Does the REST Report Really Work?! (Understanding NPV)

By James Young on April 4, 2013
Does the REST Report Really Work?! (Understanding NPV)

A lot of people have asked me… “Does the REST Report really work?”

The answer is yes… the REST Report is highly effective and has a stellar track record. But, it’s important to keep in mind, the REST Report does not modify mortgages, people do.

In other words, having a REST Report doesn’t grant you a modification in itself, it simply empowers you (or your foreclosure consultant), to get the results you deserve.

The heart of the REST Report is a complete analysis of all the options an individual homeowner has with regard to a possible mortgage modification.

In the past few years, hundreds of thousands of homeowners have turned to home mortgage modification to help them deal with the twin demons of soaring mortgage payments and spiraling property values.

The process seems relatively straightforward: Fill out a few forms, provide a few financial documents and the bank does the rest. The problem arises when you get the lender’s decision, typically a letter with the terms of a modification or an outright denial.

In either case, there’s no real explanation of how the lender reached their decision and many homeowners are left wondering if they’ve been given the “whole story.”

The Lender’s Approach To Modification

When a lender considers mortgage modification, they begin by determining the net present value, or NPV, of the mortgage and property. So what’s NPV? In brief, NPV helps lenders determine whether it’s in their best interests to foreclose on a mortgage or to modify that mortgage to help the current homeowner remain in the home.

NPV is determined by a ridiculously complex formula which relies in part on looking at what a dollar is worth today and then comparing that with what a dollar is projected to be worth in the future. Once a lender determines the NPV, it decides which option to offer the homeowner.

It doesn’t take a mind reader to figure out that the option the lender offers is the one that’s going to be most profitable to them.

So what does this mean to consumers? It means that to be sure you’re really being offered the best option, you need to have an independent analysis done that uses the same NPV formula. One analysis proving especially popular with consumers is the REST Report.

How Can The REST Report Help Homeowners?

The REST Report was developed to help consumers, and it does a lot more than just calculate NPV. For the first time, the REST Report has enabled homeowners to fight back against incompetent lenders and expedite the loan modification process.

For instance: Are you eligible for a lower interest rate and monthly payment? Are you eligible to have your principal decreased? Maybe a short sale really is your best option?

The REST Report will tell you.

What’s really important: The REST Report is not being produced by an individual lender – it’s an objective report produced by industry experts, which means you can rest easy knowing the information you’re getting is in your best interests and not sugar-coated to suit a bank’s needs. Homeowners who’ve used the report have literally saved from tens of thousands to hundreds of thousands of dollars, either through payment reductions or reductions of their principals.

So back to the question in the headline: Does the REST Report really work? Not only does it work in helping homeowners understand their options in home modification, but it also helps consumers take back control over their own lives, their own finances and their own futures.

In a nutshell: Independent analyses like the REST Report shift the balance of power in favor of your interests, and most homeowners would say that’s a change for the better.

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About James Young

My name is James Young- I love red wine, sailing, and playing guitar. I believe that everyday is truly a gift. I'm blessed to live five minutes from the sand in the beautiful city of Long Beach, CA. When I'm not assisting homeowners, you'll find me belting melodies with friends around a campfire, wandering the halls of an art exhibit, or watching ESPN re-runs until the sun comes up. So what am I doing here, you might ask? In a couple of sentences- I'm passionate about empowering first-time and experienced home buyers to make their dreams a reality. Whether it's saving thousands on your home loan, buying your first home, or acquiring your first investment property, I'm always here to help. Don't hesitate to ask questions, and please remember to "share the love"! :) #loveloans #loverealestate #lovelife!