How Can a Forensic Loan Audit Reduce Your Mortgage Payments?

mortgages

Throughout the economic downturn a lot of American families have lost their homes, others are struggling with their mortgage payments. Homeowners facing foreclosure feel scared, depressed, angry and often embarrassed about not being able to meet their financial obligations. Basing on Mortgage Bankers Association report, every 3 months 250,000 new families are entering foreclosure. One child in every American class room is at risk of losing her/his home because their parents can not pay their mortgage. According to Freddie Mac/Roper poll, 6 in 10 homeowners wish they understood the terms and details of their mortgage better.

One might argue that people are stupid, but I believe that banks and other lenders make their terms and details so insanely complicated. Makes you wonder if they do it on purpose so people would sign without fully understanding what they are signing for.

The Federal Deposit Insurance Corporation (FDIC), an independent agency created by Congress meant to maintain stability and public confidence in our nation’s financial institutions by examining and supervising them for safety, soundness and level of consumer protection, in their recent audit came to the following conclusions:

• 83% of the financial institutions examined were cited for “significant” compliance violations

• 43% of those institutions were “repeat offenders”

• 85% of those repeat offenders were previously highly rated by the FDIC for their in-place compliance process

These irresponsible lending practices are partly the reason our economy is in such a disgraceful shape right now. Do not get me wrong, the blame is also on thousands of individuals who committed themselves to mortgages they can not afford. Especially if they could not bother with reading the fine print and understanding what all this financial lingo means. Do they have to pay the price of having their families thrown out of their houses? Probably not.

Statistics show that mortgages originated between 2002 and 2008, a period marked by real estate boom and rampant lending most of the lending violations occurred. A Forensic loan audit is the fastest way to determine whether or not your mortgage documents contain violations or missing important information.

How a Forensic Loan Audit works?

Your mortgage documents are being requested from your lender and then thoroughly reviewed by the team of legal and/or financial professionals in order to find missing disclosures, documents or some form of misrepresentation that could serve as legal basis for a loan modification case.

The outcome of this process is an audit report that goes to the legal team and serves as a basis for negotiations with your lender. The precedent for modification cases of this kind was set in California vs Countrywide Financial Corporation case dated October 2008. State of California, led by Attorney General Edmund G. Brown, sued Countrywide Financial Corporation and Full Spectrum Lending accusing the lender of deceptive practices and of knowingly steering customers into high-risk loans and not disclosing the risks associated with them. The case was settled out of court on October 6, 2008.

“With this settlement, homeowners will receive direct relief from the catastrophic damage caused by Countrywide” said Attorney General Brown in the press conference following the announcement. “Countrywide’s lending practices turned the American dream into a nightmare for tens of thousands families by putting them into loans they could not understand and ultimately could not afford.”

According to a multi-state settlement Countrywide Financial Corporation and Full Spectrum Lending are expected to provide up to $8.68 billion of home loan and foreclosure relief nationally, including $3.5 billion to California borrowers. Following this groundbreaking case, banks do not get too excited about litigation these days, being aware that their reputation is far from pristine and that public opinion is not on their side. Therefore even the minor violation or discrepancy can take a mortgage holder a long way.

A Forensic Loan Audit will determine how much money the bank is making off of your hardship. Information is available on this subject. Make a decision. Stay informed.

Forensic Loan Audit –> [http://forensicloanaudit.debtassistancelawcenter.com]DebtAssistanceLawCenter.Com

Sarah M. Kline

Forensic Auditor

American Financial Assistance

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