subject: Forensic Loan Audits And Reducing Mortgage Payments [print this page] Forensic loan audits are not just weapons that attorneys and mortgage modification services use to stick-it-to the bank. They are actually very good tools for the negotiation process when a distressed homeowner is facing foreclosure and they wish to modify their loan terms to have a more affordable and sustainable mortgage.
Of course, finding and pointing out the errors do help provide leverage for the loan modification negotiations. Errors in calculation or violation of borrowers rights, even if unintentional, are liability issues to the mortgage lender. They are grounds for siding with the distressed homeowner, should they end up suing in court. In most cases, a lender will be compelled to modify the mortgage so everyone comes out a winner.
If a homeowner who is facing foreclosure can show that they would be able to afford to make their mortgage payments if the loan was modified, it is in the best interest for the lender to agree. This is especially true in the case where the homeowner owes more than the house is worth; if the lender forecloses, he will likely have problems selling the home and coming out whole.
There are several ways in which a loan can be modified to make the terms easier for the borrower. They can reduce interest rates and/or increase the mortgage term to calculate a lower monthly mortgage payment.
To be fair, that doesnt mean that everyone who is upside down on their mortgage should run out and get a forensic loan audit. The banks have no control over the decline in market values; however, they can control approving loan modifications for people who cannot afford the terms of their current mortgage.
This article was written by Ralph Mark Maupin, a real estate professional who has been in the industry for over 25 years. My Mortgage Auditor is the industry leader in forensic auditing and mortgage modifications to help people keep their homes. Their greatest asset is their reputation; their goal to help homeowners, attorneys and loan consultants negotiate a winning solution for all parties involved. http://www.mymortgageauditor.com serves consumers in Oakland, Wayne and Macomb Counties in South East Michigan.
by: Nichole Jackson
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