My Real Estate Blog

Weekly Fraud Alert: Forensic Loan Audits

A new type of foreclosure-rescue scam has come to light in recent months – Forensic Loan Audits.  In exchange for an upfront fee of several hundred dollars, so-called forensic loan auditors, mortgage loan auditors, or foreclosure-prevention auditors backed by forensic attorneys offer to review a troubled homeowner’s mortgage loan documents to determine whether their lender complied with state and federal mortgage lending laws. The “auditors” claim the homeowner can use the audit report to avoid foreclosure, accelerate the loan modification process, reduce their loan principal, or even cancel the home loan.

Reprinted From C.A.R.