Forensic Loan Audit

Lenders in violation of the Truth In Lending Act are not always nefarious scoundrels and unscrupulous snakes. Sometimes a mortgage company simply miscalculates a finance charge and that miscalculation becomes a part of your mortgage documentation. It may not even be found for years, if at all.

Nevertheless, it could mean a refund of all of your finance charges if it is found.

Even if the financial error is a mere $25, you could end up with a refund of your interest payments even if you’ve paid in thousands of dollars in finance charges. With your right to rescission you can make a right wrong, but you should prepare yourself with a second mortgage because if you win your case and your loan is rescinded you will still have to pay the principal balance on your home.

Let’s say, for instance, that you buy a house for $250,000. After two years of making steady payments you’ve paid out $27,000 in interest. You’ll still be in the hot seat for the principal balance of the home so subtract your interest refund from that - $223,000 - and you’ll need a new loan for that amount. You’d better have that lined up with a new lender before the end of your day in court because once the loan is rescinded, it’s a done deal.

This is where you need to seek legal counsel. And make sure you choose an attorney who specializes in loan modifications.