Forensic Loan Review Firms Begin To Pop Up Offering To Find Errors In Loan Docs For Homeowners Fighting Foreclosure

A syndicated column in the Los Angeles Times reports:

• Homeowners who are having difficulty getting the attention of their lenders to discuss their troubled mortgages might want to obtain a forensic loan review to determine if their lenders made any mistakes when the mortgage was issued.

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• In a forensic loan review, a legal pathologist scours your loan documents looking for errors in, among other things, the truth-in-lending statement the lender provided shortly after you applied for your mortgage and the lender's annual percentage rate calculation so you could compare loan costs. If the truth-in-lending statement doesn't match the HUD-1 closing-cost sheet you received at closing, if the APR is off by just a hair, you might have cause for legal action against the lender.

For more, see Errors in loan documents can save strapped homeowners (Even small mistakes in the paperwork may give borrowers the legal leverage to persuade lenders to rework their mortgages).

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For a recent story of a foreclosure mitigation company which offers to audit and find errors in loan documents and promises homeowners help in fighting foreclosures, and which is now being sued by the Florida attorney general for alleged deceptive practices and the unauthorized practice of law, see:

• Lauderdale firm didn't deliver mortgage relief, state suit alleges (Lauderdale company denies wrongdoing and says it was let down by law firms it trusted to help individuals),
• Broward Foreclosure Debt Mitigation Company Sued for Deceptive Practices.

Go here and go here for other posts on issues relating to attorneys, loan modifications, and the unlicensed/unauthorized practice of law. UnauthPractOfLawKappa UndoMortgageLoans TILAdelta