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 start a business that benefits homeowners everywhere and provides a valuable weapon to help combat predatory lending and stop foreclosure.
The new business, Loan Safe Solutions, has found the ”secret key” to obtaining a loan modification. This secret key is called a “forensic loan document review” or ”mortgage audit.”
This service is a very specialized and imperative in identifying if a borrower is a victim of predatory lending. Our team of specially trained experts review all loan documents and perform a thorough investigation for miscalculations and to determine if the loan terms are accurate, truthful, and met the requirements of the applicable federal statutes.
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
FORENSIC LOAN DOCUMENT REVIEW FEE SCHEDULE
$695 for one loan
$295 for a second mortgage
Non-profits or legal aid law firms receive $100 discount on all services
Available in all 50 states!
Please call us at 951-531-0148 for a FREE consultation a Loan Safe Solutions mortgage expert.
This service is available to consumers, brokers, attorneys and law enforcement. There are discounts for volume mortgage audits. Please call for details.
Loan Safe Solutions
Telephone (951) 531-0147
Facsimile (951) 801-7979
1325 Corona Pointe Court Suite #103 Corona, California 92879
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Good Evening just wondering what are the full documentation to start off a process and are did documents avalible from lender if need.
Posted on May 21st, 2008 at 10:02 pm
Greg,
Some lenders will provide copies, others won’t. Wells Fargo will not if they know that you are trying to do a loan modification with them. They will only provide them AFTER the loan mod. That is because in many mod agreements, there are clauses that limit the ability of the borrower to go after lenders for violations prior to the mod.
Posted on May 22nd, 2008 at 3:33 pm
Hi im Aliece . Ive been trying for years to get the Loan Documents from the lender but like most only get copies of them ive been trying sence 2004 and always get the run around, Come to find out there are no loan Documents we never even got any because there was no Closeing for us they never called us they had one though and the Notary Claims she was in out home but that would be in possable because she has us signing papers in 3 diffrent County’s and my husband was working that day they had the closing and to get the real one’s you can not because because they had shreaded them the copies we have are all diffrent and they are trying to Claim our back proptery and it was not on this loan we are in court now to save our home been doing this for a year now and i would like to know how a 30 year fixed went to a 3 year arm in less than 2 days i need some help im about at the end of my rope , and even though this is not our fault we about to just give up everything this is our life we have been in our home sence 1974 something is so wrong here if you can help it would be great but you would have to hear the whole thing from where it started and then you tell me if you can help i dont want to lose everything we have my Husband has had 2 Heart Attacks from the stress of all of this and he is really depresied next thing i will lose is him if this keeps up so any kind of help would be great
Aliece
Posted on May 24th, 2008 at 7:55 pm
I am currently in foreclosure-in fact I have been for 6-7 months. I originally agreed to a forebearance listing agreement as I believed then the only course of action was to sell.I saw my
home de-value by maybe 80K to 100K since Oct.2006.It was then I refinanced my mortgage,paid off other debts and took 11K cash equity out.All told including the debts I paid I actually took 37K-38K from property.My loan was a 2yr adjustable starting in the 7%-8% range.Now it has gone to the low-mid 10% range.I was only able to make a couple payments on the foreberance agreement
and then I defaulted.My servicer(HomeQ)said because I defaulted, they cannot reinstate such program again for me.They also have no
loan modification programs for their borrowers per,I presume, the
noteholder(DeutscheBank)instructions. Also,in their attorneys’ filing of the lawsuit to begin the foreclosure, they acknowledged
that they lost the note,however,I am not going to stand up and deny I took out this loan-I did.So now the real issue is why are
DeutscheBank and /or HomeQ so adverse to alleviateing not only their situation a little bit but mine too.In the latest talks I have had with them( 2 weeks ago),they said they are only too willing to put me on an active re-payment plan but, of couse, I need to come up with at least 10K or close to this and then start
making payments again that will be about $700 more than what my regular payments are now. And I can’t afford to do this …its simply ludicrous!I live in Florida and I know my area is very bad
but probably not the worst in terms of foreclosed properties.Our
court system also can not handle the caseload of these foreclosures.This, plus the horrible market is why I am certain there has been no sale date as yet, thank God.I would be interested in hearing from you and if you know any particulars re
either HomeQ servcing or DeutscheBank, good or bad. Thank you.
Posted on May 25th, 2008 at 7:42 pm
I have been in foreclosure for 8 or 9 months now. My house has already been in the sheriffs auction, but noone bid on it, Thank God. I hired someone to stop the foreclosure, but the company didn’t do what they said they would, so I’m back to square one. I’ve tried getting a loan, but since I filed bankruptcy, that didn’t work either. My house is appraised at 90000 and I owe 28000, not because of a mortgage, but because I used it as collateral on my Master Card and fell behind on those payments. Now I’m stumped and need any kind of help anyone can give me so I can save my home. I have to call the bank on 5/29/08 to let them know what I can do. PLEASE HELP!!!
Posted on May 26th, 2008 at 10:17 pm
I think the bank wants about 10 gran to solve this matter because of lawyer fees and back payments. If I had that kind of money I wouldn’t be in this god awful mess, now would I? Please reply asap so I know where to turn….. Thank you very much
Posted on May 26th, 2008 at 10:19 pm
J Christopher Lawson, what state do you live in? I may be able to help or direct you to someone who can. Kevin
Posted on May 27th, 2008 at 12:26 am
Working with loss mitigation, especially the short sale or DIL sections (from their paperwork they appear to be the same entity at least with my servicer) is like being in a black hole or being stuck in a paperwork vacuum. I have sent my package in 6 different times to four different fax numbers and they still claim not to have it. I have also scanned the package and emailed it to two different people as well.
If they can’t even receive and process the information how can they ascertain, or present to the investor, an acceptable offer?
Posted on May 28th, 2008 at 11:36 am
I need help I want to save my home,I’AM IN PRE FORCLOSURE.
Posted on May 29th, 2008 at 2:14 am
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