Forensic Mortgage Loan Audits

7/7/2010

Lexington, KY - As the down economy continues, so do foreclosures. Your Better Business Bureau has warned you in the past about foreclosure rescue scams. The newest twist on these is the forensic mortgage loan audit scam.

In exchange for a several hundred dollars or more up front, so-called forensic loan auditors or mortgage loan auditors backed by forensic attorneys offer to review your mortgage documents to determine whether your lender complied with state and federal mortgage lending laws.

The “auditors” say you can use the audit report to avoid foreclosure, speed up the loan modification process, reduce your loan principal, or even cancel your loan. The Federal Trade Commission says not true!

    According to the FTC:
  • there is no evidence that forensic loan audits will help you get a loan modification or other relief, even if conducted by a licensed, legitimate professional.
  • some federal laws allow you to sue your lender based on errors in your loan documents. But even if you sue and win, your lender is not required to modify your loan just to make your payments more affordable.
  • if you cancel your loan, you will lose your home and must return the money you borrowed to your lender.

If you are facing foreclosure, seek free advice from the Kentucky Homeownership Protection Center in Frankfort at protectmykyhome.org.

Avoid any company that tells you stop talking to your lender or attorney, and run away if they want several hundred dollars for their services up front. If any of those things happen, don't fall for it.

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Be a "Don’t Fall for It!" informant! If you have something to share you believe may be a fraudulent offer or scam, please let the BBB know! Call us at (859) 259-1008 or toll-free, 1-800-866-6668, or email us at info@lexbbb.com.