HOW TO CHOOSE AN AUDITOR, LOSS MITIGATOR, SHORT ALE "SPECIALIST", LOAN MODIFICATION "EXPERT" — CHEAP IS DEAR, YOU GET WHAT YOU PAY FOR

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The answer to your question is YES we have lawyers and the list grows every week. You can start with the “Lawyers Who Get it” at www.livinglies.wordpress.com. If you still have trouble then contact us again. In the meanwhile, allow me to point out that the process of defending your property is intimidating to many people. That is because the lenders’ lobbyists made it that way. The blog site and my seminars and workbooks untangle the apparent chaos and give the homeowner or the homeowner’s attorney the steps to prepare their case before going to a lawyer, if they don’t have some emergency because they waited too long to defend themselves. There are still steps they can take if they waited too long but they come in a different order.

BEFORE HIRING AN ATTORNEY: Here are the basic steps that must be taken in order to effectively present a credible threat to your lender AND A CREDIBLE ORGANIZED PACKAGE TO A PROSPECTIVE LAWYER THAT MIGHT TAKE YOUR CASE. The goal is a substantial modification of the loan in which the principal and payments are reduced or eliminated. I have distilled the methods of everyone from the people who the very narrow “audit” comparing the Good Faith Estimate to the Settlement Statement, all the way through those who perform full forensic analysis. Since the cost can vary as much as between $200 to $20,000 and each company or person offering “audit,” “loan modification”, “loss mitigation”, performs a different set of services, I have created Garfield’s Continuum (1-2 day workshops for Lawyers and 1/2 day workshops for homeowners, and workbooks for each). The Continuum deals with legal strategies, theories and fact finding. Based upon what works and what doesn’t I have come up with the minimum menu of services that MUST be included if you are aiming to get a substantial modification and not one that merely extends your loan to 40 years and adds on your back payments to the principal due on the note.

ANY PERSON OR ENTITY THAT DOES NOT OFFER THESE SERVICES IS AT BEST “SCALING DOWN” JUST GET MONEY FROM YOU FOR UNDETERMINED RESULT OF QUESTIONABLE VALUE. THE COST OF THE BASIC  SERVICES SHOULD RANGE FROM $1500-$2500. EXTENDED SERVICES ARE BY AGREEMENT.

1. Documents to be examined:
   1. Promotional literature, correspondence and borrowers notes from initial contact with mortgage broker of “lender.”
   2. Any document purporting to give the terms of a proposed loan including but not limited to Good Faith Estimate
   3. The Good Faith Estimate and documents supporting affordability and benefits
   4. The settlement statement
   5. The name and contact information and appraisal report including the actual person and license number of the appraiser, the amount of the previous sale, any prior appraisals available to borrower, and the borrower’s estimate of current value decreased by 12% for broker’s fees (6%) and current average discount from asking price (6%).
   6. The name and address of the mortgage broker, and the specific person the borrower dealt with, whether the mortgage broker is still in business.
   7. Identification of the loan originator
   8. Determination if FNMA or Freddie MAC were actually involved or if the standard forms were used from those or any other (HUD) GSE.  (Government Sponsored Entity)
   9. Identification of title agent with name and address
      
   10. Identification of title insurance company with name and address
   11. Identification of the escrow agent with name and address
   12. Identification of the closing agent with name and address
   13. Identification of the Trustee with name and address
   14. The set of closing documents given to the borrower: the ones provided before closing, the ones provided after closing and any documents that were transmitted appointing servicer or substitution of Trustee or assignment etc.
   15. SEC reports and annual reports of any of these entities or affiliates
   16. If available, Sampling investigation to determine if Pooling and Services Agreement, Assignment and Assumption Agreement, Insurance, Credit Default Swaps, Cross Collateralizing, Over-collateralizing, reserves, and bailouts from Federal Reserve or U.S. Treasury can be produced for examination.
   17. Documents, if available, showing authority of any party alleging rights to enforce, collect or perform modifications, issue notices of delinquency, default, sale or file foreclosure actions, unlawful detainer (eviction) actions etc.
       
2. Basic Required Services — For expediency and cost purposes, the initial “analysis is presumed to be using a “sampling technique” that identifies probably information that is applicable but does not guarantee accuracy or completeness)
   
   1. Retainer Agreement in Writing for analysis, collection etc., that allows for attorney tot ake over relationship on certain conditions.
   2. Written authroization form Borrower executed in triplicate and notarized (each copy)
      
   3. Analysis of disclosures and promotional literature to determine the nature of the deal the borrower thought he/she/they were getting and comparison with the actual result.
   4. Analysis of GFE etc. and comparison with actual deal, disclosures of third party funding, table funding, surprise fees, undisclosed fees, undisclosed parties, etc.
   5. Analysis of settlement statement to determine the representation of the parties at closing to the borrower and comparison with actual deal.
   6. Appraisal Sampling analysis to determine negnligence or fraud based upon comparables of time, geography and whether developer asking prices were used to inflate the appraisal. Calculation of potential claim for inflated appraisal. Determination of the expected life of the loan based upon adjustments, expected market conditions etc. Calculation of probable effect on APR over the expected life of the loan.
   7. Analysis of whether the closing conformed to GSE guidelines as industry standards
      
   8. Analysis of conduct of the mortgage broker to determine potential claim for negligence or fraud
   9. Analysis of conduct of the title agent to determine potential claim for cloud on title, negligence or fraud
   10. Analysis of conduct of the title insurance company to determine potential claim for cloud on title, negligence or fraud
   11. Analysis of conduct of the escrow agent to determine potential claim for negligence or fraud
   12. Analysis of conduct of the closing agent to determine potential claim for negligence or fraud
   13. Analysis of results of investigation for compliance with TILA, RESPA, HOEPA, RICO, Deceptive Business, Deceptive Lending, usury etc.
       
   14. Analysis of conduct of the Trustee or successor Trustee on Deed of Trust, if applicable to determine potential claim for negligence or fraud
   15. Sampling analysis to identify potential successor trustees (Pool, SIV, SPV etc.)
   16. Sampling analysis to determine where the borrowers payments have been sent and how they have been applied, if available.
   17. Sampling analysis to determine if the the named entity as Payee on the Promissory note has been paid in full by a third party — and preliminary abalysis as to whether the note became non-negotiable, whether the borrower owes anyone any amount, and if so who that might be and how much it might be, if it is possible to make such determinations in the preliminary investigations.
       
   18. Issuance of Preliminary Findings Report to be sent to servicer or whoever the borrower is sending payments to or otherwise in communication with.
   19. Challenge letter to each party seeking to enforce, whether lawyer or party, raising defensive positions concerning their authority to act.
   20. Extensive Qualified Written Request with suggestions for resolutions, coupled with Notice and contract for appointment of Borrower or Borrower’s designee as attorney in fact for reconveyance as per RESPA.
   21. Demand letter and notice if Lender fails to comply.
   22. Challenge letter if Lender denies claims or requires additional written authorization
       
   23. If available, counsel’s recommendation of next steps
3. Extended Services:
   1. Appointment of agent for reconveyance
   2. Recording reconveyance
   3. Recording other instruments in property records
      
   4. Expert Affidavit
   5. Expert testimony
   6. Exhibits prepared for court
   7. Form complaints, motions and affidavits
   8. Legal ghost Writing
   9. Consultation with Borrower’s attorney
   10. Appearances in Court
   11. Forensic Review
       1. Basic, non sampling
       2. Full audit including examination of servicer’s ledgers etc.

Tags: audit, borrower, Chapter 13, disclosure, Eviction, Federal reserve, foreclosure defense, foreclosure offense, fraud, inflation, lawyers, lender, Lender Liability, lost note, Mortgage, quiet title, rescission, RESPA, RICO, securitization, TILA audit, trustee
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