When a loan is either being created or restructured, a process called mortgage auditing may occur to ensure that the loan lies within what is allowed by law. When an audit takes place, it proves or disproves that the loan and its terms are legal, according to the guidelines set out in Truth in Lending Act, Fair Lending laws, and other US lending legislation. Loan audits may be preformed by the lender in-house, but a borrower has a right to request an audit from a specialist or lawyer. From the results given by am audit, it will be determined if the mortgage is legal, and if not, the sections that do not comply will be shown. For both parties, making sure that the mortgage is legal is quite an important matter - the lender needs to protect themselves and the borrower needs to protect their property. In the event of a foreclosure, a loan audit can be especially important, particularly to the homeowner involved. If a mortgage is determined as illegal, the audit will serve as grounds for wrongful foreclosure, opening the possibility for the foreclosure to be legally avoided.