Forensic Loan Audit FAQ

Forensic Loan Audit FAQ
This is a sampling of questions we are commonly asked. If you have a question which is not in this section, please contact us.
Q. How do I know if I have been the victim of Predatory Lending?
A. The best way to determine if you have been the victim of Predatory Lending is through a Forensic Loan Audit not Just a RESPA/ TILA Audit. This is a complex process that involves “Rebuilding” your loan. Document by Document document, page by page. Each page is reviewed for any violations that may be found. The final report can be used by your attorney for the purpose of your defense. (Approximately 95% of the documents we examine have had some form of predatory lending, misleading disclosures, or other violations of State and Federal regulations.)
There are hundreds of checkpoints involved in the forensic examination of loan documents. Many discoveries are found that can lead to either legal actions against the lender or a Demand Letter from an attorney ordering that the loan be modified into something you can actually afford.
Q. What if there are no discrepancies found in my paperwork ? Can you still help us?
A. Based on our intake criteria, It is rather rare that we do not find some kind of error in your loan origination documents since over 85% of loans between 2002-2006 have errors, remember we only need a $35.00 mistake . If our loan audit does not find any errors, we still can try to refer you to a competent attorney who “gets it”
Q. Should I file for bankruptcy to save my house?
A. That is only for you and an attorney decide.
Q.My lender told me “they just want all their money”. Can you still help me?
A. This kind of attitude and inflexibility from their lenders is not rare. The attitude usually changes when evidence of loan fraud, predatory lending, or servicing violations is discovered, especially if you have an attorney contacting them on your behalf!
Then there is the issue that the company you make payments to may have NO Authority to Modify Your Loan!. They do not own the Note and have to Follow the Guidelines of the Pooling and Servicing Agreement you loan is tied up in.
Q. What Is loss mitigation ?
A. The purpose of loss mitigation is to work out an agreement between the homeowner and the lender that will stop foreclosure proceedings permanently. Lenders are more likely to respond favorably when there are violations of State or Federal regulations discovered in your loan package, or current servicing violations. The last thing they want is a law suit. If enough violations in your documents, or servicing history, the lender will have little choice but to modify the loan or face judicial litigation
Q. I’m currently in bankruptcy. Can you still help?
A. On the advice of your attorney It may be advisable to go ahead with the document examination. You never know, maybe the violator in your loan is the same entity that caused your Bankruptcy
Q. Do I have enough time to stop my foreclosure?
A. Until you home goes into a foreclosure sale,there is still reason to fight. If a sale date for your house has been set, you need to act fast. In these cases, you can get emergency action by the courts . If need be, we can hopefully find an attorney that could get involved to stop the foreclosure sale. Again, time is not your friend so you better act fast.
Even after the Trustee Sale has occurred, it may still be possible to get it set aside.
Q. How long does it take for you to complete the audit once you receive all of the paperwork?
A. Depending on the Type of Audit and the amount of audits we are currently performing for our clients, it can take several days to several months. Normally, an audit takes about a week to complete the examination of all your documensts,
Keep in mind, what you see is just a whole lot of papers packed full of numbers and probably words you’ve never heard of. Our document examination includes detailed research and investigation of all that transpired on and before the day you closed your loan. What was the par interest rate on that day, what was the index of the one of four indexes the lender could have used on your last rate adjustment. Essentially, every word or figure on every page has to be examined for it’sthe final detaild results. One of the biggest issues is to investigate the servicing of the loan to insure compliance with State and Federal regulations and relationship to the original intent of the Note. There is a lot of attention to detail in the Forensic Auditing of Loan Documents.
Q. How long do we have to act?
A. When you are behind on house payments time is of the essence as every day that goes by makes it that much harder to get a work out agreement with your lender that you can live with. When we point out evidence of loan fraud, or Predatory Lending, your attorney should contact the lenders, who will usually stop the foreclosure in order to give their legal department time to review the case. Pending on their case load, the foreclosure could be put off for up to six months or longer.