A forensic loan audit of your mortgage loan documents may reveal lender violations that your attorney can use as a foreclosure defense to stop a foreclosure proceeding against you by your lender. Only a foreclosure defense attorney is qualified to conduct a forensic loan audit review of your loan documents. Your attorney will need to review the following documents:
- Your mortgage loan documents
- Copies of proof of payment of your monthly mortgage payment
- Any written correspondences or notices between you and your lender
The attorney will also need to conduct an interview with you to find out about the conduct of your loan officer or mortgage broker at the time you received the loan. Lenders and mortgage brokers must follow the lending disclosure and mortgage laws, or they are subject to fines and penalties. If your attorney finds violations or irregularities, you may have the right to rescind your loan and collect damages. This information will also help your attorney with negotiations with your lender to stop a foreclosure against you and to find another solution to save your home.
Violations
The following is a list of common lender violations that your attorney may discover while reviewing your mortgage loan documents:
- Truth-in-Lending (TIL) Violations
- Real Estate Settlement Procedures Act (RESPA) violations
- Homeowner Equity Protection Act (HOEPA) violations
- Predatory loan practices and violations
- Violations of Good Faith Estimate/HUD 1 disclosures
- Misrepresentations or false or misleading statements
- Did not disclose pertinent information regarding your loan terms, interest rate, etc.
- Fraudulent or inflated property appraisals
- Falsified loan application and/or supporting documentation
- Forgery
- State Usury Law violations
After the forensic loan audit, your attorney will present you with a written report for your review. The attorney will also give you a written opinion and advise you how to proceed to get your lender to stop the foreclosure proceedings. Typically, the attorney can stall the foreclosure and start negotiations to find you a solution either for you to keep your home or to walk away from your home not owing your lender any money. During the negotiations, you can still live in your home, and you probably won’t have to pay your lender any money either. The attorney will be able to negotiate a loan modification, forbearance, short sale, deed in lieu of foreclosure or some other option that is agreeable to you and your lender, so your lender will stop the foreclosure proceedings.
Hire an Attorney
A foreclosure defense attorney can conduct a forensic loan audit to determine if your lender has committed any lending violations or committed predatory loan practices. The information revealed from the audit can be useful in determining if your lender has filed a wrongful foreclosure action against you. The attorney will be able to negotiate with your lender to get the foreclosure proceedings stopped and to find another option for you to save your home from foreclosure.
