What is NPV?

NPV stands for Net Present Value and is a very important aspect of the modification process.  Many times someone will qualify for a mortgage modification on paper with their income and expense fitting into the proper ratios; however, they cannot get approved because the investor refuses to budge.  Well, this is because of NPV.  Meaning, the investor know that if they sell the property they will get more money than if they modify the loan.  Obviously this is the case for people who have equity.  If you have equity it may be difficult to get a modification no matter what.  Before you start the modification process you should do some research on how to get an idea of your own NPV (although they hold these calculations very closely).