Should Homeowners Get a Forensic Loan Audit?

Forensic loan audits are a hot topic, so its important to know the truth about what they can and can NOT do for you, as some companies or law firms may use them as an excuse to charge upfront fees.

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First you have to understand the process of lending itself. There are various state and federal-level violations that four out of four lenders regularly commit, whether knowingly or unknowingly.

Two such acts are the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). But how does the homeowner come into the picture when lenders or mortgage companies engage in these violations?

If the violations are there and the borrower can prove it, then the lender has to pay a severe penalty as per rule. That happens irrespective of the fact whether the violation was voluntary or just a simple overlook. Statutes of limitations vary by state.

As a result of the violations, a lender may be forced to give back the interest over the period of time in which this violation occurred. If the borrower starts a litigation case on this questionable loan, then the impending foreclosure may be halted and even the mortgage payments may be stopped. If there is no question of foreclosure, the borrower can use this kind of information to curry a favorable deal from the lender.

If the borrower uses forensic loan audit against the lender and finds a good amount of violations on its part, then that can be used to modify the payment plan even if the borrower has financial difficulties or bad payment history. In fact, the borrower can sue the lenders and claim damages if they can prove through a forensic loan audit that the loan was not legal.

At the end of the day, a forensic audit is going to provide you with greater insight into your loan, so if you choose to get one done, go for a forensic loan audit through a reputable company. Keep in mind that if you do discover something its not a “slam dunk” and you may have to pursue costly legal action against your lender to receive any potential benefit. Sometime statutes of limitations are expired and there is no point or the reward may be very little, literally only hundreds of dollars. Ultimately, you will want to consult with a licensed attorney regarding these matters.

In general we recommend the path of least resistance as well using proven systems that have already gotten results.  What our your true goals? Have you written them down? Let us know if we can help!

 

About Brett Robbins

Brett Robbins is the founder and CEO of The Homeowner Defense Network. The HDN offers systems that help homeowners discover what programs they may or may not qualify for and why in less than a week. The HDN also has a trusted network of mortgage relief service providers, and offers a proven credit education program.

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