Archive for July 14, 2012

Why You Should Get a Mortgage Audit

Written by admin on July 14, 2012. Posted in Foreclosure rescue, Loan modification, Mortgage audit

These days many people are finding it hard to meet their monthly mortgage payments. One little known way to get your mortgage payments lowered or even to get a refund from your lender is through a mortgage audit. If a home owner asks for a mortgage audit they can get the bank to bring down their mortgage payments. If the home is in danger of being foreclosed, you can at least delay the process by asking for a mortgage audit. This may give you time to get the money you need to catch up on your payments.

When a mortgage audit is done, the loan is checked to see if it is in compliance with RESPA, TILA, APR, HOEPA and other federal and state banking regulations. Lenders usually don’t like these audits done because more times than not, errors are found. Even a $35 dollar error can help delay a foreclosure because of the Truth in Lending laws. Homeowners are also entitled to refunds when errors are found during a mortgage audit.

Auditors have found that about 45% of home owners are due a refund of more than $1500. Some 23% are owed up to $10,000 and 11% are owed over $10,000. In fact, it is estimated that 70% of existing escrows are in violation of federal law because they are retaining excessive balances. All of these facts means that it is to the homeowner’s best interest to ask for a mortgage audit to make sure their mortgages are in compliance with federal and state laws.

Banks and lenders don’t like it when a mortgage audit is asked for. They will usually offer to bring down your mortgage payments if you ask for a mortgage audit. If you are in danger of your home going into foreclosure you may be able to save it by asking for a mortgage audit. A mortgage auditor can check your loan documents and find any errors for you. With expert knowledge of the legal guidelines on loan contracts, they can spot errors. People who have a mortgage audit done are often successful in avoiding foreclosure and able to keep their homes. If your home loan has be transferred to another lender it is definitely worth the time and money to ask for a mortgage audit. New lenders have not always been up on the current laws regarding home mortgages.