Distressed Homeowners Fighting Back With Forensic Loan Audits

Dean Mostofi (Potomac Funding Group) — Fri, 07 Nov 2008 03:49:53 -0800

Washington, DC – November 6, 2008. National Loan Audits announced today that troubled homeowners with adjustable rate mortgages who are having trouble getting their loans modified or who are behind with their payments and in danger of losing their home, now have access to Forensic Loan Audits, performed by mortgage industry experts, to discover if their lender violated the Truth in Lending Act or made any errors while preparing their closing documents and neglected to adequately disclose the terms of their loan.

According to the Truth in Lending Act even a small mistake with calculating the borrower’s annual percentage rate could be an actionable violation, enabling the borrower to rescind the loan. Therefore, the threat of a lawsuit is often sufficient to persuade an otherwise uncooperative lender to negotiate an attractive work out with the borrower.

Until recently Forensic Loan Examinations were only made available to large banks and lending institutions wanting to determine their own exposure to risk and potential legal liabilities prior to purchasing large pools of mortgage loans. But now a Maryland company staffed by veteran mortgage professionals is offering this service to distressed homeowners at an incredibly affordable price. “While our competitors may charge up to $3000 for a Forensic Loan Audit, we decided to offer this product at a price almost anyone could afford” Said Dean Mostofi, the founder of National Loan Audits in Rockville, Maryland, a Washington, DC suburb. The firm charges $495.00 for a comprehensive mortgage document review and provides the homeowner with a 40-page written report that contains a detailed listing of their findings in an easy to read format.

Mostofi says that over 80% of the loan files reviewed by his firm contain violations ranging from small and unintentional mathematical errors to blatant fraud and misrepresentation. The most common violation is the understatement of prepaid finance charges and in many instances a mere $35 error within the Truth in Lending disclosure statement could entitle the borrower to a refund of all finance charges, closing costs and interest payments made since the inception of the loan.

Forensic Loan Reviews are also used by attorneys assisting borrowers with loan modification and foreclosure defense but according to Mostofi most lawyers who contact him don’t know much about the more creative legal tactics currently being employed by a handful of savvy foreclosure attorneys. Consequently, Mostofi also offers a consulting service to attorneys helping them understand the remedies available to their clients in the event the lender violated the Truth in Lending Act or if it cannot prove ownership of the note. “Amazingly, many lenders don’t legally own the note” says Mostofi “but since no one challenges their right to foreclose, they get away with it” he added.

The intent of an audit is not to force the parties in to a lengthy and costly lawsuit but rather to encourage the lender to sit down with the borrower and to negotiate an affordable work out so the borrower can keep the home and the lender can mitigated its loses. “The audit is to give homeowners more ammunition so they can stand a chance in negotiating a decent modification with lenders who have far more resources than the average borrower and often play hardball unless they are faced with the risk of a costly lawsuit” said Mostofi.

National Loan Audits was founded by Dean Mostofi and it is based in Rockville, Maryland.

Contact:
Dean Mostofi,

2275 Research Boulevard, #500,

Rockville, Maryland 20850

(800) 564-2764

dean@lenderaudits.com

www.nationalloanaudits.com

Benefits of Loan Modification

Dean Mostofi (Potomac Funding Group) — Tue, 26 Aug 2008 20:51:56 -0700

If you've fallen behind in your house payments and you are worried about a possible foreclosure - there may be an answer.

If you can currently make your regular payment, but you can't catch up with the past-due amount - you might be able to negotiate with your lender to add any past-due amounts, including interest and escrow, to the unpaid principal balance and then this new amount will be re-amortized over a new period of time.

This type of an agreement is called a loan modification.

There are many reasons that you may want to look into loan modification - although this is not a process that you will want to consider for just any reason, it is one that offers some benefits if you find yourself in a tough situation.

For many people, the process of loan modification never comes to mind. But on the other hand, there are some people who have had to deal with this in order to get their life back on track.

So what are the benefits of loan modification? Here are three that you should keep in mind if you find yourself in trouble.

If you have missed mortgage payments in the past, but are now back on track, loan modification can help you keep your payments under control. Generally speaking, your lender will allow you to roll your missed payments into a modified loan. For this reason, you will be back on track with the ability to pay the past due amount over an extended period of time.
Simply put, loan modification can help you keep your home if you are facing foreclosure. As you can imagine, this is one of the biggest benefits of this process. If you can no longer afford your mortgage payment your lender may reduce your rate to make your payment affordable.
Although the loan modification process is long and drawn out, if it is something that you need to do, it is not nearly as hard as you may think. You will have a lot of help along the way, and if you are willing to make it work, you will definitely want to consider moving through the many steps with speed and precision.

These are only three of the main benefits of loan modification and as you can imagine, there are many others that you will also come across if you are ever faced with this situation.

The loan modification process is not all fun and games. It would be much better on you and your home if you never have to consider looking into this process.

Even though there are companies out there that will help you negotiate your loan modification - you may want to do it yourself. And in spite of what you might think - mortgage companies handle loan modification requests every day.

Just contact your mortgage company and explain your situation. You might be surprised at how helpful they can be.

Dean Mostofi's Blog

Distressed Homeowners Fighting Back With Forensic Loan Audits

Benefits of Loan Modification