Do you know how to estimate the net present value (NPV) of your home? Have you ever even heard of NPV?
Especially if you’re a struggling homeonwer looking for a loan modification, knowing what your NPV is and how to calculate it is crucial.
On this blog, the comments from readers frustrated with their mortgage servicers never seem to stop rolling in. By now, most of you are likely familiar with the complaints we’ve been hearing for years.
Whether it’s HAMP trial payments that extend past the stated three months (often continuing for a year or even more), or an unexplained denial from one of the government’s housing-preservation efforts, the crux of most of our comments deal with a frustration over the lack of communication between borrower and servicer.
Homeowners: Do you trust that your mortgage servicer truly has your best interest in mind? How confident are you that if or when you enter into financial trouble, your mortgage servicer will be there for you, willing and able to help you remain in your home?
With all the negativity surrounding the mortgage servicing industry these days, it stands to reason that a large percentage of borrowers wouldn’t place too much trust in their servicer to help them through a rough financial patch. The amount of confidence you have in your servicer’s willingness to help you stay in your home could even influence your opinion on whether or not the home affordable modification program (HAMP) should end before its slated expiration date (December 2012) or even be extended beyond that. Read the rest of this entry »
Since the infamous robo-signing scandal, we’ve been keeping up on the potential penalties lawmakers have threatened to bestow upon mortgage servicers for their faulty or improper actions against struggling homeowners.
Just last week we reported that the head of the Federal Housing Finance Agency said that Fannie and Freddie “will be moving forward with servicer penalties… in the coming weeks.”
Back in early 2010 when the home affordable refinance program (HARP) was extended until June 30, 2011 (Making Home Affordable.com actually lists HARP’s expiration date as June 10, 2011), I challenged the logic behind that decision:
If low rates are no longer the catalyst behind refis, and outside forces such as strict lending conditions and higher fees are preventing new refis, does HARP even have a purpose?
You would be pretty hard-pressed to find a market observer out there who is impressed with the strides the Home Affordable Modification Program (HAMP) has made since it was introduced in February 2009. I’ve often been extremely critical of its success, or lack thereof, and the money we’re spending, or wasting, on its behalf. For one, I get especially irritated when Washington forgets about HAMP’s original goals and functions and tries to turn nothing into something.
As much as I have lambasted HAMP in this blog, I can honestly say that, until recently, I’ve never thought too much about clipping the initiative before its slated expiration date. However, recent comments from several lawmakers have got me thinking: maybe it is time for HAMP to go.
Republican lawmakers have been making quite a bit of noise recently, calling for shakeups of certain government policies as they pertain to Washington’s involvement in the mortgage and housing markets. Rightfully so if you consider the mounting tab taxpayer are covering to support a government-controlled Fannie Mae and Freddie Mac as well as failing foreclosure-prevention efforts like HAMP. The latest “ruffling” comes in the form of a hearing to be held tomorrow to discuss the future of Fannie and Freddie and perhaps jump-start their reform:
Rep. Scott Garrett, chairman of the House Financial Services Committee’s Subcommittee on Capital Markets, announced that he would hold a hearing Wednesday on Feb. 9 on reforming Fannie Mae and Freddie Mac.
At a time when certain Congressmen are saying that Washington should get out of the foreclosure prevention business, other key administration officials are saying that we just need to do a better job.
On Tuesday we wrote how Rep. Randy Neugebauer (R-Texas), the chair of the House Financial Services Oversight Subcommittee, said “All these foreclosure mitigation initiatives we’re taking need to stop.” Neugebauer’s feeling is that these efforts are a) prolonging the crisis; and b) preventing the private market from reentering the mortgage and housing arenas.
HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.
