Forensic Loan Audit

It has been estimated that over 80% of loans that were obtained between 2001 and 2006 have predatory lending violations. Most of the violations involve TILA (Truth In Lending Act) or RESPA (Real Estate Settlement Protection Act). The Lender or Bank that now owns these loans is now liable for these violations. The penalties vary but in most cases the bank would be responsible to pay legal fees for both parties if they are found to be in violation. That can add up fast.

Any homeowner that is serious about obtaining an aggressive loan modification should start with a Forensic Loan Audit. There are many companies out there willing to do a forensic audit independent of a modification service or in conjunction with their loan modification services. This is not intended to be legal advice, (you will need to consult an attorney) but an experienced attorney can tell you exactly what the consequences are. If you do decide to proceed have your attorney request a restraining order so that no payments or late fees will be required until the situation has been resolved. With the threat of foreclosure and the possible litigation might be enough for your lender to reduce your balance to current market value as well as a possible rate reduction.

If you attempt to do the loan modification your self and don’t have success (remember to be persistent) it may be time to seek the services of an attorney to negotiate on your behalf. When you have an attorney requesting loan documents and fighting for your loan modification the bank is more likely to work with you. They will realize that the threat of being sued to real. You may determine that the $2,000 - $4,000 that you will spend for an attorney will be well worth it if your principal balance and interest rates are reduced.