If you recently for a loan modification under the Modification Program affordable housing (COPE) act have applied will be surprised to learn that the loan modification approval is very low, some statistics show that nearly 10% to 12%. Although the program should be available to more dominant than 4 million homeowners who have debt on their mortgages, this program reaches only a small percentage of owners. The COPE program was developed to have to relieve the pressure of debt families financial difficulties, but the results are not only the brand.
According to the U.S. government, you may be able to qualify for a HAMP in loan modification if you meet all the following criteria:
First Take the property as your principal residence.
Second You have your mortgage or before 1 January, 2009.
Third You have a mortgage payment that is more than 31 percent of your monthly gross income (before taxes).
4th You have up to $ 729 750 in your home.
5th They have financial difficulties and are delinquent or in danger of falling behind.
6th They have sufficient income and documented to support the modified payment.
7th You may not have been within the last 10 years, theft crimes, theft, fraud or forgery, money laundering and tax evasion in connection with a mortgage or real estate transaction.
Many owners are significantly above mentioned criteria of the program of the bank with a mysterious and seemingly intentionally confusing reason to be rejected, your loan will not be tested by the NPV. You will receive a document with 50 points for the denial of the criteria against which calculates the present value of the mortgage bank, but nothing of what it means and how it is calculated to explain. What exactly is the secret formula for the present value and what can be done to understand?
In short, the test uses the present value, to determine the economic benefits of the options for the bank that the bank if you cannot pay your mortgage: (a) the foreclosure and loan modification (b). The present value of the criterion weights is essentially two options side by side, and if the bank has more money by making your credit, you're right! This program has no help with them, must remain at home - that the banks do not care how it affects you personally. All that counts is to win more money.
So what can you do to give the scales in your favor a tip? Understand what is the present value is and how to manipulate the formula for it. You must know the formula, or at least understand the various factors that influence the calculation. Unfortunately, the banks will never tell you the exact formula used, but the law must be used by the specific criteria in the calculation report. But with a little math and a spreadsheet program intelligent cash value, you can click their way into the formula that will help you learn how to be returning to manipulate the results.
The federal government released a VAN marshaling these banks change to suit your needs. Probably not getting the exact calculation, but understanding of the benefits of the formula, you can help with the impact of the result of the calculation. Factors for the calculation:
• The current value of your home - determines what they can sell the house if we exclude
• It is estimated that the "cost burden" of the bank - the time the house would remain on the market, the costs of enforcement, etc. This may vary by region.
• How many payments (if any) are back - how much they have already lost
• Evaluates the percentage of modified loans in foreclosure anyway - to calculate how much they lose to lower your monthly payments, but not impossible. This can also vary from one region could be the bank a higher appreciation of the risk if you do not quite understand what you plan to keep the house!
• on the monthly income, how much you pay each month for the mortgage-based - they take their monthly salary, subtract payments on other debts such as car loans, minimum payments on credit cards, taxes and insurance, and determine what you can afford the 31 % of total final
Finally, the addition of all this, they come with two numbers:
1.The amount of change in bank credit to what you can afford based (they claim)
2.The value of the bank foreclosure on your home and resale at auction
If the value is 1 greater than 2 - Congratulations - you get a change study. Otherwise, you get a rejection. If you have been so rejected, as you can tip the scales in your favor? Take a look at number 6 before - you have to show that 31% of your income documented high enough to make a payment that you can loan more profitable for the change to bank foreclosure. For example wool not your income is too low to qualify.
Find a way to get more monthly income or self-employed, the challenge of the estimated revenue for you display. Documented for independent manipulation of their income seems to have more flexibility in the production loan modification.
Remember that subtracting your monthly debts of other monthly salary / income. So clearly, one credit card consolidation can be achieved by the lower interest rates help to show more monthly income. If you have a family with two cars with two car loans, consider selling a car and a drummer for the money to go to work. Remember that this rid of the monthly amount you have, and a car payment of $ 300 will have a significant impact on your monthly cash available to improve your calculation.