Friday, October 09, 2009


I just received this in the mail from my lender:

Dear Borrower:

Select Portfolio Servicing, Inc. (SPS), as a servicer for your loan, has reviewed your account for the Obama Administration's Home Affordable Modification Program (HAMP). We regret that we are unable to qualify you for HAMP based on the information you provided to us. The reason you do not qualify is that you did not pass the U.S. Treasury Department's Net Present Value (NPV) test. The NPV test determined that the amount realized by sale of your property following foreclosure exceeds the amount that would be obtained through a modification of your mortgage.

Words absolutely fail me at this time.

I very well could be looking at foreclosure in the next few months.



Eric Allix Rogers said...

Wow, that's horrible! Good luck - I hope something changes for the better!

The North Coast said...

So much for mortgage assistance for deserving borrowers who are confronting reduced incomes and/or job loss.

I said it when the bailouts and mortgage assistance programs were first introduced and I'll say it again- the loan modification programs are window dressing created to disguise the fact that all the assistance is for the lenders.

Helping people like you and me to stay in our homes, or in buying truly affordable housing, was never the point. It's all about keeping our financial elite in their $40 million houses. Notice that amidst this circus of unbelievable fraud and financial lunacy, almost no one has been indicted.

Loan mods never were meant for deserving borrowers such as yourself who are facing default because of job loss and/or reduced income. They were designed for people who borrowed so far over their heads that there's no question of their being able to pay their mortgages on normal terms, which is what created this situation to begin with.

Guess what- most buried borrowers will not qualify for modification, which is optional on the part of lenders anyway. If your lender figures they can make more money foreclosing you, that is what they will do.

Meanwhile, our idiot government continues to bury more people in overpriced housing and bad loans through the FHA, which is underwriting the next wave of bad loans. 3.5% down and you can use your $8000 tax credit. Worse, the FHA is even writing EQUITY EXTRACTION loans that are ADJUSTABLE, with really high loan-to-income ratios. Is this not what created our problem to begin with? But our leaders' priority is to re-inflate the housing bubble and goose housing back to the unsustainable levels of 2005, while talking out the other side of their mouths about "affordable housing". HUH?

So we can expect another wave of defaults from FHA loans in a couple of years, and a bailout of the FHA on the taxpayers' dime.

I congratulate you for holding on for so long in the face of job loss. If anyone deserves assistance, it is people who are faithful payers who borrowed honestly, but are now facing layoffs and salary reductions as a result of the recession produced by the insanity of the past 7 years.

If indeed you do end up in foreclosure, you at least know that you operated honestly, and that there are so many other people in the same place that the ding on your credit rating will be relatively minor compared to what it would have meant in another era.

kwintessential said...

What more do you need to prove, in order to qualify? That was a ridiculous reason to reject you for assistance. I agree with teh Nort Coast poster, and its very unfortunate that deserving people must suffer. Stimulate the economy? How can this be done, if people are out of work, losing their homes, and getting rejecting letters for assistance?