Forensic Loan Audit

A forensic loan audit is an essential tool for a loan modification attorney. But not all of them are created equal. You can’t make a decision based on price alone. There are some essential elements to an effective loan audit that you should know before you purchase one. Here’s a short list of things to look for in your next loan audit:

• Your loan auditor should not promise to uncover lender violations; it’s not a guarantee that can be kept.
• A good loan audit is comprehensive and involves a review of every document in your client’s mortgage contract.
• A loan audit should be forensic; that is, scientifically conducted.
• Should be performed by human eyes, not a computer.
• Mortgage documents should be reviewed and compared to all relevant and applicable mortgage case law.
• Your loan audit should be in writing with an analysis indicating problem areas that your client should know about.

In the end, your loan audit should give you a clear indication on how best to proceed with negotiations for better mortgage terms for your client. If it doesn’t do that then you’ve paid too much for the loan audit at any price.