The ""U.S. Treasury"":http://www.treasury.gov on Monday announced the launch of a Web-based tool that allows homeowners themselves to conduct a net present value (NPV) assessment of their mortgage.
[IMAGE]As part of a borrower's evaluation for the Home Affordable Modification Program (HAMP), servicers perform an NPV test to determine if modification is a more financially sound route to take than allowing the loan to proceed to foreclosure.
Oftentimes, the reason a homeowner is denied a HAMP modification is cited as ""failed NPV.""
[COLUMN_BREAK]Treasury says homeowners who are turned down for the federal modification program can use the new tool â€" available at ""CheckMyNPV.com"":https://checkmynpv.com/ -- to compare their own result against that of their servicer.
Homeowners may also use the site, prior to applying for a HAMP modification, to conduct an NPV self-evaluation using the same underlying formula required of HAMP servicers.
Treasury notes, though, that ""due to differences in input data and other industry-related data referenced by the formula, users are informed that CheckMyNPV.com provides only an estimate of a servicer's NPV evaluation and is intended for use only as a guide.""
Homeowners can complete their net present value calculation in around 15 minutes. The website, which also offers a detailed FAQ document, is designed to be a self-service, self-education tool to encourage homeowners to learn more about HAMP and the NPV evaluation process.
Treasury is encouraging homeowners to share the information provided by the site with their servicer and discuss the factors considered in the NPV evaluation to explore all foreclosure prevention options.