Back in early 2007, I was one of the first people in the world to discover the forensic mortgage audit as a legal “tool” for lawyers to help defrauded and struggling homeowners get relief on their home loans. When used properly by a competent and licensed attorney, the mortgage audit can be very effective in obtaining a loan modification or short sale.
What is a forensic mortgage loan audit?
The goal of the mortgage audit is to identify if the consumers legal rights have been violated via the Truth in Lending Act (TILA), Real Estate Settlement & Procedures Act (RESPA) violations and or mortgage fraud is found to mediate a favorable loan modification for the homeowners who’s legal rights were violated.
One of the first articles I wrote in early 2008 was widely read on the internet. Unfortunately, in my attempts to educate consumers, these articles were used by unsavory and unoriginal out of work mortgage brokers who used this information to dupe uneducated homeowners out of their last few hundred dollars.
In early 2009, the loan modification business was virtually shut down by legal authorities across the nation. Some fraudulent loan mod chop shops were shut down and other scammers morphed into loan auditors who maybe also running debt consolidations scams.
When millions of American homeowners faced the real estate crisis in 2008, companies offering “loan modifications” and “foreclosure rescue” sprouted like weeds. Yes, “some” of these companies were legitimate, but many were not and they ripped of tens of thousands of struggling Americans across the country.
So, what happened in 2009 when the new laws came in and shut many firms down?
What happened was that we had a sudden influx of forensic loan audit companies in scammers effort to evade the upfront fees that state officials across the country have prohibited them from charging. Many of these loan audits are being performed by the same kitchen table top scammers from the loan mod days. This is just simply the new scam of the week.
While mortgage audits can be very helpful to homeowners, regrettably, not all of the available companies are qualified to provide audits. Most loan audits these days are performed and offered by people without any legal training in the field or attorney backing. They simply input data into a software program lenders and financial institutions are using as their compliance checklist against state and federal policies and regulations. They then hand the homeowner a worthless audit and leave them to fend for themselves.
Before I started my company in 2007, I had worked for a law firm for 6 months performing audits and working side by side with lawyers. Many of the greedy mortgage people today and in the past read my blogs in order to gain intelligence for their own selfish needs. Then with no training or experience, they attempted to go for the gold and rip off homeowners everywhere.
Why? Greed, that is why!
Without knowledge on the legal implications of the software’s output and a real, licensed attorney, the audit becomes useless. Remember, what you are paying in a forensic mortgage loan audit service is the interpretation of the report. Thus, if you pay these loan audit scammers for their service with no lawyer backing or lack of over sight, then you are simply throwing your money away!
Please be careful out their in the foreclosure help forest. There are many, many wolves out there looking for blood….