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Forensic Loan Audit


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A forensic loan audit is conducted by a qualified forensic loan auditor to see if there were any Federal or State law violations performed by the lender or broker. It is highly recommended for borrowers to obtain a Forensic Loan Audit prior to achieving a successful Loan Modification.

 

Why Do You Need A Forensic Loan Audit?

 

During the property boom years of 2002 to 2006, many loans were funded with legal violations. It is believed that majority of the loans funded during this period have significant Federal and State violations as a result of greed, negligence or just innocently overlooked by the lender. These violations carry extremely tough penalties and can result in serious legal consequences for the lender. If found guilty, the lender will be forced to refund or pay the borrower back all interest paid to date.

 

For example, if you have paid your lender $30,000 in interest for the past 2 years on a loan that was unlawful or had Federal and State violations, your lender if found wrongful, could be forced to return the $30,000 back to you. Loans that contain illegal terms, conditions and provisions that violate both Federal and State law are not enforceable. When the legal system discovers that there is a flaw in your loan, all foreclosure proceedings will be brought to a halt.

 

The solution to discovering whether your loan contains any Federal and State violations is through a Forensic Mortgage Loan Audit. This is usually performed by an attorney with a specialized team of legal experts. The audit will involve a thorough study and examination of all your loan documents. When the audit is completed, you will receive a detailed report indicating a list of all the violations (if any) identified in your loan documents.

 

Please note that prior to having your lender modify your loan, it is critical for you to be aware of any existing violations within your loan documents. This is the secret to obtaining a successful loan modification. Once you are aware of the legal violations performed by your lender, it will you provide you facts and legal leverage against your lender. This will ultimately raise your stakes in the negotiation process to obtaining a loan modification. The more severe the violations are, the higher the chance you have in obtaining a modification.

 

In a cap, the forensic loan audit will not only examine the original paperwork, legal documentation and disclosures but also your personal finances to determine whether your lender or broker have committed anything unlawful during the loan process. This will ultimately help determine if the loan is at all even legal.

 

If you cannot afford your mortgage payments or in foreclosure and in need to get a loan modification, the smarter route is to first arm yourself with a forensic loan audit to prove unlawful wrongdoing by your lender or broker. This will give you an added advantage to obtaining a favorable loan modification.

 

Scam Beware

 

It has been reported that more than 500 firms have emerged offering forensic loan audit services since the housing crisis started. Many of these firms are not certified to provide such services and have lured many innocent homeowners into paying hundreds of dollars in order to get their loan modified. They market themselves using legitimate slogans such as ‘Forensic Loan Auditing’. Troubled borrowers need to be aware that in order for these firms to provide such services, they need to be certified in the field of forensic accounting or a Certified Public Accountant (CPA) who holds a certification in forensics.

 

Consumers should be suspicious of forensic loan auditing services offered at incredible low prices. Beware of firms or individuals offering forensic loan auditing services who have not earned a degree in accounting or finance and using dubious software that are inefficient in truly capturing errors on your loan documents. The market rate of getting a forensic loan audit from a certified accountant is a few hundred dollars more than a non-certified accountant. The real difference is that an experienced certified accountant in forensics is able to discover a variety of errors unlikely detected by a non-certified accountant using software programs.

 

It is absolutely critical for attorneys, lawyers and loan modification firms to be cautious before entering into a legal agreement with an unqualified forensic loan auditor. This can subject attorneys, lawyers and loan modification firms to be enormously liable to their client if they discovered that errors were not reasonably found when they should have.

 

If you are currently working with an attorney, law firm or a loan modification firm, be sure that they are hiring or utilizing a certified forensic auditor. If they are not, request for one. At the end of the day, the greater errors identified in your loan documents will arm you with more powerful ammunition into negotiating with your lender and thus ultimately securing your home.