Lenders Gear Up to Offer Mortgage Loan Modifications with a Catch… No Mortgage Loan Document Audit Legal Recourse
Borrowers will be facing a veritable landslide of Loan Modification offers from lenders with waiver of rights clauses, according to some Florida real estate attorneys. With mortgage loan document audits fast becoming the favorite tool of Loan modification companies and attorney throughout the nation, the lenders are attempting to pare their losses. Mortgage loan document audit firms like Florida based MitiGroup, LLC have seen their business grow in the past month from loan mod companies.
Boca Raton, FL, December 24, 2008 --(PR.com)-- In light of the upcoming Obama inaugural, many industry insiders expect loan modifications to turn into a proactive lender offering—where the borrower will be, in effect, “chosen” to receive a loan modification based on criteria such as occupancy status and payment history. There is already empirical evidence that some of the lenders will utilize legal verbiage that will protect their interests---as contemplations for a loan mod---to limit the recourse a borrower can have regarding the original loan. With mortgage loan document audits fast becoming the favorite tool of loan modification companies and attorney throughout the nation, the lenders are attempting to pare their losses. Said one prominent Florida attorney specializing in defending homeowners by filing TILA and RESPA lawsuits, who requested they not use his name,
“…the lenders are nervous. They stand to see a wave of lawsuits related to understated TILA disclosures and RESPA violations, which can be somewhat easily detected through mortgage loan auditors using the same compliance software the lenders use…”
He went on to say “…… the irony of this is that the lenders themselves fell asleep at the wheel in regard to their own internal audits, leading to defective loan documents being sent to closings throughout the United States. As it stands right now, people are being foreclosed on needlessly. A simple mortgage loan document audit would have prevented the foreclosure, in the hands of competent counsel. These audits are showing a common violation in adjustable rate mortgages, where the amount financed is understated. If it is as little as $100----it can be a statutory defense against foreclosure. We expect these audits to spawn attempts at class certification against some of the larger servicers and lenders, if accepted by the courts….”
Mortgage loan document audit firms like Florida based MitiGroup, LLC have seen their business triple on the past month from loan mod companies. Said company President Bud Fox: “our business is growing as loan mod companies see the need to add a tool to their negotiating toolbox. Negotiating is getting tougher and tougher, and flexibility is going away as lenders have come up with a veritable bag of tricks to establish underwriting guidelines for these mods. I hear many loan modification companies moaning and groaning about their inability to get the mods through...”
Bud went on to say that “...even our cursory computer audit can help many borrowers, and our forensic loan document audit is the favorite of attorneys trying to form a legal case based on TILA or RESPA violations or predatory lending.”
As more borrowers face the disturbing prospect of foreclosure, the loan modification wave is expected to intensify in 2009 based on U.S. government statistics. As the federal bailout package is slated to “trickle down to main street”, it appears that a system of checks and balances is being established between independent loan modification companies, attorneys, and the lenders themselves. The net result should help more people stay in their homes.
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“…the lenders are nervous. They stand to see a wave of lawsuits related to understated TILA disclosures and RESPA violations, which can be somewhat easily detected through mortgage loan auditors using the same compliance software the lenders use…”
He went on to say “…… the irony of this is that the lenders themselves fell asleep at the wheel in regard to their own internal audits, leading to defective loan documents being sent to closings throughout the United States. As it stands right now, people are being foreclosed on needlessly. A simple mortgage loan document audit would have prevented the foreclosure, in the hands of competent counsel. These audits are showing a common violation in adjustable rate mortgages, where the amount financed is understated. If it is as little as $100----it can be a statutory defense against foreclosure. We expect these audits to spawn attempts at class certification against some of the larger servicers and lenders, if accepted by the courts….”
Mortgage loan document audit firms like Florida based MitiGroup, LLC have seen their business triple on the past month from loan mod companies. Said company President Bud Fox: “our business is growing as loan mod companies see the need to add a tool to their negotiating toolbox. Negotiating is getting tougher and tougher, and flexibility is going away as lenders have come up with a veritable bag of tricks to establish underwriting guidelines for these mods. I hear many loan modification companies moaning and groaning about their inability to get the mods through...”
Bud went on to say that “...even our cursory computer audit can help many borrowers, and our forensic loan document audit is the favorite of attorneys trying to form a legal case based on TILA or RESPA violations or predatory lending.”
As more borrowers face the disturbing prospect of foreclosure, the loan modification wave is expected to intensify in 2009 based on U.S. government statistics. As the federal bailout package is slated to “trickle down to main street”, it appears that a system of checks and balances is being established between independent loan modification companies, attorneys, and the lenders themselves. The net result should help more people stay in their homes.
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Contact
MitiGroup, LLC
Patrick McAfee
443-524-1896
www.mitigroup.com
Patrick McAfee
443-524-1896
www.mitigroup.com
Contact
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