Latest housing scam: ‘Securitization audits’

RESTON, Va. – July 5, 2012 – A new foreclosure rescue scam promises to help distressed homeowners reveal the actual owner of a promissory note through a “securitization audit.” But the scammers are charging fees for information that’s free.

“These questionable outfits are targeting desperate families, giving them the impression they can make their mortgages disappear if they just pay for a securitization audit,” said Mortgage Fraud Examiners founder Storm Bradford.

Owners are told that a securitization audit finds the true owner of their mortgage, and that can be used to convince the court that the mortgage servicer doesn’t have a legal right to foreclose.

“But here’s the thing: Anyone can find out who owns his or her note with just a little digging,” says Bradford. “There’s absolutely no need to pay a company for a securitization audit, but the peddlers of this scheme count on the fact that the average homeowner doesn’t know that.”

In addition to the financial hit, securitization audits usually deal homeowners another blow: They’re not typically admissible in a court of law.

Attorney Gregory Bryl, who practices in Florida and Virginia, says that most securitization audits are merely the opinions of the people writing them, and those people have no way of knowing exactly what happened with a mortgage after it originally closed.

Attorney Thomas K. Plofchan, Jr., who practices in Sterling, Va., contends that the only proven method for securing evidence critical to a homeowner’s claim against the lender is a thorough examination of the mortgage contract.

“Every homeowner facing foreclosure has fantasized about getting his home free and clear because his lender screwed up,” said Bradford. “It’s only natural, but the fact is the only homeowners getting a home free and clear, and/or been granted other compensation have succeeded after a thorough analysis of their mortgage transactions … A securitization audit can’t provide that level of scrutiny.”

© 2012 Florida Realtors®