Many clients are surprised to learn that lenders are still offering loan modifications. While the incentives for lenders has gone down, many lenders would still prefer a performing loan to foreclosure. This analysis is part of the loan modification process to determine whether a lender will reasonably offer a modification based on the Net Present Value Calculation (NPV). One of the modificaitons our office helped a client recently obtain
Client P.D. in Riverside, California.
Before Modification:
Mortgage Payment: $3,301 (includes principal, interest, taxes, and insurance)
Modification Terms:
New Payment: $2,848 (includes principal, interest, taxes and insurance)
Not only did the modification make the client current, the modification lowered the monthly payment by over $400.