POWER TOOLS for Investor Denials, the NPV Discussion, and Pushing a Servicer to Modify a Loan

By Mandelman

Anyone who has applied to have their loan modified knows the process is no fun, but having talked at length to literally thousands of homeowners who have gone through the process, the worst part is the uncertainty. As I’ve heard many express before, it’s the uncertainty inherent to the loan modification process that drives homeowners to distraction.

Well, there are now some tools that were never available before… for example, now you can know things about your loan and the Residential Mortgage Backed Security or RMBS TRUST that holds it, that you couldn’t have know in the past. Now you can change the outcome of the NPV test and really know what’s in the best interests of investors. Now you can use these answers to push your servicer to modify your loan, as simply wasn’t possible… until now.

Now, before we go any further, let’s talk about a few things that are important to know.

1. Will any of the new tools guarantee that your servicer will modify your loan? No, absolutely not. Make no mistake about it, nothing can do that, in fact, I don’t even think your servicer can guarantee what it will do from one day to the next. But, the tools I’m talking about are those you’d want to bring into battle if you could.
2. Will the new tools make the loan modification process better? In some ways, yes… you’ll have less uncertainty with which to contend, and that’s always a good thing. But, it won’t stop your servicer from being… well… a servicer. And nothing will make the loan modification process fun.
3. Will the new tools improve your chances for getting your loan modified? It depends on a lot of different variables, but if everything else is as it should be… your income is right, your expenses are in line, then I would say the answer is yes… these tools do improve your chances.
4. Can you take the new tools into mediation or court? Yes, you absolutely can. The tools I’m talking about utilize the same data that investors in mortgage backed securities access when making investment decisions related to millions, or even tens of millions of dollars. In fact, mediation can be one of the most effective places to use them.

#1: The RMBS TRUST Loan Modification Report

The first tool is called the RMBS TRUST Loan …read more