|
May 20th, 2008
Moe Bedard
Homeowners Warning: Beware of new scams using
this as a tool to fight lenders by scammers and
out of work mortgage brokers everywhere!!! This
post is from early 2008 and the times have
changed folks. Yes, it can work and help, but
when used with a lawyer who can properly
represent you.
I have studied and written about the subject of
loan modifications probably more than anyone in
the world. My studies and writing have opened
my eyes to how the loss mitigation process
works and what a homeowner needs to do to get a
loan modification with their lender or
servicer.
What started out has just a blog to help inform
and educate consumers, has now given me the
insight to see what it is that the homeowner
really needs help with in dealing with their
toxic and predatory loan. This up close and
personal look at what they are facing, has
given me the tools and education to help combat
predatory lending and stop foreclosure.
The #1 goal of the mortgage audit is to
determine whether there were violations of
federal law.
If these violations are found, then the
borrower may be eligible for complete relief of
the predatory loan or a very favorable loan
modification.Complete relief of the preadtory
mortgage is called as a loan rescission.
Meaning the lender takes back the “predatory
loan” and awards or credits back to the
borrower all interest made on payments thus
far, loan origination fees, all applicable
lenders fees, penalties and attorney’s
fees.
However, in most cases the borrower may be
uneligible to rescind their loan because they
are just too far underwater to obtain a
mortgage and their credit rating may have been
adversely affected by the loan that has cause
them pain and suffering.
The most common option is just to mediate the
loan with your lender and fight for an
affordable loan modification based on the legal
violations on the loan. Everyone wins here.The
homeowner has their loan fixed and may have
their principle balance may be reduced also.
The lender does not lose their shirt because
they have mediated the matter without employing
their full legal staff on the file and wasting
operating expenses.
What do we do on a forensic loan document
review for attorneys or borrowers? Let me tell
you.
FORENSIC LOAN DOCUMENT AUDIT
* Complete client interview and all applicable
parties
* Complete loan document and disclosure audit
by 30 year underwriting and fraud and
compliance mortgage professional
* Truth in Lending Act (TILA) and Real Estate
Settlement & Procedures Act (RESPA)
* Reverse engineering of your loan terms and
Annual Percentage Rate (APR) for possible TILA
violations
* Complete 15 page report with all violations
and findings
CONSTRUCTIVE FRAUD
Material facts include the terms of the loan,
whether there is a prepayment penalty, or any
other information which a reasonable borrower
would want to know before accepting the loan.
Did the broker or loan officer or anyone
working for the broker or loan officer fail to
disclose any material facts to the
borrower?
FRAUD AND NEGLIGENT MISREPRESENTATION
Were any representations, statements, or
comments, written or oral made by the loan
officer, broker, notary or anyone else which
contradicted the terms of the documents?
NEGLIGENT MISREPRESENTATION
When a mortgage professional makes errors which
a reasonably diligent mortgage professional
would not have made, he or she may have made a
negligent misrepresentation.
BREACH OF CONTRACT
The note and its attachments are a contract.
The broker must follow all the terms of the
contract such as the way the interest is
calculated, and the penalties it assesses. Were
there any terms in the contract which the
lender failed to follow?
LOAN AUDIT REPORT
* Results report of all factual findings of the
forensic audit
* Any and all applicable federal law
violations
* The real terms of your loan
* Outline of hidden fees and/or commission
earned by your broker or lender
* A complete assessment so you can pursue
possible legal claims against your broker
and/or lender
|
Digg
Facebook
Slashdot
Technorati
Delicious
Stumbleupon
Twitter
Google Bookmarks