Why Perform A Forensic Loan Audit?

Forensic Loan auditing is necessary to determine mortgage loan enforceability in the event of predatory lending or fraudulent mortgage practices

. There are several reasons a law firm or mortgage modification company would perform a forensic audit.

Performing a forensic audit demonstrate to clients that the company employs a team of professionals who are diligent and thorough in pursuing all available remedies and solutions. The findings in a forensic audit are a critical part of understanding the borrowers situation and negotiating an appropriate workout. Violations of mortgage guidelines or proof of mortgage fraud or unfair practices will compel a lender to modify a loan even if the borrower does not qualify for loan modification.

Performing a forensic audit indicates a company is providing expert services to distressed homeowners rather than one who is operating a foreclosure rescue scam. Federal and State agencies are cracking down on loan modification companies who prey on people who are facing foreclosure by charging high fees for minimal service. When a company performs a complete forensic audit, by reviewing a mortgage file for compliance with consumer protection laws, they are providing something of value to their client.

A company gains the attention and respect of loss mitigation departments when they do their due diligence and perform a complete forensic loan audit. It shows lenders and mortgage servicers that the borrower is being represented by a competent professional who intends to negotiate a solution for all parties involved. When a distressed homeowner is able to keep their home with more affordable loan terms and a lender mitigates their losses, everyone wins.

The most important reason to perform a forensic audit is to gain leverage for negotiating with the lender or servicer. Any violations of mortgage guidelines or consumer protection laws relating to the mortgage will motivate a lender to modify the mortgage. Depending on the violation, a borrower may be entitled to compensation including the right to rescind the loan, stop the foreclosure process, reduce the principal balance, lower the interest rate or modify the mortgage terms for a more affordable and sustainable loan.

A forensic audit is a powerful negotiating tool for mortgage modifications. Material violations in the mortgage industry are not uncommon; in fact, over 80% of federally supervised banks have that were making loans at the peak of the mortgage boom were cited for compliance violations.

This article was written by Ralph Mark Maupin, a real estate professional who has been in the industry for over 25 years. County Loan Modification has helped distressed home owners in South East Michigan keep their homes by modifying their mortgage to an affordable and sustainable loan. Through diligent representation of homeowners, they negotiate a modification or resolution with lenders. Learn more at http://www.countyloanmod.com

by: Nichole Jackson

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