Forensic Audit Service Speeds Home Mortgage Loan Modification & Short Sale Process in NW Florida
Breakthroughs Media
June 17, 2010
www.forensicauditorsofnwfl.com
By Peter Stoddard, Real Estate Broker & Forensic Audit Expert
It´s no secret that Americans, Floridians in particular, face significant challenges when they attempt home loan modification. Almost half (48%) of all Floridians with a mortgage owe more than their home is worth. Twenty-five percent are in foreclosure or are over 60 days late in payments and in default.
Banks are lending money only in trickles. Many homeowners, even those current in payments, find that lender staff are either overburdened or disinterested – or both – but certainly unresponsive. Borrowers with interest only or adjustable rate mortgages getting ready to "reset" feel like passengers on the Titanic, with no lifeboat in sight.
Sellers attempting a short sale face their own challenges. This is where the home will sell for less than the mortgage balance due, and the listing real estate agent negotiates purchase offers directly with the lender – who theoretically will forgive the seller a portion of the amount due. Short sales can drag out for months (see unresponsive lender staff above). Buyers often lose patience, withdraw their offer, and move on to purchase from a more motivated seller.
Homeowners do have options, however, and they can arm themselves with leverage to speed "The Bank" to the negotiating table. To do so requires some simple preparation.
Here are 5 questions homeowners should ask before they contact their lender to attempt loan modification or a short sale:
1) Q: What will happen if I simply call a loan officer and ask to refinance.
A: Simply put, you´ll need to beg & plead – and prepare for a long wait. Your application will begin at the bottom of a very tall stack of files.
2) Q: What can I do to speed the process?
A: Prepare to "go on offense" with the lender by performing a Forensic Mortgage Audit. If you purchased your home or refinanced from roughly 2000 to 2008 – during the real estate "boom" years – there is a very good chance (better than 80%) your lender took a number of regulatory shortcuts, from not providing required documents, to committing escrow errors, to predatory lending practices. An audit will analyze original loan documents, reveal all lender violations and cite case law to inform the lender of possible consequences.
3) Q: What will the audit do for me?
A: First, it will demonstrate that you are motivated and prepared. Second, it will get you out of the "bottom of the pile". Third, it will likely escalate your case to someone with a higher level of authority than the typical loan officer. However you present the audit, the lender will not wish to litigate over loan violations. Lastly, the audit will give you leverage to negotiate a loan modification or short sale more rapidly and to your best financial advantage – not the lender´s.
4) Q: How do I present the audit?
A: You can choose present it to the lender personally. If you do (A) demand to work with an executive higher than a loan officer, and (B) make clear that you intend to hold the lender accountable for violations cited in the audit.
If you are attempting a short sale, the listing real estate agent can present the audit – and should follow (A) and (B) above.
The most effective means to expedite the negotiation is to have a lawyer present the audit. They will submit a "demand letter" directly to the legal department (who will inherently have more authority than the loan dept.). Use of an attorney will demonstrate clearly that you are not "bluffing".
5) Q: What should I expect as an outcome?
A: That will vary depending on a number of factors. Every mortgage is unique, and results will hinge on both the severity of lender violations and how aggressively you "prosecute" your case.
In the case of a short sale, you can expect the lender to respond more quickly – perhaps cutting the wait time in half. Time is money, and an anxious buyer will be less likely to withdraw their offer.
In cases where the lender committed the most severe violation, predatory lending, the best possible outcome is a principal reduction, whereby a new loan is drafted from scratch based on the home´s current appraised value.
Until recently negotiating with a mortgage lender has been a painstaking, arduous task at best. "The Bank" apparently held all the control, while the homeowner had very little. By performing a Forensic Audit you can gain vital leverage to motivate the lender to respond quickly – and restore financial health to your household.
For more information or to find the right consultant for your mortgage issues, please contact Peter Stoddard at fanwfl@gmail.com or visit: www.forensicauditorsofnwfl.com
By Peter Stoddard, Real Estate Broker & Forensic Audit Expert
It´s no secret that Americans, Floridians in particular, face significant challenges when they attempt home loan modification. Almost half (48%) of all Floridians with a mortgage owe more than their home is worth. Twenty-five percent are in foreclosure or are over 60 days late in payments and in default.
Banks are lending money only in trickles. Many homeowners, even those current in payments, find that lender staff are either overburdened or disinterested – or both – but certainly unresponsive. Borrowers with interest only or adjustable rate mortgages getting ready to "reset" feel like passengers on the Titanic, with no lifeboat in sight.
Sellers attempting a short sale face their own challenges. This is where the home will sell for less than the mortgage balance due, and the listing real estate agent negotiates purchase offers directly with the lender – who theoretically will forgive the seller a portion of the amount due. Short sales can drag out for months (see unresponsive lender staff above). Buyers often lose patience, withdraw their offer, and move on to purchase from a more motivated seller.
Homeowners do have options, however, and they can arm themselves with leverage to speed "The Bank" to the negotiating table. To do so requires some simple preparation.
Here are 5 questions homeowners should ask before they contact their lender to attempt loan modification or a short sale:
1) Q: What will happen if I simply call a loan officer and ask to refinance.
A: Simply put, you´ll need to beg & plead – and prepare for a long wait. Your application will begin at the bottom of a very tall stack of files.
2) Q: What can I do to speed the process?
A: Prepare to "go on offense" with the lender by performing a Forensic Mortgage Audit. If you purchased your home or refinanced from roughly 2000 to 2008 – during the real estate "boom" years – there is a very good chance (better than 80%) your lender took a number of regulatory shortcuts, from not providing required documents, to committing escrow errors, to predatory lending practices. An audit will analyze original loan documents, reveal all lender violations and cite case law to inform the lender of possible consequences.
3) Q: What will the audit do for me?
A: First, it will demonstrate that you are motivated and prepared. Second, it will get you out of the "bottom of the pile". Third, it will likely escalate your case to someone with a higher level of authority than the typical loan officer. However you present the audit, the lender will not wish to litigate over loan violations. Lastly, the audit will give you leverage to negotiate a loan modification or short sale more rapidly and to your best financial advantage – not the lender´s.
4) Q: How do I present the audit?
A: You can choose present it to the lender personally. If you do (A) demand to work with an executive higher than a loan officer, and (B) make clear that you intend to hold the lender accountable for violations cited in the audit.
If you are attempting a short sale, the listing real estate agent can present the audit – and should follow (A) and (B) above.
The most effective means to expedite the negotiation is to have a lawyer present the audit. They will submit a "demand letter" directly to the legal department (who will inherently have more authority than the loan dept.). Use of an attorney will demonstrate clearly that you are not "bluffing".
5) Q: What should I expect as an outcome?
A: That will vary depending on a number of factors. Every mortgage is unique, and results will hinge on both the severity of lender violations and how aggressively you "prosecute" your case.
In the case of a short sale, you can expect the lender to respond more quickly – perhaps cutting the wait time in half. Time is money, and an anxious buyer will be less likely to withdraw their offer.
In cases where the lender committed the most severe violation, predatory lending, the best possible outcome is a principal reduction, whereby a new loan is drafted from scratch based on the home´s current appraised value.
Until recently negotiating with a mortgage lender has been a painstaking, arduous task at best. "The Bank" apparently held all the control, while the homeowner had very little. By performing a Forensic Audit you can gain vital leverage to motivate the lender to respond quickly – and restore financial health to your household.
For more information or to find the right consultant for your mortgage issues, please contact Peter Stoddard at fanwfl@gmail.com or visit: www.forensicauditorsofnwfl.com
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