Supporting, Informing & Connecting People in Foreclosure

Do forensic loan auditing companies that find & report loan violations work to get lenders do a loan restructure?

I'm checking into hiring a forensic loan auditor. loan violations myself. I'm sure there will be many (it was a 2004 refi w/ WaMu). There are many auditing companies contacting homeowners now. Having an audit in hand showing violations to use as leverage makes total sense, but......

My questions for you all are:

1-Is an audit showing many loan violations serious enough to a lender so that it's leverage to get them to work with you finally? According to the audit companies I've talked to so far, once Chase gets the audit report, they'll be begging me to do a workout (ha,ha), because the bank has to pay serious fines.

2-If so, how do you find the best audit company for your money? (because they all seem to charge up front fees - $600-$2000)

Also, what these audit companies don't make clear is that they do the audit, but don't go to your lender for you to handle the loan negotiations. So if your lender doesn't come begging to you, your options are:

1-go to your lender again after they've received their copy of the audit to convince them to do a workout (but unless the audit is something they take seriously and it gets you to a senior person at your lender's that can actually do something, then all you have is an audit showing violations, but are still in the same "getting nowhere zone".

2-hire an attorney to do the loan workout negotiations, because now they have something to show when they go. (The audit companies say they have a list of lawyers they can refer you to for additional fees, of course). And then how successful have the attorneys been that have done that? And are there any out there that have?

Okay, sorry so many questions. I want to get something done not just spend time filing complaints.

Please any feedback will help!!

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Permalink Reply by taran harraghy on February 8, 2011 at 5:02pm

Thank you for you in depth response. I have a few questions that might seem like I'm jumping the gun, but if it turns out that they're not pertinent to my situation, they might be of help to someone else.

1-If a home owner does pre-qualify, has the 3 step audit done, and violations are found, how seriously do the various big bank lenders view it, i.e. does it have a large enough effect to make a lender obligated to review and correct the violations with a new mortgage? I know they can be liable for fines.

2-With the audit results, what process does a homeowner have to go through afterwards?

3-Does a homeowner then have to go through the courts and use the audit to sue the lender to get results (or not)? What if they are facing foreclosure?

I realize everyone's situation is different, but I'd like to have some idea if being presented with an audit with violations actually effects lenders or is it just a minor inconvenience to them? Bottom line is, I guess, is an audit worth doing?

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Permalink Reply by taran harraghy on February 8, 2011 at 5:13pm

al-righty count me in. What do I need to do?

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Permalink Reply by Sandy on February 9, 2011 at 11:40pm

I would like to conference in on the call concerning audits.

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Permalink Reply by Kim on February 13, 2011 at 1:00pm

Is there a way that I can also find more information on what an audit could do to save my home?

Thanks, Kim

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Permalink Reply by taran harraghy on February 13, 2011 at 7:41pm

Just wanted to mention that I was at the previous webinar. Definitely sign up if you've been searching for help!!

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Permalink Reply by Andrew Lehman on September 14, 2011 at 3:53am

To solve your query about the forensic loan auditors please go for CFLA Andrew Lehman where you find the each and every solution.

Thanks

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Permalink Reply by JE on September 21, 2011 at 12:03am

No there is no proof that getting a forensic examination will help you get a modification. Understand what you are getting. Ask lots of questions.

You have to understand that according to the 424b(5) prospectus which contains the

governing documents along with the verbage which stipulates if and when a modification can

even be done at all. You have to understand that anything that would change or alter the benifical

stream of income to the certificate holders is not accepted. The only way that they will give a true modification which will affect the principal amount along with the interest rate is if the servicer were to repurchase the loan our of the trust at the current amount that is owed and that will not happen. Who would purchase a asset that was worth less than was owed. I read these prospectus's every day and this is what is said in everyone of them.