I am not a fan of Forensic Audits. In late 2008 I went to a training seminar in South Florida by a recognized practicing attorney who was one of the first selling the service. At that time I already had a hundred or so modifications under my belt. The idea that submitting an application with a forensic audit somehow scares lenders into a modification is absolute nonsense. Anyone with a day’s experience at a major lender will tell you that. I am no lawyer, but can it be useful in court, of course. However, in reality most homeowners do not have the resources to hire a seasoned experienced litigation attorney.
I was fortunate enough to start from day one in this industry with a passionate caring attorney, who went to as many Foreclosure Defense seminars as I went to modification trainings. And after being in the business all this time our opinion of this industry is pretty simple.
- Set realistic expectations with clients.
- Do a complete analysis of client’s financial and legal circumstances.
- Understand that all investors do not have the same loss mitigation guidelines.
(You would not believe the amount of people that think they can get a 2% HAMP mod with an FHA loan!)
- You must understand how Bankruptcy can be used. (Most Bankruptcy Attorneys don’t have enough practical experience with Loss Mitigation to properly advise clients. And most attorneys practicing loss mitigation do not have enough bankruptcy experience to advise clients.)
- MARS should have made a certification or license as an LO mandatory.
- The idea that you negotiate a modification is also nonsense in most cases, unless you’re knee-deep in litigation. Almost always it is strictly a matter of putting together an application that is eligible and compliant with investor guidelines and making the servicer comply.