I find it amusing that so many in the mortgage business and the Loan modification business toss these terms around as if everyone knows what they are.  If you choose to attempt a loan modification on your own or with a competent professional it helps to know a little of the vocabulary that may be thrown your way.

So, let’s talk about a Forensic loan audit and why you may want to consider having one done as part of your home mortgage loan modification.

If you’ll wind the clock back 4 or 5 years ago – really up until the current financial crisis began, banks, lenders, and mortgage brokers were very relaxed in their compliance with federally mandated guidelines for lenders.  If your loan was created during this time period there was almost a 100% chance that it violates one or more laws relating to RESPA, TILA or Section 32. Not just the little banks – the big boys like Wells Fargo, Litton, AHMSI, PMC, GMAC.. and many others – were very relaxed in their interpretation of their compliance to these existing laws.

As a consumer, it’s not reasonable that you would be expected to know or be aware of all of the laws that pertain to lending… you went in your for mortgage closing and your title company, or they came to you, showed you where to sign and told you life would be great after you were done.  You relied on their expertise as a professional to obey the law.

When an experienced attorney performs a Forensic Audit on your loan they will review all of the documents you were presented with and signed at the time your loan was created.  They examine whether or not you signed the right documents, audit the math, examine the loan terms, perform a test to see if there was anything misleading about what was presented… etc.  When the attorney has completed the forensic audit they’ll provide you with a report of their findings.

Understand this, in sever situations, mortgages can be wiped out completely because of violations and infractions of lending laws.  So banks take the results of these audits very seriously.  If you’re in a situation where you are trying to do a mortgage loan modification a forensic audit can be your best friend – especially when the bank you are working with won’t play ball.

You’ll find that prices will vary from different legal firms as to their fee for a forensic audit.  I know attorney’s that specialize in forensic audits and they cost about $900 for the service.  In our company we perform forensic audits at no extra charge for our loan modification clients when banks are being stubborn – from experience they are VERY effective in obtaining a favorable outcome for loan modifications.

If you’re trying to do a loan modification on your own this may be a great place to start.  If you need a referral please e-mail the author and I’ll put you in touch with an expert in the field.  If you’re using a professional to help with your home loan modification be sure they have the forensic audit tool in their arsenal.

If you know you need a loan modification our team would love to help – we use forensic audits regularly – to obtain the best possible outcome for our clients.  Check us out at SureFast Loan Modification.com or (800) 510-1859 for faster service.