Mortgage is defined as a debt tool that is secured by collateral in the form of a large real estate property. When an individual or a business fails to comply with the predetermined amount and period of repaying this loan, the financial institution or lender can evict the owner because this financial institution has a claim to this property.
Since the owner pledges the house to the lender, the bank can claim this property in the event that the homeowner defaults on paying the mortgage. In some cases, a case is brought to the court to settle this kind of disputes. Most of the times, the borrowers often opts to get a mortgage audit. A mortgage audit is a process wherein a third party auditor investigates if a mistake or a legal problem is present between the agreements and documents that were agreed upon by the borrower and the lender. Some homeowners who uncover lapses and other irregularities between their agreements and contract with these financial institutions can sue. Suing a financial institution that proves to have done irregularities in the contract they have agreed upon by the borrower is possible and can be won most of the times. The only problem with suing is that most homeowners do not have the financial capacity to do so.
Borrowers can ask an audit from an attorney or from a consumer advocacy group. Common mistakes and issues that are uncovered from this audit is the unjust valuing of the property acquired by the borrower. In rare case some banks and lenders securitize a loan, a move that is illegal and inappropriate especially for financial institutions that are trusted by a lot of borrowers and investors.
On the contrary, some individuals use a Mortgage Audit and the things they have discovered in this review as a bargaining tool. Most of the time, borrowers who are in the edge of a foreclosure simply wants to reduce their payments, get a better repayment scheme or other considerations that may help them to keep their homes. They use the information they get from a mortgage audit as a bargaining chip they can use with the banks and other lenders.Mortgage audit serves as a negotiating tool that can be used by the borrower in getting their loan modified. This is a wise financial move especially for homeowners who happen to pay religiously on their loans when they were capable of doing so.