Forensic Audits - Loan Mods

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Presentation on how distressed homeowners can use forensic audits to give them the necessary leverage against their banks to negotiate a successful loan modification or refinance. Forensic Audits are a long-term solution for homeowners who want to keep their home from foreclosure.

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Forensic Audits - Loan Mods

  1. 1. How to Corner your bank & get the loan modification you deserve<br />(And Save Your House from Foreclosure)<br />
  2. 2. Your Presenter: Philip Blackett<br />My Mission: To position YOU as the solution provider for your community and help at least 10,000 distressed homeowners nationwide keep their home from foreclosure<br />
  3. 3. Problems that homeowners have when trying to refinance<br />The bank is not taking you seriously or is unwilling to work with you<br />Your house is worth less than what you owe or what you thought it would appraise for<br />
  4. 4. What We Are Going To Cover…<br />What a Forensic Audit and Compliance Review really is<br />Where the banks screwed up and how YOU can capitalize on it<br />How you can have the “upper hand” on negotiating with your bank for that loan mod that you deserve<br />
  5. 5. How Did We Get Here??<br />
  6. 6.
  7. 7. Important Facts<br />12% of ALL mortgage payments are 90 days behind<br />5-6 million homeowners are late and face foreclosure<br />85% of ALL loans created from 2000-2008 “refinance boom” have errors or serious legal violations<br />Government programs are a JOKE!<br />People are upside down (negative equity)<br />99% of homeowners don’t know they have options<br />I Know THE SOLUTION! Want to know the Secret?<br />
  8. 8. What is a Forensic Audit?<br />A scientifically conducted loan audit<br />Performed by human beings (NOT computers)<br />Very factual<br />Mortgage docs are reviewed and compared to all relevant and applicable case laws<br />The fact that different laws apply to each audit/case is taken into account<br />Each state has different laws which are individually reviewed on a case by case basis<br />A document prepared in writing along with an analysis as a package with attached tax documents as needed<br />Include appraisals, which if needed, will be reviewed<br />
  9. 9. Who is a Candidate for a Forensic Audit?<br />Adjustable rate mortgages (ARMs)<br />Someone upside down on their loan (negative equity)<br />Someone facing financial struggle or hardship<br />Rental or investment property owners<br />Victims of predatory lending<br />Any loan created with stated income<br />Anyone in foreclosure or received default notice<br />No Income, No Job or Asset verification (NINJA)<br />Strategic defaults<br />Even someone with a perfect payment history!<br />This is a Long Term solution for homeowners nationwide<br />
  10. 10. Commonly Asked Questions<br />Does the client’s payment history come to play?<br />Could they simply be upside down on their loan?<br />Can this be done for me personally and my friends and family?<br />A HUGE Plus +++<br />Who do YOU know that may benefit from this??<br />
  11. 11. Compliance / Disclosure<br />RESPA – Real Estate Settlement & Procedures Act: protects consumers from errors like undisclosed yield spread<br />Mortgage lender does not reveal they are making any money on the back end of the loan<br />TILA – Truth In Lending Act: Protects consumers from such violations as changes in interest rates from inception of the loan until day of closing where borrowers are unaware of rate changes until at the closing table<br />Predatory Lending – MAJOR VIOLATION<br />
  12. 12. Compliance / Disclosure<br />Less serious violations – maybe they were not given the RESPA book that’s to be provided by the lender<br />Individuals being charged points for paying off old loans at the time of re-finance<br />HOEPA – Home Ownership and Equity Protection Act: Designed to protect consumers who end up with high interest rates, as well as issues related to non-affordability<br />For instance, if clients were put into a negative amortization of 1-2%, then all of a sudden the interest rate adjusts – THIS REAKS OF PREDATORY LENDING<br />Appraisals – From about 2000-2008 for appraisal verifications, there were appraisers that were going out that were “working” for the mortgage bankers and they would inflate values<br />125% LTV loans – Anyone remember those?<br />
  13. 13. Collateral - Appraisals<br />We review for weaknesses involving the appraisal report. Do you think obvious “INFLATING” took place to meet certain numbers to make transactions work?<br />We actually look at the comps from when the appraisal was done to create even more “LEVERAGE” for our clients. Out of every audit company in the U.S., less than 2% even consider this strategy<br />
  14. 14. Servicing Loans<br />If the escrow is messed up, which happens frequently, then it’s a RESPA violation which could end up in a “Principal Reduction”<br />We review the index and margin per note to determine if the ARM loan is correct<br />We examine escrow accounts and verify all statements and make it our business to find all the errors. You probably know someone with a messed up escrow, perhaps even you?<br />
  15. 15. Additional Facts<br />How many loans do you think have errors in them on a percentage basis? Fact: 80%<br />60%of all banks cannot provide the original note to prove they own the loan (blue inking) <br />
  16. 16. Documents to Submit<br />Authorization to Release<br />Lender’s closing instructions (if available)<br />HUD-1 Settlement Statement<br />Uniform Residential Loan Application (FNMA 1003)<br />Promissory note with all endorsements, modifications and attachments<br />Mortgage / Deed of Trust / Security instrument with all endorsements<br />Modifications, attachments, riders, addendums, etc.<br />Initial Truth In Lending disclosure<br />Final Truth In Lending disclosure<br />Section 32 disclosure (if applicable)<br />Good Faith Estimate<br />Mortgage Broker Fee Agreement<br />Rescission Notice / Notice to Cancel<br />Mortgage Insurance Certificate (if applicable)<br />Escrow / Impound Disclosure Statement<br />Escrow Waiver<br />
  17. 17. Other Docs that are also Helpful<br />All State Disclosures<br />Property Tax Bill (for cycle in which the loan was transacted)<br />Sales Contract with all Addendums (if applicable)<br />Hazard Insurance documents<br />FEMA Standard Flood Hazard Determination<br />2 Years of Tax Returns from when the loan was written<br />The MORE you submit to us, the BETTER our chances of finding errors for you to use as leverage to get your loan modification <br />
  18. 18. Or Simply…<br />COLLECT ALL LOAN DOCS AVAILABLE!<br />DO NOT EVEN READ THROUGH THEM<br />GET THEM IN MY HANDS WITH A CHECK!<br />RELAX & LET ME TAKE CARE OF THE REST(WHILE YOU ENJOY YOUR LIFE WITH YOUR LOVED ONES)<br />
  19. 19. Something to Smile About!<br />
  20. 20. Contact Me ASAP to Get Started<br />Philip Blackett(201) 683-1700blackett@winwinredevelopment.comwww.SaveMyHouses.com<br />www.EmpowerHomeowners.com<br />

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