Mortgage Loan Audit May be Last Resort for Tough Loan Modifications and Investment Properties

Boca Raton, FL, May 26, 2009 --(PR.com)-- Borrowers across the country have been applying for loan modifications and renegotiating their mortgage paper at record rates---but mixed results, say industry insiders. According to the website www.documentaudit.org and a well known Florida based Attorney-owned loan modification processing company, many of the applications being submitted for modification are being rejected. A company spokesman said “…more and more of these loan mod requests are being rejected due to non-compliance with the new Obama guidelines…. It appears that while the lenders may participate in the program, they are free to implement their own guidelines with discretion, and reject based on other criteria---many of these people have investment properties, too much cash in the bank, too little cash in the bank, too much income, too little income……qualifying is getting harder and harder.” He went on to add “…we are going to try and help these loan modification rejections by performing mortgage loan audits as a last resort to aid in defending these homeowners from the lenders they turned to for help….”

The firm, which is launching a foreclosure defense division, said it is utilizing mortgage loan document audits to check for violation of federal lending laws like TILA, RESPA, and others. It appears that there is a new niche emerging-rejected loan modification homeowners who have no other options to save their home. It seems that investment properties, second homes, and jumbo mortgage loans are turned down for modification almost immediately, in the absence of leverage against the lender, like a failing mortgage loan audit.

Another Las Vegas based attorney, who asked we not use his name, 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….”

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