Better Business Bureau serving New Jersey advises consumers to be cautious about pitches for forensic mortgage loan audits to avoid foreclosure.
According to Melissa Companick, BBB President and CEO, in the last 18 months several companies offering this service have popped up for short periods of time before shutting down. What they all have in common is asking for an upfront fee to review your mortgage loan documents to determine if your lender complied with state and federal mortgage laws.
“The ‘auditors’ say you can use the audit report to avoid foreclosure, accelerate the loan modification process, reduce your loan principal or even cancel your loan,” Companick said.
However, there is no evidence that forensic loan audits help consumers obtain a loan modification or any other foreclosure relief. According to the Federal Trade Commission, a partner of BBB, some federal laws allow consumers to sue lenders based on errors in loan documents. However, the lender is not required to modify loans simply to make payments more affordable.
What’s the worst that can happen? “If you cancel your loan, you will have to return the borrowed money, which may result in you losing your home,” Companick said.
If you are faced with foreclosure or are having trouble paying your mortgage, BBB recommends contacting your lender immediately to see if a new repayment schedule can be negotiated.
Start With Trust. For more consumer tips and information, visit newjersey.bbb.org or phone 609 588-0808.
To read the FTC article on Forensic Loan Audits, please visit: