It's been all over the news since California State Attorney General Jerry Brown made the latest announcement in foreclosure scams. "Forensic Loan Audits" are solicited to homeowners in danger of foreclosure but have not been proven to give an advantage in obtaining loan modification from the bank, he says.
A forensic loan audit is conducted by specialist, and entails pouring over all of the loan documents given to the borrower at the time or origination or in response to a qualified written request. The loan audit can sometimes be as complex as the loan documents themselves, outlining the bank's failure to comply with federal laws such as the Real Estate Settlement Practices Act ("RESPA") and the Truth in Lending Act ("TILA").
When loan modifications were new, a few years ago, forensic loan audits may have mattered. But they don't anymore. Loan servicers only care about your eligibility for loan modification under the Obama Housing Plan and your ability to pay the modified monthly loan payments. AG Brown is right to advise homeowners to be wary of foreclosure consultants who claim that a forensic loan audit will improve the chance of securing loan modification. '
This is not to say that forensic loan audits are completely without merit. For example, a loan audit can be of value to someone who honestly wants to know if or how they were taken advantage of when they
if you are considering filing a lawsuit against your bank, a forensic loan audit is absolutely necessary. You, or your attorney, must determine the state and federal violations which occurred before, during and after the loan closing in order to a court action against your bank. At QMS Law, we will consider your situation and determine whether a forensic loan audit is appropriate for your situation. We will not recommend one unless you need one.
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