Learn about the loan modification process and discover how a forensic loan audit from National Loan Auditors may lead to a successful workout solution in this interview with NLA's Legal Portal Manager, Stephen Hoshida:
As the Nation’s housing crisis continues, thousands of homeowners struggling with unmanageable mortgage debt are desperate for a solution that will bring them financial relief. Predatory lending practices and subprime loans have forced an overwhelming number of loan borrowers into bankruptcy and foreclosure, and economists predict an even further decline in the real estate market as the country remains in recession. Despite the unpromising outlook foreseen by residential property analysts, there is still hope for America’s mortgage holders – relief is available and National Loan Auditors can help.
With recent legislation and lenders willing (or even required by law) to negotiate, the terms of a home loan can be modified in favor of the borrower to allow reduced monthly payments, an extension of the loan terms, or even the lowering of an entire balance due on the mortgage itself. A forensic loan audit, performed in the initial stages of the loan modification process, may uncover violations in the loan that would obligate the lender to modify mortgage terms and give borrowers legal recourse against the mortgagee should a lawsuit be filed. The forensic experts at National Loan Auditors thoroughly examine financial documents for validity and utilize state-of-the-art technology to ensure accurate and reliable results. Both a comprehensive forensic loan audit and a successful loan modification can alleviate budget strains and help families avoid bank foreclosure.
If a forensic loan audit can spot predatory lending practices and a loan modification can prevent a foreclosure sale, why don’t all homeowners modify their loans? The primary reason, unfortunately, may be that obtaining a loan modification can be a lengthy and difficult process to manage alone. Most debtors, a majority of whom do not have a legal background, have questions that require answers before taking any action, and rightfully so – failure to successfully bargain with a mortgage holder could mean foreclosure in the future.
Like any case involving legally binding contracts, the help of an experienced professional is often necessary. An attorney or loan modification company specializing in mortgage law can provide the assistance needed in order to reach an agreement with the lender. With a mutual goal of helping homeowners save their homes and avoid foreclosure, National Loan Auditors works with top attorney-based modification firms to deliver the only legally-reviewed forensic loan audit report available in the mortgage industry.
Stephen Hoshida, Manager of National Loan Auditors’ Legal Portal, understands the concerns of homeowners and recognizes the issues that attorneys and modification companies may face. In this two-part interview, Mr. Hoshida answers some important questions that explain the loan modification process and how a forensic loan audit from National Loan Auditors can lead to a successful loan workout solution.
- What advice do you have for homeowners seeking a loan modification in order to avoid foreclosure?
- My advice to homeowners contemplating loan modification would be to act sooner rather than later. If you are already late on your payments then the lender has already put into motion the inevitable foreclosure. Loan modifications take time so you do not want to wait until the last moment to seek help. Even if you are not late, but you foresee financial difficulties in the future, take proactive action to obtain a loan modification.
- What steps should a homeowner take to prepare for the loan modification process?
- Get organized. There are 3 areas of information that are crucial to obtaining a loan modification.
- The first is the documents pertaining to the original mortgage transaction. Homeowners should get as much documentation from when their loan was originated and have it ready to be used as the basis of a forensic loan audit. This will include digging out the old shoe box of loan documents from when you originally obtained the loan. I would also suggest the homeowner requests a set of the lenders documents before you perform a forensic loan audit. This may not always be feasible since this takes 30-60 days, but if you can obtain the lenders package it will save time later on.
- Secondly the homeowner needs to have all the information about what has happened to the loan since it was originated. Has the loan been sold? Was the homeowner ever charged late fees? Has the interest rate adjusted? All of this information is relevant and should be documented in some way. By getting these together before starting your loan modification you will expedite the process.
- Third the homeowner needs to have a firm grasp on their financial situation and have supporting documentation to prove their income. This will take the form of pay stubs, tax returns, and bank statements.
- How does an audit contribute to the loan modification process?
- A forensic loan audit is an integral part of a loan modification. The forensic loan audit allows a homeowner to see what statutory regulations a lender violated when originating the mortgage. This allows the homeowner to work with the lender from a position of strength. The homeowner tells the lender, “There were serious violations made when my loan was originated, I could sue you and create a huge legal battle, or you could just give me a good loan modification.” Basically, the forensic loan audit gives the homeowner more leverage in working with the lender.
NEXT: Stephen Hoshida answers more questions about forensic loan auditing and the loan modification process in Part II of our interview series. Get free updates! Subscribe to this blog for the latest news and features from National Loan Auditors!
Source: National Loan Auditors, Inc.
http://www.NLAudit.com
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