Mortgage audit won't help loan modification

Rashmi Airan-Pace, a partner in the real-estate law firm Airan2, Airan-Pace & Crosa in Coral Gables, Fla., reports much the same experience.

"I used to try to sell every client on the idea of a forensic audit," she says, "and send a very aggressive letter to the bank for violations of TILA or RESPA. What we found is that generally we were not getting the results we expected. Banks are not responding, and my experience is that they're not helping people get reductions. I almost felt like we were being blacklisted."

Litigation costs

Some people want a mortgage audit to find out what's wrong with their loan, Mobley says. Others want to be able to call upon a mortgage auditor as an expert witness -- though very few are qualified as such.

"Many clients are determined to sue, but find they can't afford litigation," she says. "In cases where the homeowner insists on it, we'll do it, but in my opinion they only create unrealistic expectations."

"We will do audits if a client is denied a modification and wants to file a lawsuit against the bank," says Airan-Pace, "but only if it makes sense, and they are pursuing an aggressive strategy. Litigation is costly and not fun."

Any consumer opting for an audit, Airan-Pace says, "needs to do their research and make sure that whoever they hire has real experience. There are many people, both lawyers and nonlawyers, going to weekend seminars and claiming to be foreclosure experts. And, of course, people should be wary of anyone who makes lofty promises or guarantees.

"Unfortunately, there is no quick fix."

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