Forensic Loan Audit  Forensic Mortgage Audit

What is a forensic loan audit and do you need one?  Well lets talk about that.     In my opinion the following are a list of criteria from which you can safely know that you need a forensic loan audit and possibly a  consultation with an attorney if you fit any 1 (one) or more of the following categories.  You will dramatically benefit, indulge me.   I work in an office with a RESPA/TILA violation litigation Attorney on the bar in Virginia who sues mortgage lenders for TILA and RESPA violations to stop foreclosure, rescind mortgages and to obtain dramatic mortgage modifications for her clients .

REASONS TO OBTAIN A FORENSIC MORTGAGE AUDIT:

-You are in a non-fixed rate loan (arm, option-arm, interest only, pick-a-pay)

-Your fixed loan is more than 7%

-You are up side down on your homes equity

-You are behind by at least 30 days on your note

-Your  loan that was originated in 2005, 2006, 2007 or 2008

-You are depleting your savings to pay a loan that your income cannot afford.

-You have received a foreclosure notice

-You have short sold or are short selling a home and  in fear of a deficiency judgment.

-You have filed bankruptcy and have not been foreclosed upon yet and would like to avoid foreclosure through short sale or mod.

-You are in an unaffordable forbearance agreement or temporary mortgage modification and do not know what the bank is going to do next.

-Your negotiations with your lender for a mortgage modification are stalled and you are dealing with idiots at your bank who have no idea what they are doing, cannot negotiate on behalf of the bank and appear to be just running interference with you or making empty promises to you  as you wait for what feels like an impending foreclosure.

A forensic loan audit or forensic mortgage audit is a complete compliance analysis of your loan origination package and the subsequent servicing of your loan by your loan servicing agent.

In it we look through every line item on your HUD-1 to find illegal overcharges like undisclosed YSP’s or Yield Spread Premiums, egregious bloated underwriting fees, unearned fees, fees paid to companies affiliated with your broker or lender that were not disclosed as affiliates.    We look at your final TILA disclosure and calculate whether the finance charge passes the TILA finance charge test.    Your disclosed finance charge over the life of your loan contract must be within $35.00 of the real cost of money over the life of the loan.   Many many many ARM’s miss this calculation.    If the calculation is more than $35.00 understated, your loan is rescissionable by statute.  We talk about rescission in another article on this site.   We look to see if you received your GFE- good faith estimate disclosure within 3 days of your written 1003 loan application.   We look for signature matching and look to find where you didn’t receive disclosures in accordance with Regulation Z which implements TILA the Truth in Lending Act.    We look to make sure your bank has proof that you applied for the loan prior to settlement.   These are some of the things we look at but this is by no means an exhaustive analysis of our forensic loan audit.    Now, having said that what is the nugget of gold we are looking for?   The best result for you is a violation that results in a right to rescind.   The easiest to prove is an understatement of the finance charge on your final TIL disclosure or Truth in Lending disclosure.  But we are also looking for illegal kickbacks violating provisions of RESPA- Real Estate Settlement procedures Act.   We love to find illegal kickbacks and unearned fees which you may be entitled to have rebated.    The holy grail of forensic loan auditing is the understatement of finance charge.    We had three this week that were understated by more than $200,000.    These are serious violations of Regulation Z and will probably result in RESPA litigation to the benefit of our homeowners.    If you are suspect that you were the victim of predatory lending practices you should call us.   Especially if you live in Virginia.   I work in an office with a RESPA/TILA litigator and we will review your documents for free to determine if violations exist.   If they do we will show you a bunch of options that you may not have known about.      Call us today, time is not on your side, foreclosure can be prevented, but rarely is it reversed.   540-341-1481   Or better yet  fill out this form to give us a little more information on you.   We dont spam and your information is completely private here.  We are located in Virginia but can help you no matter what state you are in.       This article is not to be construed as legal advice.

info@LegalForensicAuditors.com 540-341-1481

Fill out the form below the video.      Heres a little levity from George Carlin.