Many people are in this dilemma today and of the vast majority I speak to each week, there is not a strong understanding of how the banks look at these situations. Now, here is a tool being put out by the Treasury Department that will help assist homeowners in knowing more about the financial due diligence that lenders go through to determine if a loan modification will be a better choice for them over foreclosure.
This is a great tool for people to use when evaluating their chances of loan modification versus foreclosure or even a short sale, and will help level the playing field, so to speak, when going over your options when on the phone with a loan servicer or lender directly. Too many in the public don’t realize that it’s these kinds of calculations that determine their fate. NPV stands for Net Present Value and it’s a calculation that helps to assess the time value of money.
Pass it on if you know someone who could use it.
