Please explain the Mortgage Audit and Analysis process?

When you borrow money, there are laws that require the lenders to give you specific disclosures about the loan.  The disclosures are supposed to be on certain forms and presented in clearly defined ways.  These and other consumer protection laws are designed to protect you, the consumer, from predatory lending practices, including non-disclosure,  fraud, deceit, and usury (undisclosed retention of money). 

We examine (audit) your loan documents to be sure the lender followed the law.  If they didn't, we help you obtain just compensation for the broken laws.  

Is the use of Consumer Protection statutes another form of mortgage elimination? 

Yes. The difference is the emphasis and focus.  We want to make sure that the consumer is not the victim of predatory lending practices.  If the lender did engage in predatory lending, and the loan is a refinance, home repair, and home equity loan, the consumer can often cause the lender to rescind (or cancel) the loan entirely.  If lenders break specific consumer protection laws, the lender must stop collecting payments, and re-convey the deed to the borrower. Often the lender must also pay money to the borrower (monetary damages)

Mortgage elimination programs try to get rid of the mortgage using some device.  Each program attempts to do this differently.  Many attack the fraud of how the loan originated while others utilize some sort of “redemption” or “discharge” process to redeem the note and ask for re-conveyance of the deed.  Our focus is to make sure that lenders follow the laws that apply to every loan. 

A primary difference between TILA and other programs is, we use “black letter law” and to bring the lenders into compliance and courts honor that law.  Black Letter law is law that is generally accepted by the legal system.  The courts have a long history of ruling in favor of consumers when predatory lending is involved.   

What are the possible outcomes to doing the TILA process? 

The best outcome is cancellation of the loan and re-conveyance of  title to the borrower.  The paperwork from most loans fitting our parameters contains violations for which the lenders must rescind the loan contract.   

In addition, the law carries a statutory monetary award somewhere between $200 and $2000.  The exact amount is decided by the court. 

The borrower can also ask for additional monetary damages.  In most cases, the borrower lost money from predatory lending practices and can ask to be repaid.  The amount of damages is decided by the court.  In certain situations punitive damages are awarded.  In other words, the court orders the lender to pay “extra” money as a punishment. This can be in seven figures in some instances        

What happens if you can't find any errors in our mortgage papers?  Can I get my money back? 

To date, we have not seen one set of loan documents that were without any violations.  Many have multiple violations and other causes of action, with several of them being bad enough to put the possibility of free and clear title on the table.

We audit your documents free of charge. If there is not sufficient cause of action to warrant using our process, we will inform you of that before you pay anything.

Why are you looking for violations in the mortgage contracts?  Are you suggesting that the "lenders" are not telling us everything? 

Yes. Lenders have developed a notorious reputation for NOT telling borrowers the truth about their loans. This is why consumer protection laws were passed in the first place.  These laws are only effective, however, when consumers understand the laws well enough to know whether they're being followed or not.   

Going through the TILA process will help you become much better informed, starting with your own paperwork. 

What is Truth-in-Lending and how does it affect my loan? 

The Truth-in-Lending Act (TILA) is part of the larger Consumer Protection Act which includes laws aimed at specific lending practices.  The Truth-in-Lending Act is actually found in Title 15 of the United States Code, starting at section 1601. TILA is implemented by Regulation Z (Title 12, Section 276 of the Code of Federal Regulations).

The purpose of the Truth-in-Lending Act is implied by its name.  The goal, is for the loan information to be presented in such a way that the borrower can clearly understand all of the costs BEFORE signing for a loan.  This is to protect the borrower from deceptive lending practices. 

Is Truth-in-Lending the only legal tool that you use? 

        Other Consumer Protection laws include:

          Unfair and Deceptive Trade Practice Acts
          Real Estate Procedures Settlement Act (RESPA)
          Home Ownership and Equity Protection Act (HOEPA)
          Lender Liability
          Statute of Frauds  

We've been researching many of the programs that are available.  A lot of them require a great deal of education, and participation on our part.  How much will we be required to do if we select your program? 

There are two parts to TILA: the audit and the defense.  We do the audit and inform you of the violations and causes of action that we identify.  We also play a key role in the defense by preparing the settlement letters and if necessary, the lawsuit paperwork.  If you must initiate the court process, you do not need to have an in-depth understanding of the laws.  The paperwork is very strong and has stood up in court numerous times.   

What guarantees are offered?

This is a best efforts contract arrangement.  There are no silver bullets, as other programs would like you to think.  The possibility of free and clear title depends on several variables.  Our accuracy in identifying the violations and other causes of action is important. 

Our paperwork (the letters, and the lawsuit and accompanying documents), are also a critical component to your success.  And then there is YOU.  How far are you willing to take the process?  The severe violations and other causes of action will get you clear title if the lender comes to the settlement table or you go to court and win.  We give you the paperwork to accomplish these goals.     

If I use your service, will I ever be able to get another mortgage? 

Using TILA should have no negative effect on your ability to obtain other mortgages, if that is what you desire. YOU have done nothing illegal, the lender has.

Could I get another loan on my home with the same lender and put it through the TILA process again? 

If YOU were a lender and you had just had a customer who took you to court and got their mortgage cleared and their loan cancelled because you had not followed the law, would you be happy to see that customer walk through your doors and ask you to repeat the process? 

Having said that, what makes you want to go back to the same lender?  Why not go to a different lender?  Besides, your place is free and clear.  Why go back into debt? 

Will it affect my credit rating and credit bureau reports if I use the TILA process?

When you win the case against the lender, the order specifies that the lender cannot damage your credit rating and must remove all bad marks associated with any foreclosure actions, etc.

The lender is responsible for canceling the loan.  This is very different from you not making the payments.  If payments were in fact not made, and the court finds that the lender is involved in predatory lending and cancels the loan, then no payments are owed.  In the end, the credit rating must be cleared. 

Can the bank put a mark on my name to damage my future ability to obtain loans?   

        That would be an illegal act and can result in more judgments against the lender.

What would be a worst case scenario if I use the TILA process? 

The worst thing would be that you could lose the case and continue as you are now. If you are willing to continue pressing forward, there is a likelihood that you will win.  Most cases are lost simply because the person quit.  It is somewhat like tennis: you can lose a round, but that is not the whole match.  If you walk off the court after one round lost, then that is the end of the game.  We have a good track record in winning because we press forward and serve another round.  Our paperwork is strong and the laws are on your side, so why should you quit?

What can I expect from you when I send you my paperwork?  What happens next? 

When the paperwork arrives at our office, we call and let you know that we received it.  We also ask you some preliminary questions about your situation and the loan. 

Then, we do the audit and analysis on your paperwork.  Please figure 30 days for this part of the process.  When the audit and analysis is complete, we call you and go over the violations and other causes of action, we found.   

Next, your loan case goes to one of our paralegals.  That paralegal will work with you throughout the remainder of your process.     

If you are not in foreclosure, you are given a letter to send to your lender.  They have 20 days to perform and comply with the law.  Sometimes, the lender will ask to negotiate a settlement after receiving this letter.  Sometimes, the lender will make a senseless or “fluff” response, and other times they will ignore the letter altogether. 

If the lender does not agree to settle the loan after 20 days, then you send them a Notice of Default and give them an opportunity to cure their default.  After the Default letter, if they still don’t respond, we have an attorney send them a final Demand Letter in an attempt to get them to settle without going to court. 

Some lenders cancel the loan during this preliminary period.  However, it is unlikely that they will agree to monetary awards or damages.  It is often necessary to move forward with a law suit in order to compel them to follow the law. 

Finally, if no settlement is offered, or you are not happy with the terms of their offer, then our attorneys will file a lawsuit against the lender.  The lawsuit includes several documents that are filed in the court and served on the lender. Many times THIS will bring the lender to negotiate a settlement.  The filing of the lawsuit concludes Phase One of the TILA process. 

If continuing court action is necessary, our attorneys will carry this into court.  At that point you have entered into Phase Two.  There is no way of knowing how quickly or how many documents it will take to cause the lender or the court to act in your favor. It is in the lenders best interest to settle quickly. 

For those in foreclosure, some lenders have withdrawn the foreclosure voluntarily after the customer filed the lawsuit.  Some lenders have cancelled the loan without further action.  Every lender is a surprise - there is no way to predict how your lender will respond.  It is wise to plan on pressing forward to a victory.  Remember, when you win, they may have to pay your legal fees. 

Court 

Will signing a contract with your company require a court appearance? 

It depends entirely on the lender.  Some lenders move quickly to get things resolved.  Others take more time.  If the lender does not rescind the loan when they receive the letter, and they don't respond to the Notice of Default, and the following demand letter, then you have to file a lawsuit to go forward.   

One of the reasons lenders have become so careless is because people don't like to go to court.  The lenders know this.  And, one of the reasons that people don't like to go to court is because up until now, they have not had support to help them win.  We are changing all that.  We are on your team and we have been very successful in this work.   

What do you think the chances are of our case having to go to court? 

That depends upon several factors.  The primary factor is what you want.  If you want the loan to be rescinded, there is a fairly high likelihood that you will have to go to court to get that.  (although some lenders rescind the loan without court)   

The first two cases have already been awarded their homes free and clear by each of the judges. Next the jury must decide on the monetary award. That will average around one million dollars. Other cases are moving forward on the court dockets and we will have still more to report in the coming months.

Each case is unique.  It is wise to PLAN as if you will have to go to court.  If that becomes necessary, then you are prepared. 

If there is court action required, will/can you represent me in court? 

We have attorneys that will go to court for you. 

If I go to court, do I have to travel to where the lender is?  Or, can I bring the lawsuit in my local area? 

        The lawsuit is filed where the property is located. 

The Documents 

What documents do I need to provide for the TILA process? 

We need TWO sets of your complete loan documents.  We want every scrap of paper that was given to you during the entire loan process.  The loan, the Good Faith Estimate application, and all other documents from the mortgage broker, the Settlement Statement, as well as the Note and Mortgage or Deed of Trust are all important.  Additionally, each loan usually has many disclosures.  The audit involves all these papers.  The law says that certain disclosures are supposed to be made, on certain forms, and grouped with other documents.  The more documents you provide, the more  violations and causes of action we will be able to identify.  There are other documents that will help us.  They are outlined in an attachment to the contract.  

If I do not have these documents in my possession, how may I obtain them?        

You can ask the title company, or the closing office for these documents.  DO NOT ASK THE LENDER for the documents, it defeats the purpose.  It is better not to reveal what you will be doing with the documents, because it is possible for them to alter documents before giving you a copy.  

Do not mix up the documents you have with the ones you obtain.  Do not mix documents from one source with documents from another source. 

You ask for my paperwork from closing.  I have a refinance.  So, do you want my paperwork from the refinance or the previous refinance, or the original loan? 

We need the paperwork from the current refinance, home repair, or home equity loan.   

If you are in foreclosure, we need the Acceleration papers, or the Notice of Default papers, and any court papers.  If the foreclosure is in court and you don't have the papers, you need to go to the court and obtain these papers.  If you are in bankruptcy, we need those papers. 

Who qualifies for the TILA process? 

My husband lost his job and has not been able to find a new position.  We've gotten behind in our payments.  Our "lender" is threatening to foreclose.  Can you help us?

 Yes, we can help.  But, the more time you have to slow down the lenders, the better off you are.  If you are behind on your payments, that constitutes an “Emergency,” and there is an additional cost involved.  If you are close to foreclosure or headed for a Sheriff's (or Trustee's) sale, that also constitutes an Emergency. Talk with your consultant and she or he will explain the pricing.   

Is there any customer that cannot be helped by this process? 

There are a few exceptions, but the parameters we are looking for are:  A loan, less then three (3) years old, and either a refinance, home repair, or home equity loan. 

Someone who has commercial or agricultural real estate or a commercial loan that is not collateralized by personal assets would be outside the scope of the TILA process. 

Another very rare person (we have not seen that yet) would be that person whose loan papers conform completely to the laws.  If the bank has followed all the regulations carefully, then our audit will not discover any violations.  This borrower was fully informed according to the law.  There is no need for any defense against this mortgage contract. 

Does this process cover second homes, cottages, vacation condos, rental properties, etc? 

Yes, but this is on a case by case basis.  We would have to analyze  the loan documents to determine if there are sufficient causes of action to make it worthwhile. That analysis is free.  

My husband and I are divorced, so is there a general rule that applies when both are signors on the mortgage papers? 

The rule is that the first signer is generally recognized as the primary borrower.  However, there could be exceptions and we will consider your paperwork on its own merits.   

If two people's names appear on a loan, only the primary borrower needs to do the TILA process (both people do not need to do it).   

Can you help people in Canada? 

We can help people who have loans from a USA lender. 

If someone rents out their residence and all the loan paperwork is in their name, can they still put that property through the TILA process? 

Yes, if it was originally intended to be their primary residence as indicated on the loan application.   

We just don't have the funds to start your program.  Is there any way that you can help us? 

We do have an associate referral program that could provide you sufficient commissions to get you into the program

Must the mortgage be current? 

No.  We can help people at almost any stage of foreclosure, as well as those who are current in their payments.  However, if you are behind on your payments, that is the definition of an emergency.  Please discuss the requirements for an emergency case with your consultant. 

If you are able to keep making your payments, we strongly suggest that you do so throughout this process.  If, you do end up in court, you have what is known as “clean hands.”  That puts you in a little stronger position. 

How does TILA help someone who IS NOT current in the payments? 

The key differences between a borrower who is current in their mortgage payment and someone who is not current, is the urgency of the situation and the amount of work involved.  

Our approach is the same:  we audit the loan paperwork and we work with you to communicate to the lender that there are violations. 

If you are in an urgent situation, it may require that you skip the letter writing portion of the communication and jump straight into an existing foreclosure lawsuit or bankruptcy action.  However, everything you do rests upon the audit of the paperwork and the violations of the consumer protection laws. 

What if I'm in foreclosure, or the bank has already sold my home? 

We can still help.  If the bank has sold your home, the buyer must still go through a court action called an "Unlawful Detainer" or "Forcible Entry and Detainer" (it goes by different names in various states).  The buyer must notify you of this court action.  If we have a spot on our emergency calendar, AND you get us two complete sets of your loan documents immediately, we can prepare court documents for you to stop the Unlawful Detainer and repossession of your home.  You must act immediately. 

If the sale has not occurred yet, take action right away so you can prevent this from happening.   

Does it matter how old my loan is? 

Yes.  Any loan older then three (3) years old, must be refinanced before applying the TILA process to it. 

What if I’m in foreclosure?   

We are really good at stopping foreclosures.  However, we suggest that in that situation you should prepare for the worst.  You might even have to move out.  If that happens, it only means that you have lost a battle but, not the war. 

That being said, we have stopped foreclosures even after the Sheriff’s sale.  If you are in this situation give us a call to see how we can help you. 

General Questions 

Even if a bank makes "mistakes" in its loan paperwork, is it ethical to not make the payments that I promised to make? 

It is true that if someone actually lends you their assets, it would not be right to keep those assets without compensation.  It is also vital to keep our word.  So, why do we work so hard to get loans rescinded when the lenders violate the consumer protection laws?  Very simply, the lenders DO NOT lend you any assets and they obscure the real source of the loan funds.  There is also very little understanding that what we call money is really just an IOU which is a debt instrument in the first place.

If your attorney is not familiar with state and federal lending laws, this is merely an unfounded opinion.  And, has as much legal impact as anyone's uninformed opinion.  Each attorney knows but a small part of the enormous body of law.  Many attorneys are not familiar with the Consumer Protection Act and the related laws.  There are  only a few thousand attorneys that practice Consumer Law. 

It is an illusion that all attorneys know “the law.”  That illusion is quickly dispelled by a quotation in the introduction of one of the first volumes that a law student receives in their training.  From page 2 of the publication, "how to find the law" by West Publishing Company:  "It is a well-kept professional secret, revealed to you here as an aspirant to membership in the legal fraternity, that no lawyer knows more than a relatively infinitesimal part of the law, nor does any judge."   

The law clearly states that when a lender commits certain violations of the law in regard to loans, those loans can be rescinded. 

If you're so sure of your program, why don't you give us a guarantee? 

As with everything in life, there are no guarantees.  There are many players in this game:  You, the Lender, the Court, and us.

The best guarantee is the fact that we understand the law and prepare excellent paperwork.  And, we are prepared to go the distance.  We do not quit.  It is important to realize that lenders are accustomed to people being intimidated and giving up.  With us on your team, you stay right in the heat of battle and keep coming back.  If you lose one round, serve the next one.  The law is on the side of the consumer in this situation, and we help make sure that you are supported and protected. 

We've heard about a new program called "Bank Settlement," what's that all about? 

There are some organizations that are trying to work with "friendly" lenders to have the Notes purchased by these lenders.  One variation is that the customer continues making the payments for a year, after which the property is to be deeded back to the customer.   

Could there be such a thing as a "friendly lender"? 

So far, we're not convinced.  The very way that banking is structured, it is unfriendly to the consumer.  If you think lenders can be friendly, we once again refer you to books such as "The Creature from Jekyll Island" and "Debt Virus," among others.  Any entity that can participate in the overall deception being perpetrated about money, is not friendly to the best interests of the common people.  Keep in mind that most bank personnel have no idea of how banking works.  Even bank presidents and auditors are usually ignorant, although they have considerably more clues.  The attorney who works in the TTL department is probably the best informed person in the whole banking chain.  

Timeline 

How soon may I expect to see results? 

It depends upon the situation when you begin the process.  If you are in any part of the foreclosure process, the results may be nearly immediate (your paperwork can stop the process cold, in its tracks).  If you are current in your payments, the lender may respond immediately, or may hold out for up to 3 months. 

If the lender is silent, the filing of a lawsuit necessitates their response within a month. 

This is a giant arm-wrestling match and so the action can vary and can be dramatic or simply a standoff before the fall.  

How long will the process take from beginning to end? 

It can take anywhere from 2 weeks to 2 years.

Each situation is a new surprise.  One lender rescinded the loan when they received the demand and discovery letter.  Others have simply ignored it.  Some lenders have rescinded the loan right after the court paperwork was filed.  Yet, others don't budge until the court forces them to comply with the law.   

Keep in mind that "a response" is different from the results you are seeking.  It might happen right away and it might take persistence on your part.    

When can I stop making payments on the loan? 

As noted above, we suggest that “if possible,” people should keep their payments current until settlement or court resolution.