"If you are one of millions of Americans with a troubled mortgage, a newly developed tool called a forensic (loan) audit may stall foreclosure or help you persuade your lender to modify your loan."

"A forensic audit analyzes the computations and representations made in your original loan documentation, whether from a refinance transaction or from when you originally purchased your home. Some loan transactions and documents contain errors such as miscalculating the annual percentage rate (APR) in the truth in lending statement or a lender's failure to provide borrowers with required disclosures. These potential mistakes may have violated various federal and state laws and could be used by borrowers to demand changes in mortgages, such as reductions in the principal balance, interest rate modifications and waiver of past due payments."

"Errors revealed by forensic (loan) audits may also serve as a defense against home foreclosure. Costs vary but the information revealed may help homeowners attempting to keep their homes. A real estate attorney should conduct a forensic audit to determine if mortgage documents violate any state or federal laws."

- excerpt from Saturday's PB Post (03-14-2009)