loan modification

 

Have you ever wondered when the right time to do a Loan Modification is?

When is the right time to reduce risk?

 

With Home Value Predictor’s Micro Market forecasting, sometimes it is your firm’s best interest, to approve loan modifications.

 

With current local market trends at different Micro Market levels, and Statistical Confidence numbers, you can apply a simple mathematical process to determine when to make a Loan Modification.

 

Knowing when to modify - Reduces Risk and Prevents Future Losses

 

Loan Modification – Table 1

 

 

Net Benefit, If 20% decline, Modify and “saves” $100,000

 

Above is an example of a $200,000 house with no equity.   And what will happen if you DID do a loan modification.   And price went up or down 20%.  And as you would expect, you would profit or incur losses, defending upon the future value changes.

 

You can see there is a BIG difference.
A BIG difference, if you know the future, and make the right decision. The Net Benefit, if a 20% decline, and you Modify, “saves” over $100,000.

 

Sell or modify if you Expect FUTURE large losses.

 

NOTE, as mentioned earlier, you can also choose which Micro Market forecast, based upon Statistical Confidence, to maximize risk reduction for Loan Modifications.   Use the criteria mentioned earlier.

 

 

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