Homeowners need to be on the lookout for fraudulent forensic mortgage loan audits from crooked loan modification companies. These companies are not qualified to conduct mortgage loan audits, and will just take your money and do little or no work that is of any value to you. Since the government has cracked down on fraudulent mortgage modification scams where disreputable companies ask for large upfront fees, these same crooks are now trying to get around the laws by offering fraudulent forensic mortgage loan audits to vulnerable people trying to save their homes from foreclosure. You should be aware if you are approached by one of these companies that they may be crooks. There are some reputable companies that perform mortgage loan audits for attorneys. It is recommended that you consult with a foreclosure defense attorney to find out more about mortgage loan audits.
Red Flags
Here are some warning signs that you should look for that signal a company is probably conducting fraudulent forensic mortgage loan audits:
- They ask for a large upfront fee
- Over promising that they can obtain results for you
- Not answering your questions
- Not willing to provide references
- Don’t give you a list of services they are going to perform for you
- No money back guarantee if they fail to perform
Avoid hiring one of these companies because you could end up losing your home.
Forensic Loan Audit-Will it Help?
The only person who is qualified to conduct a forensic loan audit for you is a foreclosure defense attorney. The attorney is an expert at reviewing mortgage documents and understands the laws and can represent you in court. A forensic loan audit is merely a foreclosure defense method that your attorney uses to get your lender’s attention to stop a foreclosure proceeding and negotiate with you to find a solution to save your home. If the audit is conducted property, it will work, and is quite effective in achieving the results you want such as a mortgage modification, reinstatement, refinance, forbearance, deed in lieu of foreclosure or short sale.
When an attorney conducts a forensic loan audit, the attorney is looking to determine if your lender committed predatory loan practices against you or violated mortgage lending and disclosure laws so the information can be used as leverage when negotiating with your lender. If the audit reveals that your lender did in fact violate the laws, your lender can be fined and penalized. Also, you may have the legal right to rescind your loan and collect damages. While it is not practical to do so because you would have to give back your home, it puts you in a stronger negotiating position. Your lender will be much more cooperative and willing to work with you.
Hire an Attorney
The best way to make sure you don’t become a victim of a fraudulent loan audit is to hire a foreclosure defense attorney to conduct the audit for you. The attorney is skilled and experienced at reviewing mortgage loan documents to find irregularities or violations committed by your lender. The information will help your attorney negotiate a more favorable outcome for you.
