program HAMP, due to the Net Present Value, you now as of February 1, 2011 can dispute this. However there are a few things you will need to know before jumping out of your seats!
You have only 30 calendar days from the date of your non approval notice to provide the servicer a written request for a NPV re-evaluation.
Provide a recent estimate of the property value and a reasonable basis for that estimate (this could be an independent BPO or appraisal).
Must be a written request (I would send it certified with a copy of your non approval notice). With supporting documentation supporting your dispute of value.
Upon receipt of the written request from borrower, the servicer must perform an
re-evaluation of the NPV. If the preliminary re-evaluation performed by the servicer results in a positive NPV, the servicer must offer the borrower the opportunity to request a copy of the appraisal of the positive NPV result. This meaning, you have a right to a copy of the lender's results. (See below)
Once the NPV re-evaluation is positive, you will need to submit a $200.00 deposit (15 days) as of the date of the positive re-evaluation. This will go against the full cost of the appraisal in a manner acceptable to the servicer. The balance of the actual cost of the appraisal will be added to the borrower's total arrearage under the existing loan terms.
Although the servicers are not required to obtain a new appraisal if the original NPV property value input was established by an appraisal and performed under the standards in which appraisals are reviewed. A copy of the original appraisal must be given to the borrower.
