subject: How to Save Your Home and Your Mortgage [print this page] The economy is still struggling for stabilityThe economy is still struggling for stability. Based on a real estate reports, there are about a quarter of a million families facing a foreclosure every three months. When a borrower faces a foreclosure, feeling hopeless can be unavoidable.
While the economy might be the main culprit for foreclosures, there is also a significant aspect that sometimes contributes a homeowner's difficulties. This comes from the irresponsible practices of lenders. Although it might be convenient for lenders to blame the borrower for not understanding everything in the terms of agreement, many mistakes turn out to be deliberate violations committed by a lender.
The highest incidences of loan violations were discovered during the years 2002 - 2008. These discrepancies were uncovered via forensic loan audits on each loan. Since then, lenders have been more careful and have improved the quality of the loans offered, making sure the amount granted is not beyond the borrower's capacity to pay.
How Does a Forensic Loan Audit Work?
A forensic loan audit is conducted by a group of financial and legal professionals. They begin by requesting the loan documents from the lender and the borrower. Then, they investigate each document for inconsistencies, errors, and misleading information. Missing documents are noted as well. The auditors will submit all their findings and will use them in a federal court case against the lender.
If proven in a court of law that violations were indeed committed, the borrower will be compensated for being misled, misrepresented, and unfairly treated by his or her lender. Instead of facing an impending foreclosure, the borrower will save their house, and may even end up lowering their monthly payments.
