Why You May Need a Forensic Mortgage Loan Audit.
Why an Audit?
Today, the forensic loan audit represents a powerful tool to help clean up the mess left behind by the mortgage meltdown, as well as to safeguard against a future disaster.
With courts recently gaining power to demand loan modifications in some instances, forensic loan audits will likely change how the lending business operates. The system will be more tightly regulated and focused on loan quality, rather than loan quantity. Lenders will seek brokers who consistently produce loans that perform.
In turn, forensic loan audits could make it easier for lenders to highlight lending patterns connected to a single broker. They also could help brokers improve their own work and build a reputation based on quality.
Soon, lenders may perform an exit audit on each loan to ensure that the file is in order. Every loan a broker brings in also is likely to face closer scrutiny to ensure that all compliance regulations were met. These exit audits could prevent errors from slipping through the cracks.
As the use of forensic loan audits becomes more widespread, mortgage brokers must know what a forensic loan audit is and how it can be used.
Our audit in conjunction with supporting affidavits, our expert testimony and discovery review, can make the difference in foreclosure case.
When the homeowner owes more than what the property is worth, this is often referred to as "under water", or "upside down". Facing foreclosure, the homeowner has more leverage than they may realize against their lender. Our auditing services can force that leverage upon the lender and ultimately reduce the principal balance. Yes, is doing so, you may be successful in wiping out large portions of principle. Typically 50-80%!
Loan Modification - most major lenders and servicers will negotiate a loan modification where most of the delinquent payments and foreclosure fees are either wiped out or added onto the back end of the loan. In some cases the interest rate and payment will be reduced permanently. NOTE: Be careful because some loan modifications increase your loan term to its original term or in some cases to a 40-50 year term.
With the overwhelming increase of interest rates resetting on home loans and the devastating effect of this economy, many homeowners are faced with mortgage payments they can no longer afford. It is better to lower the homeowner's payment by lowering the interest rate or payment by creating a payment plan the borrower can afford, than to lose the home in a foreclosure sale.
At its heart, a forensic loan audit is a process that breaks down and analyzes a set of loan documents and litigation documents to determine if all parties completed proper procedures and complied with state and federal regulations during the origination and transfer of the loan.