Should Homeowners Get a Forensic Loan Audit?

Homeowners seem to be at the receiving end these days. But if they do a little planning and learn about certain services, they can stop the dreaded term of “foreclosure” from entering their life!

If they are not facing foreclosure, still they should know about these methods because it can help them to re-negotiate their loan or modify their loan plans. One of the best ways to face lenders is the forensic loan audit, but very few homeowners seem to know the term.

The first image that may come to your mind when you hear this term is a group of people dressed as “CSI”. Well forensic loan audit may not be as glamorous or exciting as that kind of forensic investigation, but still, it has its own charm.

To understand the importance of this kind of audit, first you have to understand the process of lending itself. There are various state and federal-level violations that four out of four lenders regularly commit, whether knowingly or unknowingly.

Two such acts are the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). But how does the homeowner come into the picture when lenders or mortgage companies engage in these violations?

If the violations are there and the borrower can prove it, then the lender has to pay a severe penalty as per rule. That happens irrespective of the fact whether the violation was voluntary or just a simple overlook.

As a result of the violations, a lender may be forced to give back the interest over the period of time in which this violation occurred. If the borrower starts a litigation case on this questionable loan, then the impending foreclosure may be halted and even the mortgage payment may be stopped. If there is no question of foreclosure, the borrower can use this kind of information to curry a favorable deal from the lender.

If the borrower uses forensic loan audit against the lenders and finds a good amount of violations on its part, then that can be used to modify the payment plan even if the borrower has financial difficulties or bad payment history. In fact, the borrower can sue the lenders and claim damages if they can prove through a forensic loan audit that the loan was not legal.

So whether you’re facing foreclosure or finding it difficult to pay your mortgages, go for a forensic loan audit through reputable a company. Many of your mortgage or foreclosure problems will be solved by doing this simple yet vital check of your loan papers.

H.E.L.P. Program

H.E.L.P. Program (Homeowner Education = Lender Performance)

The H.E.L.P program assist homeowners who may not have an enforceable Mortgage.

A significant percentage of Mortgages originated during the mortgage boom were either in violation of federal and/or state fair lending laws or were written in a way that  makes them not enforceable. A third party auditing company will audit your Mortgage to unconver these issues.  If violations are found the next step would be to go through the courts or begin discussions, negotiations and/or litigation with an attorney, your Mortgage Holder and/or Lender.

Benefits:

• Shifts the power from the lender to the borrower
• Provides the information that an attorney would require to take on such a case
• Allows you to exercise your rights as a consumer and borrower against the lender
• May benefit homeowners that owe more than property is worth

Note: The potential benefits of this program are significant, but the process can be lengthy, so it’s not necessarily suited for someone who wants a quick fix.