Because the Truth In Lending Act requires that predatory lenders pay the attorney fees when a homeowner seeks a loan settlement, the vast majority of case settle out of court. That’s money in your pocket. And it’s money in your client’s pocket too.
The first step to securing a fair and equitable loan settlement for your client is to request a forensic loan audit. The loan audit will give you the evidence, and the ammunition, you need to approach the lender with a renegotiation strategy. Since even the slightest miscalculation or paperwork discrepancy can often lead to fines for the mortgage company, they are all too willing to act when faced with the proper motivation.
Most lending institutions, when faced with the choice between paying hefty fines or lowering the payment of a client in distress will choose the latter. And since they’re paying your fees they will move and act swiftly. You will be a homeowner’s hero.
What’s the best foreclosure defense? It depends on who you ask. You can sell your home for 80% of value to an investor who will flip it for 100% and take your equity, but where does that leave you? Or you can pay a big lump sum payment to get your loan caught up, but will that really make your financial situation better?
When you consider that 83% of all mortgages contain lender violations in them, that makes the best foreclosure defense a loan modification. But to do that and be successful in the long run, you should first seek a loan audit from a competent loan auditor.
A forensic loan audit is a process of looking over your mortgage documents to ensure that your lender complied with all local, state, and federal laws. Even a slight error can sometimes be enough to leverage your position against your lender and force a renegotiation of your loan terms. So if you are facing foreclosure, don’t sell. Get a loan audit and let your attorney do the rest.
Is your mortgage unbearable? Do you find making the payments harder and harder every day? If so, there may be relief.
It’s a known FACT that 83% of all mortgages have lender violations. And many of those violations could result in hefty fines for the lender. The lender would rather renegotiate your loan payments than to have to pay you back your back interest, which is the penalty for many violations, AND pay a fine on top of that. It just makes more sense for the lender to renegotiate your loan and help you get your payments to an affordable level.
That said, the only way you can tell whether or not you have lender violations in your mortgage contract is to get a forensic loan audit. A forensic loan audit consists of a professional review of your mortgage documents to see if your lender followed all the applicable local, state, and federal laws concerning your type of loan. Even an innocent error by your mortgage company can be a costly mistake for them. That’s why uncovering even a simple error could be your best ammunition for renegotiating your mortgage contract.
Too many homeowners make the mistake of thinking they couldn’t qualify for a loan settlement if they are not behind on their payments. You don’t have to be behind on your mortgage to get a settlement. If you are in upside down and owe more than your property is worth but have never missed a payment, you could still qualify.
Here’s a simple fact to remember: 83% of all mortgage loans have violations in them.
What that means is you could still qualify for a loan settlement even if you’ve never missed a payment. Even if you have bad credit. And it doesn’t matter whether you have an adjustable rate or a fixed rate loan. What matters is whether your mortgage lender has followed all the applicable laws.
To find out if you can qualify for a loan settlement or if your mortgage has lender violations, contact a qualified loan auditor today.
More and more homeowners are finding themselves in need of a good foreclosure defense plan. Unfortunately, too many of them go in without a plan and base all their homeownership dreams on hope. That’s why they end up with no home and no credit. You don’t have to let that be you or your client.
A good foreclosure defense must be waged using the proper tools. And there is no tool as indispensable as the forensic loan audit.
Whether you and your client are seeking a loan settlement through direct negotiation, a loan modification by mediation or arbitration, or you are going the litigation route, you’ll need to first gather up your ammunition and that means getting the information you need to approach a lender with the right attitude and the data that will get them on your side. No lender wants to go to court. That is costly and time consuming. So if you order your loan audit before you start discussing your client’s situation with the lender then you’ll improve your chances for success by 80% or better.
A reputable mortgage company will perform its own loan audit before the paperwork is signed. It just makes sense. Otherwise, they’ll be hearing from us.
So what is a loan audit?
A loan audit, simply put, is a review of your mortgage documents to ensure that they comply with all relevant local, state, and federal laws. A borrower must receive certain notices on a specifically defined time frame depending on the type of mortgage applying for. If the lender fails to provide these notices then you have a right to rescind your loan in many cases and could be entitled to a refund of your payouts.
It’s not a difficult process getting a loan audit. Your loan auditor should tell you right up front how long you can expect to wait to get your results in and how long the entire process should take beginning to end. That’s not to say you can know for sure the exact length of your situation (they all vary), but a general idea is a good start. If you think you may need a loan audit then contact an attorney and request one.
If you’ve been hit with an emergency crisis situation that has made paying your utility bills difficult and placed a strain on your mortgage financing then a piece of legislation known as LIHEAP - Low Income Home Energy Assistance Program - could help you save your mortgage and keep your house.
Many families who have been through a natural disaster or other emergency have difficulties afterwards paying their bills, including utilities and the mortgage. The rising cost of energy coupled with the strain on the family’s budget caused by the disaster, with necessary repairs and medical bills to pay, can add stress where it isn’t welcome. That causes families to make hard decisions about which bills to pay and which ones to pay on time. The problem is, creditors are forgiving only for so long. You can’t sacrifice your mortgage to save the utilities and you can’t ditch the utilities to keep the mortgage. What kind of life would that be?
So LIHEAP is a federal program that offers assistance to low income families to pay their utility and energy bills. That frees up your income to pay for the mortgage. But what if things are still challenging?
You may be able to go to your lender and request a hardship modification. Some lenders will work with you and help you save your home because they realize that if they don’t they will just end up with your property on their books, a liability, when they can help you stay in the home and be an asset for them.
If you find yourself in such a hardship situation, speak with your attorney and see if there is a way to approach your mortgage company and request a loan modification. If worse comes to worse, use your ace in the hole - a forensic loan audit.
