Forensic mortgage audits are being used as leverage for attorneys and mortgage modification experts to negotiate affordable work out plans with borrowers facing foreclosure. Studies show that at nearly 80 percent of mortgage loans contain State and Federal Violations.
Many mortgage loans originated during the years 2001 – 2005 contained legal violations; some were unintentional; some were blatant acts of fraud. The mortgages originated during this time frame were large contributors to the mortgage meltdown which has resulted in a flood of home foreclosures during the last few years.
Whether the violations and errors in a mortgage file are just innocent oversights or acts of carelessness, greed or fraud by the lender or mortgage broker, they can carry serious legal consequences, fines and penalties for the lender. In many cases, the lender can be forced to refund all interest paid from the origination date back to the borrower.
A forensic mortgage examination is a comprehensive investigation of a mortgage loan file to determine if there were errors or violations of a borrower’s rights under the Truth in Lending Act. When mortgage loans contain errors or illegal terms or conditions, they are not enforceable; therefore any foreclosure action must be stopped when litigation on a questionable loan is started. Mortgage payments to the lender can be discontinued; however, they should be deposited to an escrow account during legal proceedings.
In addition to determining the enforceability of a mortgage loan, a forensic loan audit adds leverage to a distressed homeowner’s negotiating power when they are attempting to get a mortgage modification. A lender will be compelled to cooperate in modifying a mortgage if errors or violations are found during a mortgage file examination. Lenders understand that they are much better off agreeing to an affordable work out plan than going through a long, expensive lawsuit.
My Mortgage Auditor is the industry leader in forensic auditing and mortgage modifications to help people keep their homes. Their greatest asset is their reputation; their goal to help homeowners, attorneys and loan consultants negotiate a winning solution for all parties involved. My Mortgage Auditor has clients all over Southeast Michigan, Oakland County, Southfield, Pontiac, Royal Oak, West Bloomfield, Farmington Hills, Wayne County, Detroit, Dearborn, Canton, Livonia, Westland, Macomb County, Sterling Heights, Warren, St. Clair Shores, and neighboring cities and communities.
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A loan modification is simply an adjustment made to the terms of the existing loan to reduce the probability of a borrower defaulting.
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