How to Find Out If You Are a Victim of Predatory Lending? Do Your Own Audit? Share this:TwitterFacebookLike this:Like Loading... 8 Comments Mr. Ahmad, Surely you don’t think this info. re doing your audit is anything close to a professional compliance audit? We have been auditing mortgage loan documents going on 6 years and drafting court docs./complaints for attys. We investigate hundreds of consumer protection provisions. Bests, Linda J. Rougeux Advocates for Justice It is for sure I have my biases but the standards are lacking, and I don’t mean any disrespect to what you do. I got some sample and some original so called forensic reports which were dearly paid by homeowners. Now, who is going to sue for these violations? In order for any meritorious claims, these violations has to be tangible and warrants legal action? Otherwise, they are junk piece of computerized data. Truthfully, I had yet to see a good valid report on which I can fairly base my claims. Again, no disrepect meant to anything here. Malik, We are pioneers in consumer mortgage loan compliance auditing. We found over the years that most, if not all, audits that we have scrutinized, until quite recently, are indeed not only lacking, and lacking severely and plainly inaccurate. Agreeing, the consumer’s plight to find a qualified auditor is real. In the last couple weeks, an audit was submitted to us for our review from a Michigan atty. The audit report appears to be more legitimate than others. Yet still lacking as to whether all the superfluous info. provided would be applicable in all situations. No disclaimers were found in the audit as to the non-universal applicability of the case law provided to support their findings. I find this practice to be disturbing and possibly misleading. Whereas, the insertion of certain case law can provide guidance, it may well be just as misleading. Most consumers are not aware of how precedent works. This is likely known to the auditors or certainly would be good to know in order to attempt to properly guide an consumer/homeowner through the muddle. Seems the quality of a few auditors is improving. Attorneys are becoming auditors. We train auditors. Yet by far, from what we have seen, there are more scammers than professionals. Consumers would be best warned and advised. Get a referral. Still taking a little bit of issue with you regarding labeling your information…do your own audit… Your intent may be to be helpful and protect consumers, however, the fact that the market is riveted with audit-posers does not negate that fact the information you provide regarding “doing your own audit” is also lacking as to actually being able to wade through the stacks of documents and applying the relative consumer protection federal and/or state statutes. I see your disclaimer stating that the guidance provided is not meant to make one an expert. If you want an expert, contact us. We are not the new kids on the block and have studied the area of consumer mortgage defense since 2003. I have a background in mortgage industry, real estate and law. We are not entreprenuers, we are professional consumer mortgage loan auditors and litigation support service providers. Notwithstanding, whether a violation is viable or not can be arguable. Not in all cases will a violation be found to lie by a court of law. See ALR, What Constitutes as a Truth In Lending Violation. As you will likely agree, there is an obvious difference between determining if you “might be a victim of predatory lending” and ‘doing your own audit,’ especially becoming competent to provide a report that will pass judicial scrutiny. We have several attys., in various states, who utilize our services to provide audits for their clients. All our clients are via referrals. We do not advertise to the general population. Not all auditors are incompetent, yet it is a challenge to dicipher who they are..kind of like selecting an atty. We also draft complaints and all other required court docs. to the distressed homeowner’s attorney nationwide via our associated attorneys. We have clinical experience and are doers not just authors. Agreeing with you somewhat: It is fair to say, if not required, to inform a prospective audit-seeker that an audit needs wheels; 1) someone/legal counsel typically to negotiate a loan mod or litigate 2) relative funds for the mentioned services. We found best practice to be to thoroughly interview and educate each consumer/homeowner about specific total costs (audit,attorney fees, loan mod. fees, BK and other filing fees, court costs, etc.) and to understand exactly the limitations of obtaining an audit alone to defend against foreclosure. So there.. good news. Basically we agree. Consumers need to be aware of the unscrupulous and those who do are not consumer advocates who can properly inform distressed homeowners of the risks involved. Thank you for your response. Respectfully Submitted, Linda J. Rougeux President ADVOCATES FOR JUSTICE Dear Linda: I had seen your comments, but could not reply you because of a recent change of my office. I agree with you mostly and did not mean to belittle your profession in any possible way. However, my experience, and truthfully, I see about 50 to 75 people in my office every week, and even on the weekend, is dismal. Most of the audit reports I had seen, are just glamorized computerized data with different color of fonts with such fancy heading, Did pass the Test, Did not Pass the Test, and some illusory reference to both TILA and RESPA provisions. Let me say frankly here. Attorneys are under a dire pressure to file only meritorious claims (See Rule 11 of Civil Procedure Code) and are under penalty, if they file non meritorious cases. Contrary to what the public thinks, filing a lawsuit is difficult and requires stringent tests by attorneys, and of course a relevant support by evidentiary facts and issues. Here, most of the TILA and RESPA laws have very short statutory limitations period, and regardless of the auditor report, nothing can stop this period. Of course, it can be extended in certain cases. As you may know, lately courts are bombarded with litigation. In just one case, Mr. Fern in Nevada (he is under trial) filed some 1000 cases. The whole judicial system was choked because of this. Again, you may have seen what California Bar Association had just issued directive to attorneys in California. There is a hefy fee paid by clients in getting this loan audited. Beleive me clients come to my office, place this loan audit report on my desk, and ask me how soon can I file their case. “I would not, now and not in the future, is invariably my reply. I do not consider myself as top notch professional. I have truthfully not much sympathy with the client who has not paid his lender for the last 12-16 months, and is finding ways to sabotage his own obligations. How come he is behind so many months? There are always differents reasons of hardship–none of them justifiable. Of course, this is a legal contract and one has to follow it. Lenders may have done mistakes, but until then you are still obligated to continue your duties in this two-way contract. Believe me, I had not seen a single report on which I can put my money (of course in a contingent case, it is attorney’s money) in filing this case. Client just don’t want to pay, and in their opinion, this auditor report is all they can contribute. Cheers!!! Malik My husband and I have fought for just over 2 years to Modify our home loan to NO avail. We’ve contacted Wells Fargo and Whileshire, we’ve filled out 5 sets of paper work at their request and each time, they need something more! 2 years of back and forth, paperwork, phone calls and letters and yet NOTHING has helped. We’re still in our home that is under water 60% in value, yet they won’t help. They’ll NEVER get the original price for this home, from us or anybody else. I can’t understand why they just don’t simply RE-WRITE the loan at todays value at a much lower fixed rate and move on to the next homeowner????? They’d be better off at the banks, some money would be coming into them and homeowners wouldn’t be left out in the cold. It’s costing them more to Foreclose and try to resale!!!! The houses are left torn up and needing major repair in most cases. We’ve asked for the “ORIGINAL LOAN” and Wells Fargo can’t come up with it in our case yet we still may lose our home. These banks have been paid with Tax payer (TARP) money and the insurance the banks had on all of these homes. Why are they still being allowed sue families and attempt to continue to collect on these homes that they’ve been paid on at least twice!!!!! Banks are getting richer off of these homes 2,3 and maybe even 4 times!!!! We’ll keep fighting as long as possible to keep our home but time is running out for us and Christmas is around the corner. We can’t get Wells Fargo or Whileshire to talk to us. Sell us our home for $376,000.00 at 6% for 30 years, forgive us the difference and let us try to rebuild our credit. Sincerely, Jennie Morgan Las Vegas Nevada I have heard this story before also. Let me know what is the precise reasons of this rejection. Did you fill out your financial information correctly? Do you have a little positive cash flow? Did you answer all the questions? Again, if you are suffering through the over expectation of this assistance, please reduce your expectation. This programs no where says that it will reduce your principal balance and match it according to the existing market value. This is simply very unreaslistic, and there is no cure for that. There is simply not enough money under the Obama plan to match all the reduction in principals throughout USA. It would require trillions of dollars. We suggest use of attorney for this purpose. You can cure yourself for a minor headache, or tooth ache by going to Walgreen and buying over the counter drugs, but when it is malignant, then you must see a professional and of course a prescription drugs. Too much valuable time is lost by homeowners in either going to unrecognized people or doing haphazardly themselves. Still, if you need any guidelines, please contact our office. Are loan audits useful on a older mortgage (2003), though? Are RESPA and TILA violations of any use to a homeowner undergoing foreclosure? By nature, I am not a big fan of audit, loan forensics and similar things. First, most of them just generic data production. Secondly, even if they find anything, that report is not admissible in a court of law as they cannot identify any breach of law. Still an expert has to be called and verified. That alone would be an expensive process. Also, most of the foreclosure laws like RESPA, TILA, have limited statutory laws and anything done or completed in 2003 would already have exceeded the statutory limitations and periods. Leave a Reply to JENNIE MORGAN Cancel reply Enter your comment here... Fill in your details below or click an icon to log in: Email (required) (Address never made public) Name (required) Website You are commenting using your WordPress.com account. ( Log Out / Change ) You are commenting using your Google account. ( Log Out / Change ) You are commenting using your Twitter account. ( Log Out / Change ) You are commenting using your Facebook account. ( Log Out / Change ) Cancel Connecting to %s Notify me of new comments via email. 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