Loan Audit/Bad Loans
When searching for a mortgage, Veterans enlist the help of a professional to help them through the complicated process. However, there has been an upset in the mortgage world. Predatory lending is a new word that has been given to those professionals that have cheated out people on honest advice and as a result put them in financial danger. Predatory lending involves mortgages where the Truth in Lending Act was violated and so, falling under the predatory lending statue.
What is a Loan Audit? It is a report that is very specialized and imperative in identifying if a borrower is a victim of predatory lending. A professional review is made of all loan documents and complete and thorough investigations of miscalculations are made to determine if the loan terms are accurate, honest, and met the requirements of the applicable federal statues.
If violators are found, then the borrower may be eligible to complete relief of the predatory loan, also know as loan rescission. This would mean the lender takes back the "predatory loan" and awards of credits back to the borrower all interest made on payments, loan origination fees, all applicable lenders fees, penalties and attorney's fees.
A Forensic Loan Audit is an important part of this process. It includes:
- A complete client interview is made and all applicable parties are interviewed
- A complete loan document and disclosure audit using the Truth in Lending Act (TILA) and Real Estate Settlement & Procedures Act (RESPA)
- A reverse engineering of your loan terms and Annual Percentage Rate (APR) for possible TILA violations are made
- A complete multi page report is made with all violations and findings and a summary that is accepted by the courts
By going through this process constructive fraud, frauds and negligent misrepresentation, and breach of contract can all be noted and give you leverage in negotiations.
Equal Housing Lender