The Forensic Audit Loan Modification Scam

This particular scam entices homeowners through newspaper advertisements, as well as radio and television spots. The hook is to get homeowners to believe that they can find errors, improper documentation, or outright illegal activity in the way the mortgage was originated or within the loan itself. Supposedly, with such information, the homeowner will have sufficient leverage to fight the lender in the home loan-modification process with the hope of receiving assistance in keeping their home. The provider of such a noble service simply charges an upfront fee. Tragically, the audits provide no benefit, as they have nothing to do with helping those facing foreclosure proceedings.

Even Legitimate Forensic Loan Audits Provide Little Help

On the attorney generals Web site, Jerry Brown stated: Forensic loan audits arehawked by loan-modification consultants trying to cash in on the desperation of homeowners facing foreclosurethere is no evidence or statistical data to support claims that forensic loan-audits even if performed by a licensed, legitimate and trained auditor, mortgage professional or lawyer will help homeowners obtain loan modifications or provide any other foreclosure relief.