| Can I Benefit From A Forensic Loan Audit Even If I Am Current On My Mortgage? |
| Articles - Mortgage |
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Of the 2 or more million mortgages that were funded between 2000-2007, many of these loans were funded unlawfully. During that period, bankers, lenders, mortgage brokers, appraisers and others in the industry enjoyed very prosperous times. Many of these people performed their jobs responsibly, while others performed their duties illegally. Prosecutions are continuing as these predatory lending violators are being brought to trial.
Of the 2 or more million mortgages that were funded between 2000-2007, many of these loans were funded unlawfully. During that period, bankers, lenders, mortgage brokers, appraisers and others in the industry enjoyed very prosperous times. Many of these people performed their jobs responsibly, while others performed their duties illegally. Prosecutions are continuing as these predatory lending violators are being brought to trial. Your loan may be unlawful, and you may be entitled to substantial damages whether or not you are currently in foreclosure. A forensic loan audit is designed to look for violations of federal and state lending practices. Well over 83% of the forensic audits performed to date reveal major TILA (Truth in Lending Act), RESPA (Real Estate Settlement Procedures Act), Predatory Lending, and Real Estate/Mortgage Fraud violations. The only way to be sure if your mortgage contains lending irregularities is to perform a forensic loan audit. In essence, a forensic loan audit is a comprehensive review of your most recent loan package, line by line, page by page. The purpose of the examination is to identify any illegalities performed by the lender, broker or any other parties in conjunction with the loan. Why is this audit so important? This simple and straightforward answer is, loans must be legal to remain enforceable by the lender. Loan violations are serious offenses of federal laws and lenders may face stiff fines and penalties for breaking the laws. For the most part, lenders and banks are firms run by reasonable business people. Begrudgingly, they understand the financial mess they were instrumental in creating, and want to avoid any possible large fines or being faced with expensive litigation. How does the average home owner benefit? Violations are like bullets being loaded into a gun, used by the audit team to argue your case with the lender. As a rule, the more violations, and the more severe those violations are, the better your chances of obtaining a favorable settlement is going to be. This settlement may include punitive damages, attorney fees, lower monthly payments, a principal reduction, a delay or prevention of a foreclosure sale and more. Assuming there are violations on my mortgage loan, then what happens? If the forensic loan audit uncovers evidence of deceptive lending practices or mortgage fraud, you probably have a very good case with more than enough leverage to negotiate a reasonable settlement with your lender. Without leverage you are at the mercy of the lender who will either stall you off or wear you down to the point of accepting a gratuitous offer. The penalties for failure to comply with the Truth In Lending Act and other sections of the regulations as they apply to mortgage lending, can be substantial. A creditor who violates the disclosure requirements may be sued for twice the amount of the total finance charge on the loan. In the case of a home mortgage, this can be a very significant amount. If you are serious about saving your home and getting your life back on track, a forensic loan audit may be exactly what you require. A forensic loan audit may uncover certain irregularities which in turn will give your legal negotiators the ammunition they need to work out a favorable loan modification program for you. Many homeowners such as yourself are able to work out lower monthly payments, reduced interest rates and even principal reductions. Your home and your family's well being could be at risk. You owe it to yourself and your family to pursue all available options. Remember, the worst thing you can do is to do nothing. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Arnold Stadneck, a retired building inspector, never heard of a forensic loan audit. When he refinanced his sprawling lakefront home in 2003 he had no idea that he would be one of thousands of borrowers, a victim of the financial meltdown, applying for a loan modificationwithin the next five years. |