Tricks to Getting a Loan Modification Approved and Stopping Foreclosure

The real secret to getting your loan modificationDistrict Court in Ohio, many foreclosures cannot
approved and stopping foreclosure is to have aproceed because the actual loan owners are not the
forensic loan audit performed on your closing package.lenders that originally issued the loans - even though
A forensic loan investigation is performed to determinethe names of those original note holders continue to
whether your lender has committed fraud with yourappear in official records.
loan. These loan investigations review your file toBefore someone can lose their home in a foreclosure
determine if your lenders violated any of the Reala plaintiff must prove they actually own the note. In
Estate Settlement Procedures Act (RESPA) andmore than a dozen Ohio foreclosure cases Deutsche
Truth in Lending Act (TILA) and may entitle you to aBank said it owned various notes and mortgages and
better loan modification.Judge Boyko found in each case that the paperwork
The forensic loan audit process begins with a writtenactually identified the original lenders as the loan
RESPA request and demands your lender provide youowners and said nothing about Deutsche Bank and
with a copy of the closing package that was signed athad no legal grounds to foreclose because they did
closing when the loan was first obtained. This requestnot own the loans or have any authority to foreclose.
alone can be used as a stall tactic to delay theThe number goal of the forensic mortgage audit is to
foreclosure process further and give you leverage todetermine whether there were violations of federal
use against your lender when seeking for a loanlaw. If these violations are found, the borrower may be
modification.eligible for complete relief of the predatory loan or a
One of the biggest mistakes lenders and servicingvery favorable loan modification. Complete relief of the
companies make when filing foreclosure againstpredatory mortgage is called a "loan rescission".
homeowners is that they often file under the institutionsIn a loan rescission, the lender takes back the
name when they may not even own the mortgage or"predatory loan" and credits back the borrower all the
note. Legally, the only one who can foreclose is theinterest made on payments including any origination or
one who holds the note. When Ginnie Maes were thediscount fees. If the loan rescission is not warranted
Wall Street wonders, investors bought and soldthe next best option is to meditate the loan with your
mortgage backed securities multiple times and pooledlender and fight for a substantial loan modification
billions of dollars of mortgages together and sold thembased on legal violations of the loan. In these cases,
off to pension funds and mutual funds as well aseveryone wins because the homeowner keeps their
many other types of investors. Where this becomes ahome and is given a low interest rate and possible
problem is that many times the banks or servicorsprincipal production meanwhile the bank has a paying
don't have the slightest clue where the originalloan back on their books.
mortgage and note are.It is estimated that 85% of all loans originated during
Another legal tactic to stop up the foreclosure processthe mortgage boom years of 2000-2006 were written
is to go to court and demand that the lender validatesand funded so fast that many lenders made fatal
that the debt is legal by asking them to produce themistakes in their documents. Bottom line is if you are
original note that was signed at closing. Many times, thefacing foreclosure or having difficulty paying your
banks don't even have the note as they have beenmortgage insist on mortgage forensic investigation.
sold and transferred so many times. According to aThese forensic investigations may just help you keep
ruling by federal judge Christopher Boyko of the U.S.your home and get terms you can afford.