Net Present Value (NPV) is a way of comparing the value of money now with the value of money in the future. A dollar today is worth more than a dollar in the future because inflation reduces the buying power of the future money. As a requirement of An Act Preventing Unlawful and Unnecessary Foreclosures, a NPV analysis will be conducted for certain mortgage loans. Lenders cannot foreclose on a homeowner if modifying a certain mortgage loan will cost the lender less than foreclosure will cost the lender.

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