Forensic Loan Analysis – Guest Post
Many people resort to loan funding for huge financial investment projects. Devious lenders, however, do not provide proper guidance regarding the complicated loan processes. As a result, innocent victims get trapped in unaffordable mortgage issues forcing foreclosures.
WHAT IS FORENSIC LOAN ANALYSIS?
Forensic loan analysis is an exceedingly valuable tool to protect people against fraudulent lenders who are out to take advantage of them. A forensic loan analysis is a thorough study of the loan agreements, which would bring out frauds, if any, and make the client understand the terms of the loan in a much clearer and comprehensible manner. The procedure also examines violations in the Truth in Lending Act and the Real Estate Settlements and Procedures Act, all of which an ordinary citizen may not be aware of. After examining the whole agreement, an appointed attorney can take up the case with the lender and modify the loan and lower monthly terms, in order to protect the client and also prevent foreclosure.
HOW IT IS DONE
When the analysis begins, an attorney is appointed, who does a complete audit to look for unlawful miscalculations by the lender or the lending parties. They will look for failure to inform the borrower about significant facts such as prepayment penalty. All the miscalculations, law violations, unrealistic lender fees, etc. will be noted in the audit. If the loan agreement is found fraudulent or does not meet the federal statutes, the whole loan process can be stopped. The borrower then has the power to either modify the loan to their benefit, or be awarded damage compensations. This makes the process of forensic loan analysis extremely valuable.
Once it is clear that there has been a fraud on part of the lender, the client has many options open to protect him. With the help of the loan analysts, he can persuade the lender to modify the loan terms to suit his situation. He can also stop foreclosures if any, and even stop the entire loan procedure completely. He can also ask to get compensated for the damages. Most lenders do not want to enter litigation and, hence, will be ready to comply with renewed conditions that work in the client’s favor.
As soon as one sees mortgage troubles brewing up, it is best to seek forensic loan analysis. If a client faces a situation of mortgage and foreclosure, it is a good idea to approach an experienced attorney to seek help in taking the right decisions and for showing the best way to proceed.
All said and done, one must also be aware of fraudulent foreclosure rescue experts who place tall and unrealistic promises for rescuing clients. In exchange of a huge fee, imposters promise a total recovery of the loan and mortgages along with compensatory benefits, which is not always the case. There are laws governing these procedures and although the law allows for taking a fraudulent lender to task, it does not guarantee loan modification and compensation as claimed by fake auditors.
It is always best to choose loan analysts carefully and also avail of legitimate options to save oneself from foreclosure.
Ted Hansen writes at Forensic Accounting, where he shares his thoughts and experiences about managing finances. He hopes to enrich the lives of his readers with ideas on how to secure their businesses and families. He has an MBA in Marketing from Leeds Trinity University.