Forensic Loan Audit & Loan Modification

By Kylon Trower · April 20, 2009 · Filed in Foreclosure, Loan Modification

magnifying glass Forensic Loan Audit & Loan Modification

When people look for a mortgage they rely on professional advice and the aid of a mortgage broker or lender. The loan process is complicated and most everyone places their trust in the professional that is guiding them through the process.

Unfortunately, many of these professionals placed thousands and thousands of borrowers in loans that they could not afford or in just down right exotic mortgages, that now have become extinct.

Predatory lending is a buzz word that is floating around a lot right now and for good reason. There are thousands and quite possibly maybe a million plus people that have mortgages where the Truth in Lending Act was violated, thus falling under the predatory lending statue. Many can stop foreclosure if they only knew what to look for and how to defend themselves.

Loan Document Audit

This service is a very specialized and imperative in identifying if a borrower is a victim of predatory lending. We review all loan documents and perform a thorough investigation for miscalculations and to determine if the loan terms are accurate, truthful, and met the requirements of the applicable federal statutes.

Our #1 goal is to determine whether there were violations of federal law. If these violations are found, then the borrower may be eligible for complete relief of the predatory loan. This is know as a loan rescission. Meaning the lender takes back the “predatory loan” and awards or credits back to the borrower all interest made on payments thus far, loan origination fees, all applicable lenders fees, penalties and attorney’s fees.

This can be done by means of a loan modification or a new affordable loan. This allows the borrower to get a new loan with a smaller principle, meaning that the mortgage can be affordable and non-predatory.

Forensic Loan Document Audit

* Complete client interview and all applicable parties
* Complete loan document and disclosure audit by 30 year underwriting and fraud and compliance mortgage professional
* Truth in Lending Act (TILA) and Real Estate Settlement & Procedures Act (RESPA)
* Reverse engineering of your loan terms and Annual Percentage Rate (APR) for possible TILA violations
* Complete 10 page report with violations and findings

Constructive Fraud

Material facts include the terms of the loan, whether there is a prepayment penalty, or any other information which a reasonable borrower would want to know before accepting the loan. Did the broker or loan officer or anyone working for the broker or loan officer fail to disclose any material facts to the borrower?

Fraud and Negligent Misrepresentation

Were any representations, statements, or comments, written or oral made by the loan officer, broker, notary or anyone else which contradicted the terms of the documents?

Negligent Misrepresentation

When a mortgage professional makes errors which a reasonably diligent mortgage professional would not have made, he or she may have made a negligent misrepresentation.
Breach of Contract

The note and its attachments are a contract. The broker must follow all the terms of the contract such as the way the interest is calculated, and the penalties it assesses. Were there any terms in the contract which the lender failed to follow?

Loan Audit Report

* Results report of all factual findings of the forensic audit
* Any and all applicable federal 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

Click here for details about our forensic loan audit and modification solution.

Click here to review a sample of a complete forensic loan audit report.

Click here to review the forensic loan audit and loan modification agreement.

Here are some various loan options available for you:

	Short Payoff	Loan Modification	Home Solutions	Short Sale
Risk	High	Low	Low	Moderate
Success Rate	Moderate*	High	High	Moderate
Create Equity	Yes	No	No	No
Credit	Repairable	Repairable	Repairable	Repairable
Keep Home?	Yes	Yes	Yes	No
Other	Sell/Refi 12 Months	Acceleration Clause**	Sell/Refi/Mod 3-10 Years	1099-C***