Over a period of five years or more, primarily during the real estate boom years of 2002-2007 over 2 million mortgage loans were funded. During that period, when real estate prices were going up at an unparalleled pace, there was so much competition among lenders to make high profit loans, that underwriting guidelines became practically non-existent. Lenders in their exuberance, greedily made loans to just about any borrower who could sign their name. Not wanting to be saddled with too much debt, the lender bundled and sold off the riskier mortgages before the ink dried.

Your loan may be unlawful, and you may be entitled to substantial damages whether or not you are currently in foreclosure. A forensic loan audit looks for violations of federal, state and predatory lending practices. Approximately 85% of forensic loan audits to date have uncovered violations in the TILA (Truth in Lending Act), Good Faith Estimate, RESPA (Real Estate Settlement Procedures Act), and in the Predatory Lending and Real Estate/Mortgage Fraud regulations.

What exactly is a forensic loan audit? A forensic loan audit is the comprehensive review of all documentation, legal paperwork, transaction data, and other evidence pertaining to a real estate loan that has already been funded. A Forensic Loan Audit identifies any illegalities performed by the lender, their broker, or other parties in conjunction with the loan. During the audit process, a professional should review your loan to ensure that it meets all legal requirements that were in effect at the time the loan was funded.

Why is this important? Loans must be legal to remain enforceable by the lender. Loan violations are serious offenses of Federal Consumer Protection Law and lenders may face huge fines and serious legal consequences for breaking these laws. Financial institutions are typically run by rational business people. Lenders understand the financial ramifications of their mistakes and usually want to avoid expensive litigation or the risk of being charged with large fines. When the audit team commences the negotiating process, the onus begins to shift and the lenders can often be persuaded to mend situations more easily with homeowners.

How does the average home owner benefit? Violations are like bullets being loaded into a gun, used by the audit team to argue your case with the lender. As a rule, the more violations, and the more severe those violations are, the better your chances of obtaining a favorable settlement is going to be. This settlement may include punitive damages, attorney fees, lower monthly payments, a principal reduction, a delay or prevention of a foreclosure sale and more.

What happens if there are violations in my loan? If a loan audit determines that you may have been a victim of deceptive lending practices or any other type of mortgage compliance issue, you may have the leverage necessary to negotiate with your lender. Many borrowers attempt to negotiate with the lender directly. In the early stages of loan modifications, many borrowers who did make deals without proper representation ended up back in the foreclosure process a few months later. Unless you have the time, knowledge and negotiating skills, you should hire an attorney to negotiate on your behalf. Otherwise your lender will either assume you are not serious in your intentions or grant you low priority consideration. Either way you are probably not going to achieve favorable results.

Violations of the Truth In Lending Act carry severe penalties. Most of the recent prosecutions have centered around this document which in recent years was not properly disclosed and/or presented in the loan package. A creditor who violates the disclosure requirements may be sued for twice the amount of the total finance charge on the loan. In the case of a home mortgage, this can be a very significant amount. Costs and attorneys fees may also be awarded to the borrower. This is just one of the many documents the forensic audit team will scrutinize.

Your home and your familys welfare are too important to leave to chance. A forensic loan audit may uncover certain irregularities which in turn will give your legal negotiators the ammunition they need to work out a favorable loan modification program for you. At the end of this process; homeowners who have been the victims of predatory lenders, can rectify a great deal of the damage done to them. Including, resetting the terms of the loan to a lower interest rate, eliminating any back due amounts, restoring their credit history and saving their home.

For somebody who has bad credit, you may find it a very discouraging task to get a loan from any lending institution. It is indeed very unfortunate when your finances are at its worse and you cannot get anyone to help you because you are considered as a high-risk borrower.

It is rather frustrating getting turned down by every creditor because of your low credit score and your perceived inability to satisfy your financial obligations in a timely manner, or at all.

Securing bad credit loans may prove to be hard, but absolutely not impossible. There are certain credit institutions willing to loan money to people with bad credit notwithstanding the risk of non-payment involved.

These companies are in the business of giving people a second chance and the help that they are in need of very much. They make money by making loans. It is important to remember that.

Bad credit lenders may or may not require collateral in exchange for the loan they will release to you, but you should expect the rates to be significantly higher than those of normal loans. The terms and conditions should also be expected to be strict.

In taking out bad credit loans, it is very important that you have a purpose for the proceeds. After all, you are borrowing money because you are financially troubled and you need all the help you can get. So when you do get the help you need, make sure that the loan will be able to address your major financial concerns.

Before even applying for a loan, you must map out a plan detailing how you will liquidate the loan proceeds. Make a list of the most important things that needs to be done such as paying off outstanding and past due debts. The loan may also be a start up capital for your own business in order to gain extra income and be able to finally keep up with your expenses.

Whatever you decide to, make sure that you turn things around for your financial well-being. Taking out bad credit loans can turn out to be your lifesaver or just another nail in coffin called bankruptcy.