If you are a loan modification attorney it can get frustrating approaching a lender to request a mod on behalf of a client and being turned down. Worse yet, getting turned down and with no good reason offered. You have to go back to your client and deliver the bad news.
However, 83% of US loans are frought with lender violations of one applicable law or another. TILA, RESPA, HOEPA, a state law, ECOA, or one of over 80 laws that can be violated. Many of these violations provide your client with a right to rescission of their loan. Instead of facing foreclosure, your client could instead turn the tide of negotiation in their favor. And you’ll be hero.
It all begins with a loan audit. That’s where you can see if there are any violations of your client’s loan. Your loan auditor will provide you with a comprehensive report, detailing missing documents or other violations of your client’s loan and an analysis of what it may mean to your client financially and legally. Click the link to view a sample loan audit.
Your loan auditor can provide a comprehensive report and help you identify areas that are key negotiating points in the loan modification process. Get more information on the loan auditing process.
Many homeowners, when they face foreclosure, get desperate and end up selling their home for less than it is worth. They’ll either get taken in by the snazzy sales talk of a smooth talking real estate investor or attempt to short sale their own home in order to save their credit. Neither option may be necessary. Before you advise a client to sell for less in order to get out of a credit-killing foreclosure settlement, order a loan document review and know the facts.
A document review can uncover several key facts that will help you and your client negotiate a better settlement from the lender. Banks don’t want to own the property. They’ll just get stuck with it and it will be a liability for them, not an asset. That’s the last thing they want.
Instead, they’d rather help a homeowner stay in the home. But they don’t offer loan modifications on a silver platter. You or your client has to request it. And then you may not be approved unless you can show a compelling reason why it’s necessary. That’s where the loan document review comes in.
The document review will show you if the lender has violated any local, state, or federal law. Even minor infractions can be enough to win at the negotiating table. Some lender violations can result in heavy fines or refunds to the borrower. Therefore, a bank will willingly settle on amicable and equitable terms with the borrower rather than pay huge amounts of money for a small mishap. Wouldn’t you?