Latest Scam..Foreclosure Loan Audits=BeWare!

Latest Scam..Foreclosure Loan Audits=BeWare!

Fraudulent foreclosure “rescue” professionals use half-truths and outright lies to sell services that promise relief to homeowners in distress. According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, the latest foreclosure rescue scam to exploit financially strapped homeowners pitches forensic mortgage loan audits.

In exchange for an upfront fee of several hundred dollars, so-called forensic loan auditors, mortgage loan auditors, or foreclosure prevention auditors backed by forensic attorneys offer to review your mortgage loan 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, accelerate the loan modification process, reduce your loan principal, or even cancel your loan.

Nothing could be further from the truth. According to the FTC and its law enforcement partners:

there is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if they’re conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer.
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 simply to make your payments more affordable.
if you cancel your loan, you will have to return the borrowed money, which may result in you losing your home.
If you are in default on your mortgage or facing foreclosure, you may be targeted by a foreclosure rescue scam. The FTC wants you to know how to recognize the telltale signs and report them. If you are faced with foreclosure, the FTC says legitimate options are available to help you save your home.

Spotting a Scam
If you’re looking for foreclosure prevention help, avoid any business that:

guarantees to stop the foreclosure process – no matter what your circumstances are
instructs you not to contact your lender, lawyer or credit or housing counselor
collects a fee before providing any services accepts payment only by cashier’s check or wire transfer
encourages you to lease your home so you can buy it back over time
recommends that you make your mortgage payments directly to it, rather than your lender
urges you to transfer your property deed or title to it
offers to buy your house for cash at a fixed price that is inappropriate for the housing market
pressures you to sign papers you haven’t had a chance to read thoroughly or that you don’t understand.
Finding Legitimate Help
Housing experts say that when you’re behind on your mortgage payments, maintaining communication with your lender is the most important thing you can do. Contact your lender or servicer immediately if you’re having trouble paying your mortgage or you have received a foreclosure notice. You may be able to negotiate a new repayment schedule.
What Do You Think?

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Interesting...

I've been reading about this lately and it's kind of scary for us investors, imho. What do *you* think?

Lisa

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"Persistence Pays, Procrastination Delays!" - smurfy

"I can do ALL things through Christ who strengthens me." - Philippians 4:13

"He will keep in perfect peace whose mind is stayed on thee" Isaiah 26:3

"Those who wait on the LORD Shall renew their strength; they shall mount up with wings like eagles, they shall run and not be weary, they shall walk and not faint." Isaiah 40:31

View my journal here: http://www.deangraziosi.com/real-estate-forums/investing-journals/59850/...


Hi Lisa!

Thank you for your comment. For further information on this subject & other real estate questions please go to www.askharryborders.com Harry is a very smart real estate attorney & I have the benefit to call him friend. For other cutting edge R/E information perhaps a visit to our award winning blog? www.glpwholesalesolutions.com/blog Also consider joining our "fund & Flip" page on Dean's site under "REI Clubs/groups". Thanks again Lisa for your interest & best of everything in your r/e investing future.


Hmm,

I actually thought a forensic loan audit was a legitimate thing and have actually recommended it. Are there any honest modification strategies? What really, really works? It made sense to me if the original documents were in violation of federal laws it would make the loan company stand up and fix its shady agreement that a consumer signed something that was knowingly against the law on the banks end. It made sense to me to recommend it because the bank would seemingly be forced to deal with legal violations. I'm glad I read this message before recommending it to anyone else!

But, my question still stands, what does really work to get a consumer the highest chance of result on a modification?

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Hi there Hmm!

Thank you for thinking out loud. If you really want to understand loan modification issues please allow me to direct you to an authority..my attorney friend Harry Borders. You can pose your question to this bright gentleman or to our friend Dean and be assured a truthful complete answer. Of course, ask Dean here on his website, ask Harry at www.askharryborders.com and don't forget to read our blog regularly at www.glpwholesalesolutions.com/blog & please don't forget to join us here at Dean's site in REI Clubs/Groups under "Fund & Flip". May your real estate ventures ALL turn out to your liking and thank you again for your interest.


Thanks

I'm already a member Smiling Thanks for your help Smiling

Lisa

__________________

"Persistence Pays, Procrastination Delays!" - smurfy

"I can do ALL things through Christ who strengthens me." - Philippians 4:13

"He will keep in perfect peace whose mind is stayed on thee" Isaiah 26:3

"Those who wait on the LORD Shall renew their strength; they shall mount up with wings like eagles, they shall run and not be weary, they shall walk and not faint." Isaiah 40:31

View my journal here: http://www.deangraziosi.com/real-estate-forums/investing-journals/59850/...


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