What Is A Mortgage Audit?

By: Christina Wells

A Mortgage Audit is a broad review and examination of all documentation related to an existing real estate loan.

The loan audit also determines if the mortgage is in compliance with RESPA, TILA, APR, HOEPA and other federal or state banking rules.

Overcharges on rate adjustments range from $700 to $38,000 or more. You may have been overcharged if your lender selected the wrong index value, looked it up on the date or in the wrong publication, applied the margin incorrectly, rounded the figures incorrectly or improperly credited extra principal payments.

You should be especially concerned if your original lender sold the loan or is now out of business, if the loan has a rider/addendum or if the balance just seems too high.

The most common violation during the pre-closing and settlement process is the understatement of prepaid finance charges and in many instances a mere $35 error within the Truth in Lending disclosure statement could entitle the borrower to a refund of all finance charges, closing costs and interest payments made since the inception of the loan.

In most cases there have been violations and or a mistake and for that reason a lender does not want a lawsuit thrown at them, they will frequently offer a new rate that beats anything you could have attained to begin with!

!b>Here Are 4 Common Facts About A Mortgage Audit:

  • 45% of homeowners are due a refund that exceeds $1,500

  • 23% of refunds owed range from $3,500 up to more than $10,000

  • 11% of home owners are owed a refund of over $10,000

  • 70% of existing escrow accounts violate federal law by retaining excessive balances

How Does That Help You?

It may seem from the facts we listed above that the only benefit is that you may be owed a large amount of money from your bank but really, this means a way more.

If a violation or inaccuracy is spotted even as small as a $35 error within the Truth in Lending disclosure statement you can prevent a foreclosure, delaying the progress for months giving you a chance to obtain the money or to bounce back and afford your payments. The biggest advantage is the bank will propose an offer dropping your mortgage payments by enough that you can save your home.

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To Learn More About A Mortgage Audit To Lower Your Monthly Mortgage Payments, Visit Mortgage Audit Company Today! 1-888-266-7680

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