If you are involved in a foreclosure proceeding, you should hire a foreclosure defense attorney to conduct a mortgage document review (also known as a forensic loan audit) to help you with your legal defenses to stop the foreclosure proceedings and to negotiate with your lender. In order to conduct the review, your attorney will need copies of the following documents:
- Loan documents
- Receipts or cancelled checks documenting your loan payments
- Written correspondence between you and your lender
The purpose of the review is to determine if you are a victim of a wrongful foreclosure. Only your foreclosure defense attorney is qualified to conduct the review. The attorney is an expert in foreclosure and mortgage laws. The attorney will advise you of the best course of action to take if your lender has violated any mortgage lending laws or if there are any illegal provisions in your loan documents.
Common Lender Violations
The attorney will interview you to find out about the conduct of your loan officer or mortgage broker to determine if they mislead or gave you false information at the time they processed your original loan or refinance. Common lender violations that may be discovered during a forensic loan audit include:
- Real Estate Settlement Procedures Act (RESPA) violations
- Truth-in-Lending (TIL) Violations
- Homeowner Equity Protection Act (HOEPA) violations
- State Predatory Lending violations
- Good Faith Estimate/HUD 1 violations
- Misleading or false statements or misrepresentations by your lender or mortgage broker
- Omitted disclosures
- Fraudulent property appraisals
- Falsified loan application or supporting documentation
- Forgery
- Violations of State Usury Law
Your attorney will give you a written report on whether there are any irregularities in your loan documents. The attorney will also give you a written opinion and discuss foreclosure defenses that may be available to you. If your lender violated any laws, you may have the right to rescind your loan and collect damages. The attorney can also use the information as leverage to get your lender to negotiate. The attorney may also be able to stall for more time so that you can stay in your home longer and not have to pay any mortgage payments while negotiations are going on.
Obtain Help from an Attorney
Hiring a foreclosure defense attorney to conduct a mortgage document review is one of the best ways to determine if your lender filed a wrongful foreclosure action against you. The attorney can assist you negotiations with your lender and represent you in court. An attorney can explain the foreclosure and mortgage laws to you, and advise you of all your options to save your home from foreclosure.
