By Christine Springer
A loan audit is still a valid way to determine what's wrong with the loan documents, which could give attorneys the leverage to renegotiate a loan modification and litigate, if necessary.
I am beginning a series of posts that will outline all the ways a loan audit may be used. In this post, I will list them all and each of the applications will have a dedicated post explaining more on their use for a specific reason.
Here are all the ways I have worked with loan audits in the past eight years:
1 Loan modifications
2 Chapter 13 adversary proceedings
3 Litigation to stop a foreclosure sale in a non-judicial foreclosure state
4 Homeowner education and decision making relating to foreclosures
Here are some new ways that I audits may be useful:
5 Homeowner education in the pre-purchase phase, to avoid all the pitfalls we saw during the real estate bubble
6 Homeowner's Pre-Closing Audit This would be a different type of audit to ensure that the paperwork is in order before the transaction closes. It may not be necessary given the new mortgage disclosures, however.
7 Investors and Note Buyers may be able to buy notes with problems and create a wider profit margin on the notes they purchase
8 With attorney representation for real estate transactions. I think there is a strong case for hiring an attorney who understands foreclosure defense to provide representation. I think that the fast and loose days of giving loans to anyone are over, and perhaps consumers would be more receptive to this idea now.
9 Deficiency Lawsuits If the original lender did not have standing to foreclose, a third party debt buyer doesn't have standing, and I think this would be very easy to prove with an audit.
CHRISTINE E. SPRINGER IS NOT AN ATTORNEY AND THE CONTENT ON THIS WEBSITE IS NOT INTENDED TO BE LEGAL ADVICE.
PURSUANT TO FTC’S MARS RULE, SECTION 322.5: DESERT EDGE LEGAL SERVICES, LLC IS NOT ASSOCIATED WITH THE GOVERNMENT. OUR SERVICES ARE NOT APPROVED BY YOUR LENDER. EVEN IF YOU USE OUR SERVICES, YOUR LENDER MAY NOT AGREE TO CHANGE YOUR LOAN. IF YOU STOP PAYING YOUR MORTGAGE, YOU COULD LOSE YOUR HOME AND DAMAGE YOUR CREDIT RATING