Mortgage Audit - Are you at the Edge of a Foreclosure? Read more: Mortgage Audit - Are you at the E

At the edge of a foreclosure, most homeowners will seek every possible way and every possible institution that can help them in keeping their homes. Buying a place you can call home is a gruesome process especially for those who are not financially fit to do so. For those who are capable of repaying a lending institution religiously according to their agreement terms, constantly being able to do so is also a struggle.

Some families who are affected by a financial problem will most likely default in paying of their loans. In the case of a mortgage loan, failure to do so may lead to eviction or complete foreclosure. The holder of the mortgage - an interest in land serving as collateral has no option but to evict the property since the lenders have the liens against the property. The lender then sells the property to pay for the mortgage debt, thus terminating the borrower's right in the property

Mortgage Audit is the last resort borrower's resorts to. In this process a borrower seeks help from a consumer welfare group or hires a third party auditor or an attorney to check the existing agreements the lender and borrower agreed upon. The purpose of a mortgage audit is to unravel mistakes, discrepancies, irregularities and sometimes illegal transactions that is present in the contract he borrower may have overlooked. These irregularities when proved to be unjust and illegal can be used by borrowers to sue their lenders with. For those who do not have the financial capabilities and the time and resources to sue a financial company, negotiating and bargaining is an option. Borrowers use the irregularity they have uncovered to ask for extensions, loan modifications, better, lower and longer payment schemes to be able to keep their homes.

A Mortgage Audit proves to be very helpful in providing a bargaining chip for borrowers who would like to keep their homes. It can also help in correcting mistakes and irregularities or at times reinforce good and improved lending policies. If the proper steps in the mortgage audit are equipped, valuable information's like the quality of the loan and the propriety of the lending policies used can be verified and corrected.Mortgage audit should also aim to identify problems that should need to be corrected to be able to improve lending in the future. This should not be used as a negotiating tool but as a improvement tool as well. Securitization Audit

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