Forensic Loan Audit
What Is A Forensic Loan Audit?
A Forensic Loan Audit identifies infractions and violations committed by your lender and/or broker when they originally funded your loan. To a large extent, these violations are the LEVERAGE used to argue your case against your lender. Generally, the more violations, and the higher their severity, the better chance you have of obtaining a loan modification with long term positive results. A Forensic Loan Audit is the FIRST STEP in obtaining a home loan modification if you are not behind in your mortgage payments, facing default or foreclosure. It’s critical when commencing any type of litigation when fighting foreclosure. You should obtain a Forensic Loan audit to determine what laws were broken, if any, by your lender. BEFORE YOU EVEN CONSIDER FILING A LAW SUIT WITH YOUR LENDER, A Forensic Loan Audit will provide the information and leverage necessary for a successful outcome. Lenders will want to settle with a loan modification rather than face costly litigation.
Many loans funded during the “boom” years of 2002-2006 were performed with legal violations. Although only a fraction of the loans were funded with blatant disregard for the law, the majority of loans have significant violations resulting from carelessness, greed or just innocent oversight by the lender. However, no matter why these violations were performed by the lender, these violations carry EXTREMELY stiff financial penalties for the lender, and can result in SERIOUS legal consequences to the lender, such as forcing the lender to refund all interest paid to date back to the borrower.
Loans with illegal terms or conditions are not enforceable. Foreclosures resulting from illegal loans are also not enforceable. The foreclosure process is STOPPED when litigation on a questionable loan begins. Mortgage payments are NOT required during the foreclosure or litigation process, although depositing the mortgage payment into a separate bank account is often considered a gesture of good will.
Lenders will choose the most rational and fiscally sensible response when presented with the legal facts. When facing their legal options: modifying your loan, foreclosing your home, paying some high-priced attorneys to litigate, or risk stiff federal fines and penalties, many lenders will choose Loan Modification as the most financially sensible option.
Understand that in order to take the high road position, YOU MUST KNOW WHAT VIOLATIONS WERE PERFORMED BY THE LENDER.
DOCUMENTS REQUIRED TO RUN FORENSIC AUDIT
1. Good Faith Estimate
2. 1003
3. Note
4. Final Truth and Lending
5. Final HUD 1 or 1A
Lender Violations
Mortgage Violations. Can You Avoid Bankruptcy? Stop Foreclosure? Get Recourse?
What violations lie within your mortgage loan? The company providing audit solutions will investigate whether the foreclosing party has legal standing to enforce the Note and Deed of Trust; Detect, document, and validate Truth In Lending Act violations that trigger the extended right to rescind the mortgage transaction;
WE CAN HELP FIND OUT
• Did the loan officer accurately disclose the loan terms to you?
• Did you sign a separate broker fee agreement?
• Was your home’s value inflated by the lender’s appraiser?
• Did the lender fail to verify your ability to repay the loan?
• Were you given all federal and state disclosures?
• Were you properly notified of your right to cancel the loan?
• Do your closing documents contain any technical errors?
• Were you charged excessive or undisclosed fees?
• Has your loan been sold without your knowledge?
• Any and all applicable federal and state law violations
• The real terms of your loan
• Outline of hidden fees and/or commission earned by your broker or lender
• A complete assessment so you can pursue possible legal claims against your broker and/or lender
• Report of all factual findings of the forensic audit
