Monday 30 September 2013

Get A Proper Securitization Audit Done

By Paulette Short


Quite simply, what the industry calls an expert securitization audit, basically just refers to legal documents which serve to help any consumer or borrower, whether it is business entities or private individuals, to review the accuracy of the paper trail of their title deed or more specifically the mortgage loan. These potent legal documents have particularly proven to be very effective in aiding those people faced with foreclosure notices or proceedings. Moreover, these legal audits' results can also be submitted into court as legal and allowable evidence in a person's defense.

Normally, any person that suspects that their foreclosure is negligent or wrongly implemented by their mortgage loan trustee, can hire professional to carry out this specialized review of their loan. However, it must be stressed that these audits are only allowed to be admitted into a court proceeding if they were carried out by an expert auditor. Any mortgage auditors needs to obtain a certification as a forensic loan auditor before being permitted to conduct mortgage audits.

But in truth, the only person one should use to ensure that the documentation can be submitted into a court hearing, is an auditor that has several years experience in the industry. When done correctly, this document becomes a powerful tool, that may change the entire validity of one's foreclosure. There are three main areas related to loans where these documents are used and being more familiar with them, could not hurt.

Firstly, clients looking to have their principal loan modified or reduced can request that audits be done. Secondly, many client will request it for foreclosure dismissals; and last but not least in cases where clients are looking to have their foreclosures overturned. In all of these cases these findings prove to be invaluable in helping a judge make an informed decision.

But to understand the auditing process, one needs to understand what securitized home loans actually are. Basically, hundreds or thousands of different mortgages are bundled into a basic "security". These security bundles are sold to Wall Street markets. Doing this, removes the financial institutions capital risks; while lenders cash funds the markets.

This "reuse" of funds is not illegal. However, when the loans are not processed in accordance to strict regulations, then it can be considered to be fraud. Thus, companies found with incomplete or missing documents may be faced with huge fines and will look to settle out of court, by offering various loan reductions or halting of foreclosure procedures.

Consumers need to realize that a mere mortgage audit will not have the same results. These smaller audits merely check for discrepancies within the RESPA and TILA regulations. What one will achieve is the reimbursement of several thousand dollars, but will in now way be able to stop any foreclosure procedures instituted.

So, for any person who is faced with loosing their home or business property, it is would be prudent to rather choose to have a securitization audit carried out. Finding out if ones mortgage is unsecured, can be done free of charge. The only rule is to use firms with at least 20 years experience to ensure that the process is done correctly.




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