Loan modification attorneys are special people. You help people keep their homes and get them at affordable mortgage rates so that they live within their means. In the worst cases you are up against some tough predatory lenders. And if you have the right tools at your disposal you’ll beat them. Here are some loan modification terms you should know in order to win in court and at the negotiating table:
- Loan Modification - Any change to an existing loan, usually that is favorable toward the borrower.
- Loan Settlement Statement - A document given to a borrower at closing that shows all disbursements being paid to all parties involved in the transaction.
- TILA - Truth In Lending Act. Passed in 1968.
- Regulation Z - A part of TILA. Most often cited for its right to rescission for the borrower.
- HOEPA - Home Ownership And Equity Protection Act. Affords protections to consumers of high interest and high fee loans.
- RESPA - Real Esate Settlement Procedures Act. Protects consumers of loans on HUD homes.
- ARM - Adjustable Rate Mortgage.
- Loan Auditor - An individual who does not represent either party to a loan transaction, but is capable of reviewing loan documents and finding lender violations
- Lender Violation - Any law that a lender has broken intentionally or unintentionally while servicing a loan.
- Mortgage Document Review - An independent review of a homeowner’s mortgage documents and analysis regarding whether any lender violations exist.
- Forensic Loan Audit - A thorough, scientific investigation of a loan to determine whether a lender has violated any federal, state, or local laws in the servicing of the loan.
- Foreclosure Defense - A strategy used to help stop the foreclosure process before the homeowner loses her home.
These are just a few of the terms a loan modification attorney should be familiar with in order to help homeowners keep their homes and save their mortgages. Hope it helps you succeed.
Litigating a loan settlement claim can get sticky without the right documentation. When you enter into court on behalf of your client you want to have all of the documentation necessary to present your case and get a win for the client. That means uncovering any lender violations that give your client the right to rescind their loan. How do you find that information out? Should you wait for the discovery phase of your court case?
Waiting can be detrimental to your client and to your reputation as a tough lawyer. You need to know the facts before you enter discovery and the best way to get down to the core of your client’s case is to order a forensic loan audit.
The forensic loan audit can tell you several things about your client’s mortgage, including:
- Is it an FHA or non-FHA loan?
- Are there TILA violations that can give your client rescission rights?
- Is it subject to HOEPA law?
- Does the loan provide your client with a net tangible benefit?
- Did your client’s mortgage company make any substantial material claims or misrepresentations that caused your client to enter into a loan that is detrimental to their welfare?
And it can do a lot more. This is just the tip of the iceberg. Bottom line, if you are litigating the case and expect to win, you’ve got to know who your client is doing business with and how they are doing business. The forensic loan audit can tell you that.
Learn more about lender litigation strategy now.
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.
An article by Anthony M. Flores outlines which U.S. states have the highest foreclosure rates. Interestingly, the largest states have the highest rates, including:
- California
- Ohio
- Texas
- Virgina
- Michigan
- Illinois
- and Georgia
I’m surprised that New York isn’t on that list. But Nevada is.
So what can you do if you are facing foreclosure?
I’d recommend that you hire a professional loan audit and attempt to modify your loan agreement with your lender.
The loan audit will provide you with the necessary evidence to approach your lender and ask for equitable loan terms. Get out of that high priced mortgage and into one that is affordable and fair. Your loan auditor is the one who can help you do that effectively.