One of the most common reasons a borrower might be denied for a modification is due to a “negative NPV”. This phrase stops most homeowners in their tracks. Most don't know what NPV stands for, much less how to verify whether or not their NPV truly was negative. The Net Present Value Analysis is a sophisticated financial method used to calculate, in today’s dollars, the value of payments made over a period of time. By comparing the NPV of a proposed modification with the NPV of foreclosing, a bank can determine which avenue will make them more money. Under the Making Home Affordable Program the government requires a bank to modify when the NPV favors the proposed modification.

Fortunately, this Law Firm is very familiar with NPV tests, and conducts one for every client. We will know before we submit an application whether or not the client passes the NPV Test. There are many variables involved in the NPV test which, if miscalculated, will drastically affect the NPV result. We often find that banks make errors when performing the NPV test. By identifying the errors throughout the bank’s review process, we eventually succeed in obtaining a loan modification more than 90% of the time, even if the borrower was initially denied.

The first step in any loan modification is to define what the borrower can afford. The next step is to calculate the terms necessary to adjust the mortgage payment to that amount. The final step is to determine whether or not the proposed modification passes the NPV Test.

By using the NPV test, we calculate the terms under which you qualify for a modification. We prepare and submit the modification package and follow up weekly to ensure the bank modifies your mortgage in accordance with legal, financial and equitable requirements.

Sometimes, our clients do not initially pass the NPV test or would be denied a modification for other reasons, if application was made under those original terms. In those cases, we advise clients what financial steps are necessary in order to qualify for a modification. Such steps may include claiming alimony/child support, counting additional income from other family members in the home, discharging certain debts through bankruptcy, etc. It is essential to identify the income and expenses needed to pass the NPV test but not generate additional unnecessary income or expenses which may cost you a modification.

Tony is a single father
of a special needs daughter. He is a certified auto-technician of 35 years who struggled to make ends meet after a significant decrease in business in addition to the substantial medical expenses due to his daughter’s condition. Tony, like many, tried to get a modification on his own, without success. He came to The Rogers Law Group for consultation during which time we discovered that the bank had sold Tony’s home in a foreclosure auction, without his knowledge, five days before! Without stepping into the courtroom, we were able to vacate the sale of his property and secure a permanent loan modification on both his first and second mortgages. Tony is happily living in his home today.

Myron and Tonya,
both full-time professional firefighters with two kids (including new baby!), came to us a little over a year ago after they had been served foreclosure papers. Myron was working a second job on top of firefighter/EMT to make ends meet. The Rogers Law Group was able to obtain a permanent modification on their first mortgage and pay-off of their 2nd mortgage with a 90% discount. Their foreclosure has been dismissed and Myron & Tonya have time to enjoy the small things in life.

Jake and Melanie
have two children. One child is autistic and requires extensive medical treatment and special education, most of which is not covered by insurance. The other suffers from a chronic, often debilitating, medical ailment. They did not qualify for a HAMP modification and had been served with foreclosure papers. The Rogers Law Group was able to demonstrate through their NPV test that a unique modification would be financially beneficial to the bank and allow the borrowers to keep their home at an affordable payment. We were able to obtain a permanent modification which cut their payment by nearly 50%. Jake and Melanie were overjoyed.

Robert is a retired teacher
of 34 years. He and his wife, Bonnie, have four children of their own and were given full custody of their teenage nephew who had been living in a dangerous environment. The added strain of another mouth to feed, in addition to medical costs for two chronic ailments, did not leave enough money to pay the mortgage. They did not qualify for any of the government programs and their bank had strung them along for over a year with various forbearance plans. We were able to secure a permanent modification which will allow Robert & Bonnie to care for their family without worrying how they will pay the mortgage next month.