The newest and latest foreclosure rescue scam that homeowners facing foreclosure should watch out for is a foreclosure audit scam. Crooked companies are going around to distressed homeowners offering then a forensic loan audit of their mortgage documents and asking for a large upfront fee. They make false promises that they can save your home from foreclosure and negotiate with your lender. While a forensic loan audit is helpful for homeowners who are facing foreclosure, these companies are not qualified to conduct a proper audit. They use former real estate brokers, mortgage brokers or other personnel who have no training in conducting forensic loan audits. They can easily fool you because they sound like they know what they are doing. While all they are really doing is scamming you and taking your money. Don’t be fooled into thinking they are going to save your home from foreclosure. The truth is that you could end up losing your home because they will waste your time and cause you further hardship and stress.
What to Watch Out For
Here are some sure signs that a company is conducting a foreclosure audit scam against you:
- They pressure you into making a decision to hire them.
- The want a large upfront fee before they start the work.
- They won’t answer any questions or give you a written list of the services they are going to perform for you.
- They don’t tell you how long the process is going to take.
- They won’t provide you references or tell you how many successful audits they have conducted that have obtained positive results for their clients, or they lie about it and provide you with fake testimonials and references.
- Do not offer you a money back guarantee if they fail to perform.
- They don’t have physical address.
- Their telephone number is disconnected shortly after you hire them.
A legitimate forensic loan audit should only be performed by a foreclosure defense attorney because the attorney is an expert at foreclosure and mortgage laws. The attorney uses trained auditors under the attorney's supervision to conduct the audit. The attorney reviews the results, and will put them into a written report for your review and give you a written opinion.
Benefits of a Forensic Loan Audit
Lenders know that they can face still fines and penalties for violating lending and disclosure laws. If your audit reveals that they have in fact violated these laws, your lender will be more apt to stop the foreclosure and work on a solution to help you save your home. Options may include a loan modification, refinance, reinstatement, forbearance, short sale or deed in lieu of foreclosure. The audit makes it easier for your attorney to negotiate more favorable terms for you.
Consult with an Attorney
You can avoid a foreclosure audit scam if you are aware of what to watch out for. Consulting with a foreclosure defense attorney is one of the best ways to get help because the attorney is an expert at forensic loan audits and other foreclosure defenses. The attorney can negotiate with your lender, and represent you in court.
