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FINANCIAL RELIEF SOLUTIONS (FRS)

MORTGAGE AUDITING / FORENSIC LOAN DOCUMENT REVIEW
LOSS MITIGATION & LENDER MEDIATION SERVICES
LOAN MODIFICATION & SHORT SALES PROCESSING

What Is A Forensic Mortgage / Loan Audit?

Many of the mortgages funded between 2002-2007 contained irregularities and many were unlawful. During that period, underwriting guidelines took a back seat as lenders in their greed made loans that under normal circumstances should never have been approved.

Your loan may be unlawful, and you may be entitled to substantial damages whether or not you are currently in foreclosure. A Forensic Loan Audit looks for violations of federal, state and predatory lending practices. Approximately 85% of forensic loan audits to date have uncovered violations in the TILA (Truth in Lending Act), Good Faith Estimate, RESPA (Real Estate Settlement Procedures Act), and in the Predatory Lending and Real Estate/Mortgage Fraud regulations.

A Forensic Mortgage or Loan Audit can be very important in identifying if you are a victim of predatory lending and is an extremely useful tool in the request for a successful Loan Modification or Short Sale especially when you do not “qualify” under normal standards. A Forensic Loan Audit is made up of a thorough review of your most recent mortgage loan package. All documents are examined, particularly the Note, HUD (Closing Statement), GFE (Good Faith Estimate) and a wide assortment of other legal documents making up your loan package. The purpose of the audit is to identify any illegalities performed by the lender, their broker, or other parties to the loan. During the audit process, your loan is reviewed to make sure that it meets all legal steps in effect at the time the loan was funded.

Why is this audit so important? This simple and straightforward answer is, loans must be legal to remain enforceable by the lender. Loan violations are serious offenses of federal laws and lenders may face stiff fines and penalties for breaking the laws. For the most part, lenders and banks are firms run by reasonable business people. Begrudgingly, they understand the financial mess they were instrumental in creating, and want to avoid any possible large fines or being faced with expensive litigation.
How does this help you the home owner? Violations are the basis by which your case can be argued with lenders. Generally, the more violations, and the more severe those violations are, the better your chances are of obtaining a favorable Loan Modification or Short Sale, a delay or prevention of a foreclosure sale and more.


Our primary goal is to determine whether there were violations of federal law in your loan. So what happens if there are violations in my loan? If a loan audit determines that you may have been a victim of deceptive lending practices or any other type of mortgage compliance issue, you may have the leverage necessary to negotiate with your lender.
Many borrowers attempt to negotiate with the lender directly. In the early stages of loan modifications, many borrowers who did make deals without proper representation ended up back in the foreclosure process a few months later. Unless you have the time, knowledge and negotiating skills, you should hire a professional loss mitigation company such as Financial Relief Solutions to negotiate on your behalf. Otherwise your lender will either assume you are not serious in your intentions or grant you low priority consideration. Either way you are probably not going to achieve favorable results.

Many homeowners have been told that they do not qualify for a Loan Modification for a number of reasons including but not limited to: rental property, investment property, too much income, not enough income etc. Now with a Forensic Loan Audit you will have leverage and your lender is put on notice and will most certainly consider your modification request rather than expensive court litigation and fees.

Again, If violations are found, among other things then you may be eligible for complete relief from the predatory loan. What is a predatory loan or lending? Dishonest behavior by many lenders, bankers, brokers and their sales force has caused the recent collapse of the financial markets. Examples of loans that may be considered predatory include pay option arms, stated income loans, bait and switch loans, elder abuse and other similar type loans where unscrupulous mortgage lenders and/or banks took unfair advantage of the borrowers.

Your home and your family’s welfare are too important to leave to chance. A forensic loan audit may uncover certain irregularities which in turn will give us (Financial Relief Solutions) your negotiators the ammunition they need to work out a favorable loan modification program for you. Once we have the FACTS about your loan, Financial Relief Solutions will negotiate directly with your lender for an equitable, fair Loan Modification or Short Sale approval or you can refer the matter to your local attorney for prosecution if that’s what you desire and the situation warrants. If you elect to sue, any foreclosure proceedings are stopped immediately and the lender can do nothing until the suit is resolved.

Most suits are resolved in an “out of court” settlement and many loan modifications and short sales are negotiated right after the findings of the audit (that’s where we come in) saving You and the lender time and expense. The legal fees, expenses and possible litigation are a deterrent to many lenders to avoid the court process and grant you a fair Loan Modification or Short Sale Approval.

At the end of this process; homeowners who have been the victims of predatory lenders, can rectify a great deal of the damage done to them. Including, resetting the terms of the loan to a lower interest rate, eliminating any back due amounts, restoring their credit history and saving their home.

THE FORENSIC MORTGAGE DOCUMENT AUDIT PROCESS
• Complete client interview with all applicable parties.
• Complete loan document and disclosure audit by an underwriting, fraud and compliance mortgage professional (Our Examiner/Auditor).
• Truth in Lending Act (TILA) and Real Estate Settlement & Procedures Act (RESPA) evaluation.
• Reverse engineering of your loan terms and Annual Percentage Rate (APR) for possible TILA violations.
• Complete report with all violations and findings is yours after the audit.

CONSTRUCTIVE FRAUD
Material facts include the terms of the loan, whether there is a prepayment penalty, or any other information which a reasonable borrower would want to know before accepting the loan. Did the loan officer or lender fail to disclose any material facts to the borrower? Was the loan presented to you at closing materially different than what you had applied for?

FRAUD AND NEGLIGENT MISREPRESENTATION
Were any representations, statements, or comments, written or oral made by the loan officer, broker, notary or anyone else which contradicts the terms of the documents?

NEGLIGENT MISREPRESENTATION
When a mortgage professional makes errors which a reasonably diligent mortgage professional would not have made, he or she may have made a negligent misrepresentation.

BREACH OF CONTRACT
The note and its attachments are a contract. The lender must follow all the terms of the contract such as the way the interest is calculated, and the penalties it assesses. Were there any terms in the contract which the lender failed to follow?

LOAN AUDIT REPORT
• Results report of all factual findings of the forensic audit
• Any and all applicable federal law violations
• The real terms of your loan
• Outline of hidden fees and/or commission earned by your broker or lender
• A complete assessment so you can pursue possible legal claims against your lender

NOTE: If you have a pending auction or sale date we may be able stop your auction/sale. Call for information.

Call or email to schedule a time to discuss the specifics of your situation. If you elect to move forward with a forensic mortgage/loan audit, we will need your complete mortgage closing package sent overnight (or regular mail) to our address below or you may send the documents in PDF format to Audit@FinancialReliefSolutions.com.

If you do not have your mortgage closing documents or if all you have are unsigned documents then we can get them for you if you desire. ($50 fee) That is one of our services. The cost of the Forensic Loan Audit is $499. The cost of a Modification is $499. We recommend a Loan Audit combined with a Modification (Forensic Loan Modification) for the best results, even though you may order them separately. We offer a discount if ordered together for just $799.00. Payment made by check, money order or cashiers check must be made payable to Financial Relief Solutions and must be received before the audit is conducted or within 24 hours of us receiving your documents or agreement. You may also direct deposit to Financial Relief Solutions at any Bank of America branch. Call for acct info.

Best regards,

Eric D. Brown,
Senior Loss Mitigations Officer
Financial Relief Solutions
(877) 717-6759 Fax# (877) 376-9911
(602)387-4294 (602) 413-5174
2375 E Camelback Rd. Suite 500
Phoenix, Arizona 85016
http://www.FinancialReliefSolutions.com
Audit@financialreliefsolutions.com