The following is general legal information only and only opinions of the Author.  Please seek legal counsel for your specific legal questions.

Homeowners, is your ARM mortgage about to adjust?  Are you running 30, 60, or 90 days late on your home mortgage payment?  Did they cut back on your job resulting in a loss of income and you are wondering what is going to happen to your home?  Whether you are going to receive a notice of default (NOD) or whether your house is going to go into foreclosure?

This is a really tough time for alot of homeowners.  People from all walks of life and all income levels are dealing with really tough economic times right now.  The interest rates on those ARM home mortgage loans that looked so good just a few years ago, and now positioning themselves to come back to haunt you.  At this point, you have to ask what can be done?

Well, there is hope, and a loan modification may be the tool you need to reduce your mortgage and prevent foreclosure.

LOAN MODIFICATION FREQUENTLY ASKED QUESTIONS (FAQ)

What is a loan modification?

Typically a loan modification is an adjustment to your existing mortgage note, (including a forebearance of late payments and waiving the right to start the foreclosure process) that allows you to restructure your loan or workout your loan as some call it and arrange for a forgiving of late payments.  The late payments are typically tagged on to balance of the loan and and this in most cases will increase your monthly payment.  At this point, a lot of the loan modification work you hear about is working these sorts of forebearances.  Many of these are based upon having a bona fide hardship that the lender can verify and which the homoeowner can identify a solution to overcome the hardship.

Here are some other examples of adjustments to your existing mortgage note that may help you stay in your home and prevent foreclosure by the bank.

LOAN MODIFICATION EXAMPLES: 

• Converting an ARM loan into a 30 or 40 year fixed loan
• Reduction of principle loan balance amount
• Reduction of Interest rate
• Obaining a short term interest-only loan
• This is only a short list of possbilities

Can a loan modification result in a principle loan balance reduction?

This is the million dollar question and is what alot of homeowners are seeking.  A reduction of the princple balance of the loan to reduce the amount of the loan down closer to where the true market value of the property is.

Obviously, this is the lender's last option.  The investor normally wants to make sure they get every last dime they contracted for, so if there is any other option likely a principle balance reduction will be difficult.

That being said, what we are doing at my firm is perofrming comprehensive and detailed forensic loan audits on borrowers loan files to see if we can find federal legal loan errors and non-compliance errors.  If we can find these types of errors, this will put you in a better position of being able to demand a princple balance loan reduction that can not only prevent foreclosure, but may put you in a position where you may see some equity in your home in the next few years.

What is a Forensic Loan Audit?

A forensic loan audit is basically a page by page review of your loan documents that looks for potential federal law compliance errors.  Typically things we look for are:

• Federal Truth in lending violations such as failure to accurately disclose APR, finance charges, total of payments, etc. and failure to provide each borrower or person having an ownership interest in the property with 2 copies each of their notice of right to cancel.  Where these rights are violated an "extended rescission" period of three years is triggered allowing a person to potentially rescind their loan after the fact and seek back interest paid to the lender.  This can be a powerful remedy
• HOEPA violations
• RESPA violations
• Disclosure problems (false and misleading disclosures, Wrong Disclosures, No Disclosures, etc.)
• ANd many more things....

If legal violations are found, this puts you in a much stronger position to make demands to your lender including demanding principle loan reductions, favorable interest rates, etc.

Of course, there are no guarantees as to any result but it is well worth knowing whats in your legal file. 

People often ask me, why would there be errors in the legal files?  The answer is simple, in the rush to get a massive amount of loans out the door thelenders got sloppy.  Often times, the loan compliance person was the lowest paid person in the mortgage building and worked as hard as anyone.  Many of these people may not have thought they would be around two or three  years later when the rates would go back up (as just about everyone knew this would happen at some point).

At any rate, the environment, and greed to make more money forces people to cut corners.  Now the lenders work is being examined under a microscope, and if there are legal errors the banks should and must be held accountable. 

What's the Difference between hiring a real estate broker vs. and Attorney to perform a loan modification?

There are many fine real estate brokers out there doing some fabulous things for homeownwers in distress and facing foreclosure.  However, they did not go to law school they are not attorney trained and they are not permitted to give you legal advice.  When your home is on the line, you cannot afford to chance it.  In addition, where necessary, the lawyer can follow up on demand letters with a lawsuit (in the appropriate case).

First, if you ask around, you will normally learn most brokerages will not perform a file audit of your file.  Why?  Three possible reasons: (1) it cuts down on their profits if they have to pay for a loan audit (2) it slows them down from getting more deals done (they have to devote time to this task) and (3) they may not have the proper training or background do an audit.

The question to you as a homeowner is this, if you can find liabilty against your lender or loan servicer might this allow you to leverage a loan modification that might not othwerwise qualify for?

We are fighting to find errors that may help you.  We deal with alot of Clients who have been denied loan modifications and were told they simply cannot afford the house.  In these cases, without an audit, a homeowner is literally at the mercy of the lender to give them a loan modification.

Negotiation from a position of strength is what attorneys are trained to do.  We comb the haystacks looking for levergage to help you avoid foreclosure and to keep your home with an interest rate and loan term that you can handle.

What does it take to get started getting a loan modification?

Simply call us today.  Let's talk about your mortage loan, how it came about and what we may be able to do for you.  The call is free and you have nothing to lose.

The Law Offices of Steven C. Vondran, P.C.

We serve only California and Arizona clients.

(877) 276-5084

Arizona Office
2415 E. Camelback Rd. Suite 700
Phoenix, Arizona
85016

California Office
620 Newport Center Drive, Suite 1100
Newport Beach, CA
92660

This is an advertisement and communication pursuant to State Bar Rules.  We do not seek, nor do we represent clients from states outside California or Airzona.

 ________________________________________________________________________________________________

For those of you who may have missed my previous posting on Forensis File Audits, here it is:

California Homeowners are you facing foreclosure?  Have you received a notice of default?  Are you running late on your home loan payments?  Is your adjustable rate mortgage (ARM) about to adjust confronting you with staggering payments that you cannot afford?  Do you want to see if you have legal rights that may be able to force a meaningful principle reduction to your mortgage?

     THESE ARE VERY SERIOUS TIMES AND YOU DO NOT HAVE TIME TO FOOL AROUND!  YOU NEED TO GET ON TOP OF THIS SITUATION AND CONTACT YOUR LENDERS NOW.  BUT IF AT ALL POSSIBLE YOU SHOULD APPROACH YOUR LENDER WITH LEGAL LEVERAGE AND NOT JUST LOOKING FOR A HANDOUT OR A FAIR SHAKE.  THESE ARE BANKERS WE ARE DEALING WITH. THERE IS NO STATUTORY OR CONSTITUTIONAL RIGHT TO A LOAN MODIFICATION.  HOWEVER, WHERE A LENDER MAKES SERIOUS LEGAL ERRORS AND OMMISSIONS IN THE ORIGINIATION OF YOUR HOME LOAN MORTGAGE THEY SHOULD BE HELD ACCOUNTABLE AND FORCED TO MODIFY YOUR LOAN.  WHERE ASSIGNEE LIABILTY SHOULD BE APPLIED TO A LOAN SERVICER THAT SHOULD BE EXPLORED AS WELL.

     Why NOT contact an Arizona Attorney who understands the foreclosure process and understands the mortgage industry to see if we can obtain a loan modification on your behalf.  This first and most important thing you can do is to have your home loan mortage audited by an attorney and see if there were serious errors, fraud, or other illegal activity in your first mortgage and/or second mortages.

     Here is what an Arizona Attorney practicing in Loan Modification and Foreclosure Prevention will look for when seeking to modify your home loan:

(1) We audit your loan file to see if there are any Federal Truth in Lending Errors

     - Payment schedules must be correct

    -  Finance Charge must be correct within permitted tolerances

    -  APR (Annual Percentage Rate) Must be adequately disclosed

    - You should recieve two copies of a notice of right to cance in non-purcahse loan transactions.  These should be properly filled out.

(2) We audit your loan file  to see if the Real Estate Settlement and Procedures Act (RESPA) was violated

    Here is some basic information about RESPA from the Housing and Urban Development Website (HUD)

Scope of RESPA

1. What kinds of transactions are covered
   under RESPA?
   
   Transactions involving a federally related mortgage loan, which includes most loans secured by a lien (first or subordinate position) on residential property. This includes: home purchase loans, refinances, lender approved assumptions, property improvement loans, equity lines of credit, and reverse mortgages.
   
   
2. What types of transactions are generally not covered?
   
   The following are kinds of transactions that are not covered: an all cash sale, a sale where the individual home seller takes back the mortgage, a rental property transaction or other business purpose transaction.
   
   
3. Is a "time share" a covered transaction under RESPA?
   
   Yes, if the lender's interest is secured by a lien on residential property.
   
   
4. Is a loan secured by a condominium unit or a cooperative share a covered transaction under RESPA?
   
   Yes, as long the units are not used for business purposes.
   
   
5. Is a loan secured by a manufactured home (mobile home) covered transaction under RESPA?
   
   Yes, but only if the manufactured home is located on real property on which the lender's interest is secured by a lien.
   
   
6. Does a federally related mortgage loan only involve FHA, VA or other government sponsored loans?
   
   No, RESPA covers most conventional loans too. See the statute or regulations for the definition of a federally related mortgage loan.
   
   
7. Are home equity loans covered under RESPA?
   
   Yes, home equity loans secured by residential property are covered.
   
   
8. How does the coverage of home equity loans and subordinate lien loans differ from other RESPA covered loans?
   
   If the loan involves an open-end line of credit, providing the disclosures required by Regulation Z satisfies the RESPA good faith estimate and the HUD-1 or HUD-1A requirements.
   
   Both subordinate lien loans and open-end lines of credit (home equity loans) in first lien position are exempted from the loan servicing requirements.
   
   

9. Are construction loans covered under RESPA?

   No. Unless: 1) the loan is used as, or may be converted to permanent financing by the same lender; or 2) the lender issues a commitment for permanent financing; or 3) the loan is used to finance a transfer of title to the first user; or 4) the loan is for a term of two years or more, unless it is to a bona fide builder.

10. If a construction loan is covered under RESPA, how do you account for construction loan closing on the HUD-1 if funds will be held back by the lender until performance?
    
    List the sales price of the land on Line 204, the construction cost on Line 105 (Line 101 is left blank) and the amount of the loan on line 102. The remainder of the form should be completed taking into account adjustments and charges related to the temporary and permanent financing which are known at the date of the settlement.
    
    
11. When the loan transaction includes an option for the borrower to obtain additional funds in the future merely by signing a note for the new amount, must RESPA's disclosure requirements be followed for the future advance of additional funds?
    
    Yes, because there is a new note. This is consistent with Truth in Lending Act provisions.
    
    
12. If a loan is sold within 1-7 days of closing to another lender, does the sale of that loan fall within RESPA's coverage?
    
    The sale of a loan after the original funding of the loan at settlement is a secondary market transaction. Such a sale is exempt from RESPA coverage as a secondary market transaction. However, any transfer of ownership and/or servicing rights is subject to RESPA's requirements in Section 6.
    
    
13. Does the exemption from RESPA for the sale of a land parcel of at least 25 acres apply even if there are 2 homes on the property?
    

    Yes, as long as the property is a single parcel.

14. Can a credit agency provide a lender with a dedicated printer to expedite communication between the credit agency and the lender?
    

    Yes, provided the printer can only be used for communication with the lender and not for general use. If it's for general use it may be considered payment for the referral of business.

15. Can a flood zone certification company examine a lender's existing loan portfolio for free or at a reduced rate, in exchange for the lender sending the company future business?
    

    No. Flood zone certification is a covered settlement service (24 CFR 3500.2), therefore RESPA would apply to agreements by companies or persons providing portfolio reviews. Providing free or reduced reviews is a thing of value. Providing this service in exchange for referrals of future flood insurance business would violate Section 8(a) of RESPA which provides that "[n]o person shall give and no person shall accept any fee, kickback, or thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or a part of a real estate settlement service involving a federally related mortgage loan shall be referred to any person."

16. Can a lender set up a contest for real estate agents under which the agent who provides the lender with the most business will win a trip to Hawaii?
    

    No. Under RESPA, the trip itself, and even the opportunity to win the trip, would be a thing of value given in exchange for the referral of business.

17. Can a lender give a borrower an incentive, such as a chance to win a trip or a rebate, for doing business with the lender?

    RESPA does not prohibit a lender or other settlement provider from giving the borrower an incentive for doing business with it as long as the incentive is not based on the borrower referring business to the lender.

18. Can a mortgage banker and a real estate broker advertise their services together, for example, on the same brochure or newspaper advertisement?
    

    Nothing in RESPA prevents joint advertising. However, if one party is paying less than a pro-rata share for the brochure or advertisement, there could be a RESPA violation.

19. Can a lender give a real estate agent note pads with the lender's name on it?
    

    Yes. Such note pads with the lender's name on it would be allowable as normal promotional items. However, if the lender gives the real estate agent note pads with the real estate agent's name on it for the agent to use to market clients for its real estate business, then the note pads could be a thing of value given for referral of loan business, because it defrays a marketing expense that the real estate agent would otherwise incur.

20. Can a mortgage broker be compensated for referring business to a lender that is unrelated to a real estate transaction, such as automobile loans?
    

    Yes, provided that the compensation is exclusively related to the automobile loan and does not represent, in whole or in part, compensation for the referral of real estate business, and no lien is placed on a residence to secure the auto loan.
    
    Affiliated businesses

21. If a lender refers a consumer to more than one of its affiliated settlement service providers, does the lender have to provide a separate affiliated business arrangement disclosure statement for each referral?
    

    No, the lender can use one disclosure statement.

22. If a lender refers a consumer to a settlement service provider with which it does not have an affiliate relationship, as defined by RESPA, does the lender still have to provide the affiliated business arrangement disclosure statement?
    

    No, the affiliated business arrangement disclosure statement is only for affiliates.

23. When a principal in a law firm is a member of the board of a lender and the lender refers RESPA covered settlement service business to the firm, but not personally to the principal, must the relationship be disclosed?
    

    Yes. When the lender refers the borrower to the law firm, the borrower must be given an Affiliated Business Arrangement Disclosure Statement.
    
    Fee splitting

24. Can a lender charge a borrower a fee for sending documents via courier and disclose it on the HUD-1 where in fact the borrower stops by the lender's office and picks up the documents instead?
    
    No, because the charge for the courier service does not represent a charge for work actually performed which can be imposed on the borrower.
    
    
25. Can a lender collect from the borrower an appraisal fee of $200, listing the fee as such on the HUD-1, yet pay an independent appraiser $175 and collect the $25 difference?
    

    No, the lender may only collect $175 as the actual charge. It is a violation of Section 8 (b) for any person to accept a split of a fee where services are not performed.

26. Can a lender charge a borrower at closing a one time charge for setting up an account with a tax service to arrange for tax payments?
    

    Yes, the lender may collect a reasonable charge for the service provided.

27. Can a title company, which has the only convenient closing room in the area, provide it to any interested party at $100 per closing?
    

    Yes, provided the charge is reasonably related to the value of the space.
    
    Specific forms and consumer information

28. Where a mortgage broker is used, is it the mortgage broker's responsibility to provide the Good Faith Estimate (GFE) to consumers, or is that the lender's responsibility?
    
    If the mortgage broker is not an exclusive agent of the lender, the broker should provide a GFE within 3 days of receiving an application. The lender is not required to send an additional GFE; however, it is the lender's responsibility to ascertain that one was sent and includes an estimate of all costs that are likely to occur. Where the broker is the exclusive agent of the lender, either the broker or the lender shall provide the GFE.
    
    
29. When must the special information booklet be provided and by whom?
    

    In general, the lender or mortgage broker should provide the special information booklet at application. Alternatively, they may place it in the mail to the applicant not later than three business days after the application is received or prepared.

30. Must a mortgage servicing transfer notice be given for a prospective table funded transaction?
    
    Yes, by the mortgage broker.
    
    
31. When the potential borrower furnishes a substantial amount of financial information for prequalification, but no particular property has been identified, must the good faith estimate be furnished to the borrower?
    

    No. A submission by a borrower to a lender that does not identify a property is not an application and thus does not trigger the Good Faith Estimate requirement. However, HUD encourages providing information to the borrower on settlement costs as soon as it can be estimated, so that the borrower may be better able to shop.

32. If the servicer neglects to pay the homeowner's insurance bill out of escrow and, as a result, the consumer loses coverage, what are the servicer's responsibilities and what is the servicer's liability for harm to the consumer that results?
    
    The servicer is required to pay escrow items on time, so long as the borrower is timely in his/her mortgage payments. If the borrower is damaged by the servicer's failure to pay for the insurance on time, the borrower can sue under section 6.
    
    Additional FAQs
    
    
33. If the borrower is getting a "no cost" loan, must the lender list charges the lender is going to pay?
    
    Yes. The charges to be shown on the GFE and the HUD-1 must include any payments by the lender to affiliated or independent settlement providers. These payments should be shown as P.O.C. (paid outside of closing).
    
    
34. The regulations at 3500.15 (b)(1)(i) state that where a lender makes a referral to a borrower the condition for providing an Affiliated Business Disclosure (AfBA) may be satisfied as part of and at the time of the GFE. Does this mean the lender does not have to give a separate AfBA disclosure if the information is part of the GFE?
    
    No. A separate AfBA must be given. The regulation means the AfBA may be given at the time the GFE is given if this is when the affiliate is referred or is required to be used (a lender may require the use of an appraisal, credit reporting company, or attorney).
    
    
35. Must a mortgage broker disclose payments he receives that the borrower does not pay for directly?
    

    Yes. The mortgage broker must disclose all payments and fees he receives whether they are received directly from the borrower or indirectly from the lender.

36. If I have a question concerning the calculation of the "Annual Percentage Rate" or "APR", can HUD answer it?
    

    The calculation of the APR is part of the Truth-in-Lending Act (TILA) which is administered by the Federal Reserve Board. Questions concerning TILA as well as Section 32 (high cost loan disclosure) may be directed to the Federal Reserve Board at               (202) 452-3693       .

37. May a settlement service provider charge a fee that reflects its own fee plus any recording fees as the servicer provider's fee? Example: An attorney charges $500 for its services and the county charges $30 for recording fees. May the attorney simply charge the consumer $530 and pay the county as a cost of doing business?
    

    No. The "Line Item" instructions to the HUD-1 state that "[f]or all items except for those paid to and retained by the lender, the name of the person or firm ultimately receiving the payment should be shown." The attorney must disclose all entities ultimately receiving the fee.

38. May real estate agents that are independent contractors be considered employees under the "employer-employee" exemption, for purposes of being allowed to be paid referral fees from employers?
    

    No. The exemption applies only to bona-fide employees.

39. If the borrower's escrow account includes a surplus greater than $50 which HUD's rules require be refunded, may the servicer credit the surplus directly to the principal, rather than refund the surplus to the borrower?
    

    No. However, the servicer may inform the borrower in the information accompanying the return of the surplus that the borrower may elect to use the refund to reduce principal or have it credited against the next year's escrow payments.

40. If there is a surplus in the escrow account and the borrower is in default, may the servicer retain the surplus as payment towards the amount in default?
    

    HUD's escrow rules are inapplicable to loans that are in default, which is defined under the RESPA rules as current payments which are more than 30 days delinquent. The parties should consult the mortgage documents or state law to resolve whether escrow funds are available for this purpose.

41. May a consumer delay or avoid a mortgage transaction if it discovers that there exists a RESPA violation?
    

    No. RESPA specifically provides that it does not affect the validity or enforceability of any sale or contract for the sale of real property, or any agreement arising in connection with a federally-related mortgage loan.

42. How should I report a violation of RESPA?

    You should send a written complaint describing the practice that you believe violates RESPA. The complaint should include the names, addresses and phone numbers of the alleged violators. It is preferred that you include your name and phone number in case an investigator wishes to ask further questions. You may request confidentiality. Send the complaint to:

    U.S. Department of HUD
    Office of RESPA and Interstate Land Sales
    451 7th Street, SW, Room 9154
    Washington, DC 20410

43. You may also wish to send a complaint to State and other Federal agencies that have the responsibility for regulating the settlement providers engaged in the referenced practice.

(3) We audit your loan file to see if HOEPA was violated:

Here is some basic information about HOEPA from the Federal Trade Commission Website:

High-Rate, High-Fee Loans (HOEPA/Section 32 Mortgages)

If you're refinancing your mortgage or applying for a home equity installment loan, you should know about the Home Ownership and Equity Protection Act of 1994 (HOEPA). The law addresses certain deceptive and unfair practices in home equity lending. It amends the Truth in Lending Act (TILA) and establishes requirements for certain loans with high rates and/or high fees. The rules for these loans are contained in Section 32 of Regulation Z, which implements the TILA, so the loans also are called "Section 32 Mortgages." Here's what loans are covered, the law's disclosure requirements, prohibited features, and actions you can take against a lender who is violating the law.

What Loans Are Covered?

A loan is covered by the law if it meets the following tests:

• for a first-lien loan, that is, the original mortgage on the property, the annual percentage rate (APR) exceeds by more than eight percentage points the rates on Treasury securities of comparable maturity;
• for a second-lien loan, that is, a second mortgage, the APR exceeds by more than 10 percentage points the rates in Treasury securities of comparable maturity; or
• the total fees and points payable by the consumer at or before closing exceed the larger of $561 or eight percent of the total loan amount. (The $561 figure is for 2008. This amount is adjusted annually by the Federal Reserve Board, based on changes in the Consumer Price Index.) Credit insurance premiums for insurance written in connection with the credit transaction are counted as fees.

The rules primarily affect refinancing and home equity installment loans that also meet the definition of a high-rate or high-fee loan. The rules do not cover loans to buy or build your home, reverse mortgages or home equity lines of credit (similar to revolving credit accounts).

What Disclosures Are Required?

If your loan meets the above tests, you must receive several disclosures at least three business days before the loan is finalized:

• The lender must give you a written notice stating that the loan need not be completed, even though you've signed the loan application and received the required disclosures. You have three business days to decide whether to sign the loan agreement after you receive the special Section 32 disclosures.
• The notice must warn you that, because the lender will have a mortgage on your home, you could lose the residence and any money put into it, if you fail to make payments.
• The lender must disclose the APR, the regular payment amount (including any balloon payment where the law permits balloon payments, discussed below), and the loan amount (plus where the amount borrowed includes credit insurance premiums, that fact must be stated). For variable rate loans, the lender must disclose that the rate and monthly payment may increase and state the amount of the maximum monthly payment.

These disclosures are in addition to the other TILA disclosures that you must receive no later than the closing of the loan.

What Practices Are Prohibited?

The following features are banned from high-rate, high-fee loans:

• All balloon payments - where the regular payments do not fully pay off the principal balance and a lump sum payment of more than twice the amount of the regular payments is required - for loans with less than five-year terms. There is an exception for bridge loans of less than one year used by consumers to buy or build a home: In that situation, balloon payments are not prohibited.
  
• Negative amortization, which involves smaller monthly payments that do not fully pay off the loan and that cause an increase in your total principal debt.
  
• Default interest rates higher than pre-default rates.
  
• Rebates of interest upon default calculated by any method less favorable than the actuarial method.
  
• A repayment schedule that consolidates more than two periodic payments that are to be paid in advance from the proceeds of the loan.
• Most prepayment penalties, including refunds of unearned interest calculated by any method less favorable than the actuarial method. The exception is if:
  • the lender verifies that your total monthly debt (including the mortgage) is 50 percent or less of your monthly gross income;
    
  • you get the money to prepay the loan from a source other than the lender or an affiliate lender; and
    
  • the lender exercises the penalty clause during the first five years following execution of the mortgage.
• A due-on-demand clause. The exceptions are if:
  • there is fraud or material misrepresentation by the consumer in connection with the loan;
    
  • the consumer fails to meet the repayment terms of the agreement; or
  • there is any action by the consumer that adversely affects the creditor's security.

Creditors also may not:

• make loans based on the collateral value of your property without regard to your ability to repay the loan. In addition, proceeds for home improvement loans must be disbursed either directly to you, jointly to you and the home improvement contractor or, in some instances, to the escrow agent.
  
• refinance a HOEPA loan into another HOEPA loan within the first 12 months of origination, unless the new loan is in the borrower's best interest. The prohibition also applies to assignees holding or servicing the loan.
  
• wrongfully document a closed-end, high-cost loan as an open-end loan. For example, a high-cost mortgage may not be structured as a home equity line of credit if there is no reasonable expectation that repeat transactions will occur.

How Are Compliance Violations Handled?

You may have the right to sue a lender for violations of these new requirements. In a successful suit, you may be able to recover statutory and actual damages, court costs and attorney's fees. In addition, a violation of the high-rate, high-fee requirements of the TILA may enable you to rescind (or cancel) the loan for up to three years.

(4) We audit your loan file to see if the ARM was adequately disclosed

When interest rates change, especially when they rise, ARM adjustements become much more complicated and Indexes play into the picture.  These ecoomic forces can wreak disaster on improper disclosures.  ARM program disclosures must be provided as soon as a customer asks about an ARM program. 

(5) We look at whether costs and fees were excessive/predatory

     If we can find a legal violation of any of these statutes we can seek an appropriate remedy in a Court of law.  These remedies may include monetary damages, punitive damages, attorney fees, court costs, rescission of your loan, restitution and/or a loan modification.  Note: By performing an audit we are under no obligation to take your case and file a lawsuit.  Attorney retains the discretion whether or not to file any case.  The audit will be written in such a way that any anttorney can review our findings and decide if they want to file a lawsuit on your behalf.

     A lender faced with the prospects of an attorney filing a lawsuit is faced with a difficult decision: (a) modify the Client's loan as an act that seeks to take accountability for their non-compliance with serious loan and mortgage laws, or (b) face the prospects of losing in court to a jury that may be largely unsympathetic to these lenders who have largely caused the economic crises we are facing?  Let's not forget this bailout is touted as a bailout for lenders.  People are not at all happy about this.  If we find a serious loan compliance error or ommission in your loan files following a loan audit, we will be in a very strong position to compel the lender to give you the loan modification you so badly need.

     Call us to discuss pricing for our service.  This is a detailed loan audit that identifies potential lender errors such as Truh in Lending, RESPA, and HOEPA, Failure to Disclose, YSP problems, Broker Failure to Disclose and more.  A Typical audit can run from 4-20 pages and can provide the ammunition you need to accomplish your real estate objectives and may be the document that saves you from foreclosure. 

This price assumes you have a complete copy of your loan file signed at closing of escrow.  If you do not have a copy of these files we can obtain your loan file by making a RESPA demand.  An additional fee of $250 applies in this case and the borrower must sign an authorization form.  The lender has 20 days to comply with our RESPA demand.

GOOD REASONS TO HAVE YOUR LOAN AUDITED BY AN ATTORNEY

(1) You have negotiated your own loan modification and the lender wants you to relinquish your rights in a new loan modification agreement.  Send us the loan modification agreement your lender sent you and have us review it.  At the same time, have your loan audited.  You may be able to negotiate a better deal than you have now.  Would it be worth your investment to save 1% over the life of your loan or to compel a principle reduction if these items are possible?  Note there are no guarantees we will be able to obtain a principal reduction.  This is certainly the hardest thing to obtain.

(2) Even if you are not late on your mortgage (which in today's loan modification market means noone wants to deal with you as far as banks go) have your file audited and see if the tune changes.  After all, if you find a legal error, doesn't that give you a potential right to sue your bank or lender or do you have to wait until you are late on your mortgage to sue your bank?  Keep in mind, in the legal world, statutes of limitations are always running.  Another reason to have your loan audited now.

(3) You are trying to negotiate a short sale and the bank wont play ball.  Would it make sense to identify potential federal loan non-compliance errors in the loan file to literally force the bank to take your deal, or to at least move quicker in getting a deal done?  Think about it.  A forensic loan compliance audit may be just the trick you are looking for.

(4) Broker Junkyard:  Brokers, do you have files sitting on your desk, literally collecting dust?  You want to get them mopving and your Client is basically harassing you wondering what the status of his loan is?  Reccomend a forensic loan audit be conducted by a California and Arizona real estate and loan modification attorney (loss mitigation).  A detailed and comprehensive forensic loan audit just may serve as the catalyst to get the file off your desk and keep the homeowner in their home.

Contact us for more details or to get started today.  Even if you are not yet late on your home loan the time to audit your mortgage loan file(s) is RIGHT NOW. Strict legal deadlines and statutes of limitations may be at play.  Our Service allows you to get peace of mind fairly quick (we normally return out mortagage loan audit results within 7-14 days in most cases) More information about our attorney loan modification program can be found at www.AttorneyMods.com. If a lawsuit is required, and assuming Attorney agrees to take the case (attorney reserves the sole discretion in this regard) a litigation fee structure will be discussed that may include a hybrid fee/contingency.* 

*Note: Attorney has sole discretion whether or not to engage in any loan modification work or lawsuit work following any loan audit, and therefore attorney is never obligated to perform any legal work not specifically contracted for in Attorneys retainer agreement.  By accepting any legal work Attorney has no obligation to accept any additional or future legal work including filing any lawsuit(s) or performing any loan modification services and is therefore not obligated to file a lawsuit, perform any addtional legal services not specifically contracted for in Attorney's retainer agreement.

Because most of our California loan modification and loan auditing work can be done, and is done, by phone fax and email between us and you we are able to serve our California clients in the following California Counties and Cities

Alameda
Albany
Berkeley
Dublin
Emeryville
Fremont
Hayward
Livermore
Newark
Oakland
Piedmont
Pleasanton
San Leandro
Union City
Amador
Amador City
Ione
Jackson
Plymouth
Sutter Creek
Chico
Gridley
Oroville
Paradise
Angels Camp
Colusa
Colusa
Williams
Antioch
Brentwood
Clayton
Concord
Danville
El Cerrito
Hercules
Lafayette
Martinez
Moraga
Orinda
Pinole
Pittsburg
Pleasant Hill
Richmond
San Pablo
San Ramon
Walnut Creek
Crescent City
Placerville
South Lake Tahoe
Clovis
Coalinga
Firebaugh
Fowler
Fresno
Huron
Kerman
Kingsburg
Mendota
Orange Cove
Parlier
Reedley
San Joaquin
Sanger
Selma
Orland
Willows
Humboldt
Arcata
Blue Lake
Eureka
Ferndale
Fortuna
Rio Dell
Trinidad
Imperial
Brawley
Calexico
Calipatria
El Centro
Holtville
Westmorland
Inyo
Bishop
Kern
Arvin
Bakersfield
California City
Delano
Kern County
Maricopa
McFarland
Ridgecrest
Shafter
Taft
Tehachapi
Wasco
Avenal
Corcoran
Hanford
Lemoore
Lake
Clearlake
Lakeport
Susanville
Los Angeles
Agoura Hills
Alhambra
Arcadia
Artesia
Azusa
Baldwin Park
Bell
Bell Gardens
Bellflower
Beverly Hills
Bradbury
Burbank
CalabasCarson
Cerritos
Claremont
Commerce
Compton
Covina
Cudahy
Culver City
Diamond Bar
Downey
Duarte
El Monte
El Segundo
Gardena
Glendale
Glendora
Hawaiian Gardens
Hawthorne
Hermosa Beach
Hidden Hills
Huntington Park
Industry
Inglewood
Irwindale
La Canada-Flintridge
La Habra Heights
La Mirada
La Puente
La Verne
Lakewood
Lancaster
Lawndale
Lomita
Long Beach
Lynwood
Malibu
Manhattan Beach
Maywood
Monrovia
Montebello
Monterey Park
Norwalk
Palmdale
Palos Verdes Estates
Paramount
Pasadena
Pico Rivera
Pomona
Rancho Palos Verdes
Redondo Beach
Rolling Hills
Rolling Hills Estates
Rosemead
San Dimas
San Fernando
San Gabriel
San Marino
Santa Clarita
Santa Fe Springs
Santa Monica
Sierra Madre
Signal Hill
South El Monte
South Gate
South Pasadena
Temple City
Torrance
Vernon
Walnut
West Covina
West Hollywood
Westlake Village
Whittier
Chowchilla
Madera
Marin
Belvedere
Corte Madera
Fairfax
Larkspur
Mill Valley
Novato
Ross
San Anselmo
San Rafael
Sausalito
Tiburon
Mariposa
Mendocino
Fort Bragg
Point Arena
Ukiah
Willits
Merced
Atwater
Dos Palos
Gustine
Livingston
Los Banos
Merced
Modoc
Alturas
Mono
Mammoth Lakes
Monterey
Carmel
Del Rey Oaks
Gonzales
Greenfield
King City
Marina
Monterey
Pacific Grove
Salinas
Sand City
Seaside
Soledad
Napa
American Canyon
Calistoga
Napa
St. Helena
Yountville
Nevada
Grass Valley
Nevada City
Truckee
Orange
Anaheim
Brea
Buena Park
Costa Mesa
Cypress
Dana Point
Fountain Valley
Fullerton
Garden Grove
Huntington Beach
Irvine
La Habra
La Palma
Laguna Beach
Laguna Hills
Laguna Niguel
Lake Forest
Los Alamitos
Mission Viejo
Newport Beach
Orange
Placentia
San Clemente
San Juan Capistrano
Santa Ana
Seal Beach
Stanton
Tustin
Villa Park
Westminster
Yorba Linda
Placer
Auburn
Colfax
Lincoln
Loomis
Rocklin
Roseville
Plumas
Portola
Riverside
Banning
Beaumont
Blythe
Calimesa
Canyon Lake
Cathedral City
Coachella
Corona
Desert Hot Springs
Hemet
Indian Wells
Indio
La Quinta
Lake Elsinore
Moreno Valley
Murrieta
Norco
Palm Desert
Palm Springs
Perris
Rancho Mirage
Riversi
San Jacinto
Temecula
Folsom
Galt
Isleton
Sacramento
San Benito
Hollister
San Juan Bautista
San Bernardino
Adelanto
Apple Valley
Barstow
Big Bear Lake
Chino
Chino Hills
Colton
Fontana
Grand Terrace
Hesperia
Highland
Loma Linda
Montclair
Needles
Ontario
Rancho Cucamonga
Redlands
Rialto
Twentynine Palms
Upland
Victorville
Yucaipa
Yucca Valley
San Diego
Carlsbad
Chula Vista
Coronado
Del Mar
El Cajon
Encinitas
Escondido
Imperial Beach
La Mesa
Lemon Grove
National City
Oceanside
Poway
San Marcos
Santee
Solana Beach
Vista
San Francisco
San Joaquin
Escalon
Lathrop
Lodi
Manteca
Ripon
Stockton
Tracy
Arroyo Grande
Atascadero
Grover Beach
Morro Bay
Paso Robles
Pismo Beach
San Luis Obispo
San Mateo
Atherton
Belmont
Brisbane
Burlingame
Colma
Daly City
East Palo Alto
Foster City
Half Moon Bay
Hillsborough
Menlo Park
Millbrae
Pacifica
Portola Valley
Redwood City
San Bruno
San Carlos
San Mateo
South San Francisco
Woodside
Santa Barbara
Buellton
Carpinteria
Guadalupe
Lompoc
Santa Barbara
Santa Maria
Solvang
Santa Clara
Campbell
Cupertino
Gilroy
Los Altos
Los Altos Hills
Los Gatos
Milpitas
Monte Sereno
Morgan Hill
Mountain View
Palo Alto
San Jose
Santa Clara
Saratoga
Sunnyvale
Santa Cruz
Capitola
Santa Cruz
Scotts Valley
Watsonville
Shasta
Anderson
Redding
Shasta Lak
Sierra
Loyalton
Siskiyou
Dorris
Dunsmuir
Etna
Fort Jones
Montague
Mount Shasta
Tulelake
Weed
Yreka
Solano
Benicia
Dixon
Fairfield
Rio Vista
Suisun City
Vacaville
Vallejo
Sonoma
Cloverdale
Cotati
Healdsburg
Petaluma
Rohnert Park
Santa Rosa
Sebastopol
Sonoma
Windsor
Stanislaus
Ceres
Hughson
Modesto
Newman
Oakdale
Patterson
Riverbank
Turlock
Waterford
Sutter
Live Oak
Yuba City
Tehama
Corning
Red Bluff
Tehama
Trinity
Tulare
Dinuba
Exeter
Farmersville
Lindsay
Porterville
Tulare
Tulare
Visalia
Woodlake
Tuolumne
Sonora
Ventura
Camarillo
Fillmore
MoorpaOjai
Oxnard
Port Hueneme
Santa Paula
Simi Valley
Thousand Oaks
Ventura
Yolo
Davis
West Sacramento
Winters
Woodland
Yuba
Marysville
Wheatland

              Loan modification work is primarily driven by phone, fax and email with you and the lenders.

As a consequence we are able to serve Arizona loan modification clients in the following Arizona cities:
 
Tucson
Mesa
Glendale
Chandler
Scottsdale
Gilbert
Tempe
Peoria
Yuma
Surprise
Avondale
Flagstaff
Lake Havasu City
Goodyear
Sierra Vista
Prescott
Oro Valley
Bullhead City
Apache Junction
Prescott Valley
Casa Grande
El Mirage
Marana
Kingman
Buckeye
Fountain Hills
San Luis
Nogales
Florence
Douglas
Queen Creek
Maricopa
Payson
Sahuarita
Paradise Valley
Chino Valley
Eloy
Sedona
Cottonwood
Camp Verde
Show Low
Winslow
Somerton
Safford
Coolidge
Globe
Page
Bisbee
Tolleson
Youngtown
Wickenburg 
South Tucson
Guadalupe
Holbrook
Snowflake
Cave Creek
Benson
Thatcher
Litchfield Park
Eagar
Pinetop-Lakeside
Taylor
Colorado City
Dewey-Humboldt
Willcox
St. Johns
Carefree 
Clarkdale 
Quartzsite 
Parker
Superior 
Williams
Clifton
Kear
Pima 
Springerville
Star Valley
Gila Bend
Wellton
Miami
Huachuca City
Mammoth
Tombstone
Fredonia
Patagoni
Hayden
Dunca
Winkelman
Jerome

This is an advertisement and communication pursuant to State Bar Rules.  The Law Offices of Steven C. Vondran is licensed in California and Arizona.  We only seek to represent clients in these states.