Understand the NPV calculation and don't let the bank take your money and your home.

Have you ever wondered why so many borrowers have been turned down for loan modifications on their primary residence  even though they fit the basic criteria for a modification?  Well, it’s because of a little-known way of figuring if the modification is in the investor’s best interest known as the net present value calculator or NPV. Is this calculation in your best interest? Usually, it’s not.

The NPV calculator doesn’t just use the financial information you provided the bank when you applied for the loan modification. You see, the bank has investors — government and private — that provided the funds for your mortgage. These investors don’t want to lose money, as investing is their business, so why you may be eligible for a modification under the basic guidelines, the investor would  lose money by granting that modification. Often, the investor makes more …