Forensic Loan Audits are Bad News! Are They?

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) February 27, 2009 -- Whoa...

First off, a Forensic Loan Audit is a tool.

The Forensic Loan Audit (FLA) was created to identify violations of two very specific laws, Real Estate Settlement & Procedures Act(RESPA) and Truth in Lending Act (TILA).

These laws have been on the books for many years. They were designed to protect the consumer from unscrupulous dealings by lenders placing the unsuspecting consumer in financial harms way in purchasing credit to obtain consumer goods and services.

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Forensic Loan Audits are Bad News! Are They?

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These laws heavily focus on credit but address mortgages and lending as they are also forms of credit too.

Until recently very few knew about these laws. In fact the average attorney may have had a few question on the bar exam but very few are properly trained or worse understand these two laws.

There is a very good reason for this. There is no money in defending violation of consumer credit. Attorneys have to live too. In fact you will find the most experienced legal practitioners in this area of law are legal aid attorneys who primarily represent the indigent in our society.

Recently there were changes made to both TILA and RESPA to give them more "teeth" as knowledge of widespread corruption and illegal activities among lenders became more and more
apparent despite the fact that these consumer protection laws exist.

Do they work? From what I am seeing with the clients I have provided this service to, it works.

The Judicial system take a hard line to these laws and penalties can be step with Knowledgable representation. Because a lender can be severely fined and even jailed when found in violation of these laws, not to mention having to pay all attorney fees, lenders now take these laws very serious too.

With FLA lenders are more receptive to negotiating a loan modification in the borrowers favor. They are more likely to forestall foreclosure as their first line of defense against bad debts.

When a charge is made of violation of these two laws foreclosures proceedings are suspended until the case is settled or after litigation proceeding are concluded in a court of law.

The problem is even though the government has created programs for voluntary loan modifications, they are not working. The major reason they are not working is 1. The lender doesn't modify in the interest of the lender. They modify in their interest. 2. The second reason, I believe they are not

working is because with that 700 Billion dollar bail-out, they were not made mandatory.

I suspect as more and more loan modifications fail because of the aforementioned reasons the "cram-down method" will be applied.

A third indirect problem is when you have laws that are not regularly applied and Where very few in the legal field understand them, you get widespread confusion when it is finally applied in the "real" world.

Dispite the challenges there are a handful of attorneys scattered across the nation that understand how to apply this law.

By the way, FLA are done by Loan Originators, Underwriters and CPA's. They are very rarely done by attorneys. Often times these professionals are call in to testify as expert witnesses in Foreclosure cases. The issue with FLA is accuracy, speed and cost in determining who you want to perform yours.

However, attorneys and so-called loan modification outfits do use FLA's to build leverage against lenders that are resistant to performing a fair loan modification for the borrower. The Operative is fair. Loan Modifications at least through banks are free when done on your own. The problem is are they fair and do they consider the borrowers circumstance. In most cases they don't. Hence you see a truck load of Loan Modification outfits springing up all over the place. Trust me, these outfits rake in huge sums of money from the consumer market. That's another story.

In conclusion, with many fighting back against foreclosure you will see more and more FLA's being performed and successfully identifying the key violation to build a case either for loan modification - in all it's forms and in rare cases rescission of the loan all together.

If you want to get the facts about TILA and respa or Forensic Loan Audits
go to http://housing-now.com/investors/p/?/FLA.html today. You'll be glad
you did. You'll also learn the 3 magic words that can halt a foreclosure dead
in its tracks.

More information can be found online at http://housing-now.com/investors/p/?/FLA.html

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