Forensic Loan Audit

Doug Willis in Pasadena California waxes poetic about loan modification attorneys sticking it banks and predatory lenders. He says one thing that is many homeowners may take out of context or not understand at all. But there is truth in it.

A successful outcome can reduce your mortgage balance to 90% of the appraised value and also secure a market interest rate on the new balance.

He’s talking about a successful outcome on a loan modification attempt. If your client is like most homeowners, he is upside down on his mortgage. His interest rate is through the roof and his monthly payments are so far out of reach that he can’t see the fingers. He may even owe more on the house than it’s worth due to declines in real estate values. Of course, the banks will argue that isn’t their fault.

To be fair, the banks don’t have control over market value, but they can control approving loans for people who can’t afford the terms. And that’s where the loan modification is necessary. The loan audit comes in when you are looking for reasons to start a modification negotiation. Without the loan audit you may not succeed.