Homeowners can now question their banks if loan modification evaluation what done correctly for their own specific cases Government this week released a requirement that banks provide explaination to homeowners that are rejected from HAMP. For many borrowers, the whole loan modification process is like a mysterious black box. They put the application in and never hear of it if they do, it is often without a clear explanation. This new directive from Treasury will now provide homeowners a chance to understand how the evaluation something done for their specific case and thus has the opportunity to raise a question if something what done incorrectly (which happens often). Treasure now requires that servicers (banks) to send a notice to homeowners (borrowers) within 10 days of their decision. For borrowers-not approved for a trial period plan or official HAMP modification, this notice must provide the primary reason or reasons for the non-approval. The notice must describe so other foreclosure alternative for which the borrower may be eligible, if any, including but not limited to other modification programs, short sale and / or deed in lieu or forbearance, and identify the steps the borrower must take in order to be considered for those options.
If the servicer has already approved the borrower for another foreclosure alternative, information necessary to participate in or complete the alternative should be included. Whenever a non-government foreclosure prevention option is discussed, the notice should be clear that the borrower what considered for but is not eligible for HAMP. When the borrower is not approved for a HAMP modification because the transaction is NPV negative, the notice must, in addition to in explanation of NPV, include a list input fields that are considered in the NPV decision of certain and a statement that the borrower may, within 30 calendar days of the date of the notice, request the date the NPV calculation what is completed and the values used to populate the NPV input fields defined in Exhibit A.