Client retains LAC to audit loan for a lawsuit. Borrower has had house foreclosed but has filed suit to stop eviction. Audit revealed violations that could refund approx $100,000 if borrower wanted to walk away from the home. Audit also revealed discrepancies to set aside the foreclosure and keep the home.
Client bought a home for $200,000. Property appreciated to $500,000. Borrower refinanced and pulled out $200,000 for a $400,000 loan. Loan was a Neg Am loan and accrued another $100,000 to loan making the total principal $500,000. Property value had fallen to $250,000. Audit revealed violations and auditor's findings found that the borrower could rescind the loan in bankruptcy and bring the principal back down to $200,000 giving the borrower $50,000 in equity and enabling the borrower to modify or refinance the loan.
Client has a property worth $4.9 million and owes $1.4 million. Lender will not modify loan because the property has equity. Audit revealed violations and a possible principal reduction of $300,000.
Client has an aggressive private lender loan that will not modify and will not stop the foreclosure. Audit revealed violations of HOEPA and lender cancelled the foreclosure based on the strength of the audit alone.
Client has no lates or has no difficulty paying mortgage. Client is looking to see if principal can be reduced. Audit reveals violations that can setoff all payments into the loan since the last refinance resulting in a de facto interest free loan.
Client has a 4 unit property in a beach community worth $1.3 million. Property is foreclosure and lender will not modify. Audit revealed that loan transaction was actually a refinance when previously thought it was a purchase loan. Violation of lending laws were found and possible principal reduction of $300,000 on first loan and $100,000 on the second. After reduction, first loan is eligible for HAMP modification.
Client cannot receive a modification because client has been told that they make too much money. Audit revealed violations to reduce principal, and that client is eligible for principal reduction regardless of income.