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How a Forensic Loan Audit Can help in Foreclosure Proceedings

Written by: Lori I Barkus

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Posted over 2 years ago. Applies to Broward County, FL, 4 helpful votes, 0 comments

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How can a forensic loan audit help you

The loan audit will provide a summary of any violations of state or federal law, fraud, misrepresentation or any excessive fees that were charged to you. If any of these are present, the lender may be responsible for damages or may face the other legal consequences. If you are trying to modify your loan, chances are that the lender is giving you a hard time, either by not returning calls, giving you different information every time you call or just delaying the process. Most lenders are not modifying loans and it appears that they do not want to. However, when a borrower presents the lender with evidence of loan violations, the lender is usually more willing to talk to the borrower about modifying the loan.

Should you get a forensic loan audit if loan modification is not an option for you?

Even if our clients are not attempting to modify their mortgages, either because they cannot pay or because they have decided that foreclosure is the best option, we still recommend a forensic loan audit. Even if you are going through foreclosure or negotiating a deed in lieu of foreclosure or a short sale with the bank, having information about loan violations helps you make a better settlement with the bank. Remember that foreclosure may not be over when the bank takes back your house. The bank can still get a judgment for the rest of the money you owe on your mortgage and can try to collect it from you 5 or 10 years later. You want this process to be over and do not need any surprises down the road.