Home loans taken between 2002 and 2008 are termed problem loans. You might be thinking why so. It’s because, during this period, most creditors issued high-interest loans, refinanced loans, and adjustable-rate mortgages. And the borrowers could not afford them. Also, most mortgages are in some kind of creditor violation.

If you are one of those borrowers, forensic loan audits may help you. It will uncover creditors’ violations as well as help you out in loan modification. With forensic loan audits, you will know the problems associated with your home loan and get a handle to fight unscrupulous creditors in court or negotiate with them for a fair and equitable loan settlement.

What is a forensic loan audit?

It’s a thorough, scientific investigation of a loan to determine if your lender has violated any federal, state, or local laws in the servicing of the loan. A loan auditor performs a comprehensive analysis of a client’s mortgage documents, determining if there are any lender violations associated with their mortgage.

What should you do before hiring a forensic loan auditor?

Though you know everything about a forensic loan auditor, you shouldn’t attempt it without contacting your creditor. Yes, you read it right. The process is against your creditor, but, still, you should connect with the creditor before hiring a forensic loan auditor.

You should contact your creditor the moment you fall behind in your mortgage payments or find it difficult to continue or receive a foreclosure notice. Sometimes, the creditors agree to negotiate a new repayment schedule. If this happens as per your requirements, you will not need any forensic loan auditing.

If your creditor is not ready for the settlement, go for a forensic loan audit keeping the following points in your mind. These points will make the audit effective.

The loan audit shouldn’t be arbitrary; instead, it should be conducted forensically, meaning scientifically.

The loan audit should be comprehensive, including the review of every document mentioned in the mortgage contract. None of the documents should be left out to make the case strong.

Every mortgage document should be reviewed and compared to all the relevant and applicable mortgage case laws during the loan audit.

The loan audit should be in writing, analyzing and indicating the problem areas that you should definitely know.