Everyone is aware of our economic crisis, and nationwide residential home foreclosures are having a devastating impact on our financial system.  Congress has stepped in and tried to assist residential homeowners, but government programs help precious few.

The Forensic Mortgage Audit Gives Homeowners Vital Leverage

Whether you want to stop foreclosure and save your home, perform a short sale or simply refinance your existing mortgage, you have probably received little if any assistance from your lender.  It seems they hold all the control, and you are at their mercy.  Not so fast.

The Forensic Mortgage Audit is simply an investigation, one that analyzes all of your original loan documents to reveal common violations (of RESPA, TILA, HOEPA and others laws enacted to protect consumers) committed so frequently on loans written  from 2000 to 2008, roughly until the collapse of Fannie Mae and Freddie Mac.  Violations include failure to produce documents the lender is required to maintain (see RESPA), escrow errors, points charged illegally, missing signatures on key documents and predatory lending practices.

By confronting the bank with violations revealed in the audit you escalate your negotiation to a higher level of authority, resulting in a speedier solution.  A lawyer will likely gain you the best outcome by presenting the audit to the lender’s legal department – who will wish to avoid litigation over the violations.  If you are attempting a short sale the listing agent can present the audit, or if attempting refinance you can present the audit yourself.  In either case, demand to work with an executive with more authority than a loss mitigation rep or loan officer.

The audit will demonstrate to the lender that you are determined and prepared, and you can expect them to respond far more quickly than if you “go in unarmed”.  Your case will move from the bottom of a tall stack of files to a higher level of authority, who will likely wish to offer refinance assistance  to your best financial advantage.

Top Foreclosure States

The highest rate of home foreclosures are in areas where the market got most overheated, such as parts of Florida, Nevada and California.  These states also suffered from the most overvaluation of property; they have high vacancy rates and high jobless rates.  This combination is the perfect storm and will delay market recovery for the foreseeable future.

What We Need From You

We will review your current loan documents and financial situation.  Please gather as much of the following information as possible, take it to a copy shop and have them scan it onto a CD:

• A copy of your initial loan application and supporting documents, including any secondary loans on the property.
• All loan documentation including agreements and correspondence when you acquired property.  This is the package your title company or closing attorney gave you.
• Income tax returns & property tax records for 2 years following your home purchase or refinance.
• The most recent appraisal of the property.
• Any other correspondence the lender may have sent to you.
• Do not worry if you do not have complete documents.  The lender was required to maintain them, and we can assist you in recovering them as needed.

Anticipated Time Line

We will prioritize any critical issues to deal with and gather any additional documents needed to prepare your audit and case management binder.    We will then conduct and prepare your audit using all your loan documents.  We perform a complete underwriting analysis  to determine whether your lender has complied with all Federal and State specific laws.  These steps are often done within 5 to 10 working days, depending on how quickly you can provide us with documentation.  After we complete your audit and perform all the necessary paralegal work we will forward your case to you  and/or  Realtor or attorney.

Lenders are overwhelmed attempting to manage their portfolios and limit losses.  Time is of the essence, and it is imperative to act now, while interest rates are still favorable – and time is on your side.

“Speeding Economic Recovery, One Homeowner at a Time”