What Is A Loan Audit?
What Is A Loan Audit?
In the current economic climate, millions of homeowners are struggling to afford the price of their homes. In many cases, the original value on the loan doesn't reflect the actual value of the property. It was purchased at the height of the boom, when inflated prices across the country and lending structures designed to provide anyone with money regardless of credit or ability to pay led to dramatically overinflated costs and unwise decisions. Inevitably, that led to a crash, and the crash is what led to the current recession. In the wake of the crisis, government officials, bankers, lawyers, and homeowners have all scrambled to determine a solution. The homes can't be sold, the homeowners can't pay – modifications, reductions, and reclassifications have all been raised. A loan audit is different from all of these things. It doesn't actually change the circumstances of your payment, although it may reveal actionable evidence of misconduct on the part of the lender (more on that later). It serves a useful purpose, but only if done by someone who knows how to use it properly for the benefit of the homeowner.
A Careful Look At Your Documents
The main purpose of a forensic audit is to gain an understanding of the process that led to your current mortgage situation. This means that a good audit will start with the most basic and fundamental aspects of the entire process. The goal will be to evaluate whether there were any mistakes made in the process which might invalidate or complicate the situation from the lender's side.
It's important to note that even if there are errors discovered and you are able to bring a suit as the result of a loan audit, there is no guarantee that doing so will impact what you owe. You might be able to obtain a judgment in your favor from a court, but that doesn't mean that the lender will therefore be required to modify your current payment structure or that you would have more leverage.
The Problem With Guarantees
The line between a beneficial and honest loan audit and one that is less helpful is typically whether or not a guarantee is offered. Unlike many fields, here you actually don't want to trust a company that guarantees results. The reason is simple: until they are able to conduct their research and explore the details of your case, it's impossible for any company to know whether or not you will get any actionable evidence at all from the investigation. The only guarantee that can work is a guarantee that they will work as hard as they can and make their best effort.
In the current economic climate, millions of homeowners are struggling to afford the price of their homes. In many cases, the original value on the loan doesn't reflect the actual value of the property. It was purchased at the height of the boom, when inflated prices across the country and lending structures designed to provide anyone with money regardless of credit or ability to pay led to dramatically overinflated costs and unwise decisions. Inevitably, that led to a crash, and the crash is what led to the current recession. In the wake of the crisis, government officials, bankers, lawyers, and homeowners have all scrambled to determine a solution. The homes can't be sold, the homeowners can't pay – modifications, reductions, and reclassifications have all been raised. A loan audit is different from all of these things. It doesn't actually change the circumstances of your payment, although it may reveal actionable evidence of misconduct on the part of the lender (more on that later). It serves a useful purpose, but only if done by someone who knows how to use it properly for the benefit of the homeowner.
A Careful Look At Your Documents
The main purpose of a forensic audit is to gain an understanding of the process that led to your current mortgage situation. This means that a good audit will start with the most basic and fundamental aspects of the entire process. The goal will be to evaluate whether there were any mistakes made in the process which might invalidate or complicate the situation from the lender's side.
It's important to note that even if there are errors discovered and you are able to bring a suit as the result of a loan audit, there is no guarantee that doing so will impact what you owe. You might be able to obtain a judgment in your favor from a court, but that doesn't mean that the lender will therefore be required to modify your current payment structure or that you would have more leverage.
The Problem With Guarantees
The line between a beneficial and honest loan audit and one that is less helpful is typically whether or not a guarantee is offered. Unlike many fields, here you actually don't want to trust a company that guarantees results. The reason is simple: until they are able to conduct their research and explore the details of your case, it's impossible for any company to know whether or not you will get any actionable evidence at all from the investigation. The only guarantee that can work is a guarantee that they will work as hard as they can and make their best effort.
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