subject: The Process Of Obtaining A Loan Is Highly Regulated. [print this page] As foreclosure rates are outpacing the modification rates, homeowners are seeking all sorts of recourses available to them to save their homes. Either through loan modification, forbearance plans or payment plans owners are finding solutions to their mortgage problems. One recourse that is not often mentioned is the Forensic Loan Document Audit.
Obtaining approval for a mortgage is a very complex process. When purchasing a home you have a number of parties involved, including realtors, mortgage brokers, lenders, appraisers, title companies, surveyors, etc. The process of obtaining a loan is highly regulated from state to state as well as by the U.S. Federal Government. Therefore, all mortgages must have a paper trail beginning with the loan application and continuing all the way through to the closing.
When you apply, you fill out an application and sign several lender disclosures which we probably don't even read. By law, certain disclosures are to be given to the borrower within certain time frames and the final numbers must be consistent with those originally quoted. Along the way, there could be a number of errors which you are never informed of. Inspecting the loan paperwork and discovering these errors are what a Forensic Loan Document Audit is for.
This audit can be very helpful in negotiating with your lender. The audit examines all the paperwork you received in connection with the loan. If you employ the services of a loan modification company, ask them about this audit. If they tell you it's not necessary, or give you vague information, start looking for another modification professional to handle your paperwork.
During this type of audit, the auditor will look for Federal Law violations. Do your final documents match your initial ones? Were you provided the proper disclosures within the specified legal time periods? Were you the victim of Predatory Lending? Did your broker overcharge you?
These are just a few of the items that the auditor will examine. Should any violations have occurred, your attorney can suggest a proper course of action you can take. In any event, it will help you get a better deal from your lender who doesn't want any additional litigation expenses.
by: speedin
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