About Me
Over the past 8 years I have originated, processed and audited hundreds of residential mortgages. I am now using my knowledge and experience to assist distressed homeowners facing foreclosure. Most adjustable rate loans originated in the past few years contain Truth in Lending Act (TILA) violations, which may be uncovered during a forensic mortgage audit.
Upon discovery of a TILA violation you may have the right to rescind your loan and receive a refund of all fees and interest payments you have made since consummation of the loan. However, in most instances to facilitate rescission you will be required to return to the lender the principal amount of the loan advanced to you and this is often difficult to do if you cannot obtain new financing. Therefore, even if you rescind, rescission by itself will not be of much help if your goal is to negotiate an affordable payment and stay in your home.
In addition to auditing your loan documents for TILA and RESPA violations I also look for signs of predatory lending practices, fraud, misrepresentation and deception. Did the lender properly underwrite the loan to make sure it was affordable? Was the appraisal inflated? Did they explain the impact of yield Spread Premium on the overall cost of your loan? Was the broker properly licensed? Did you truly benefit from the loan?
Another question to ask is if your loan has been sold to a trust for securitization. I look to see if the mortgage and note were legally transferred to the trust within the time limits prescribed by the trust agreement or PSA (pooling and servicing agreement). This is a highly technical process which is extremely time consuming but indispensable for an effective foreclosure defense strategy.
Please fee free to contact me to discuss your case.
None of the statements or comments on this site should be construed as legal advice.
Dean Mostofi
800-564-2764
Mr. Mostofi,
Your informative article on predatory loan practices applies to my current situation. Can you tell me exactly where I would go to file a pro-se TILA Rescission motion?
I’m not sure I can handle this by myself. Would you know of anyone in my area who could help me prepare the motion properly? I can pay a fair fee for the work and take it to the office in question myself.
I live in Jackson, Ocean County, New Jersey. IndyMac Bank ‘flipped’ my loan and the personal audit you have now helped me do indicates there are several TILA violations involved. I have received the bank’s letter of intent to foreclose.
I appreciate the help you’ve already given.
Sincerely,
Victoria
aka previously middle class, now working poor, soon to be living in my car
Victoria
October 21, 2008
Dear Mr. Mostofi,
I have been dealing (for over 5 months) with a short sale offer submitted to Chevy Chase bank. They continue to “loose” the offer and have not even done an appraisal on the property. Now, I would like to request the loan documents from the bank to find out what they have or don’t have. What is the time period that they have to respond? If you do an audit, does the price include a follow up letter to the bank initiating any litigation?
Trish
April 3, 2009
How can I help? I am a licensed broker/owner of a real estate company in Kansas, Missouri and working on Colorado as well. I too use my past knoweldge and investing experience to help homeowners in default. There are soooo many violations I see in just about every case – I dont know where to start… Perhaps we can start a national network to process some of these and help more. In full disclosure – I am also still investing – and often buy homes from individuals needing the help who will not benefit from a traditional sale or other “loss mitigation” efforts like loan modification or deferments. I sell a lot of REO homes as the local broker and see a lot of fraud from the begining thru the end… a lot of homeowners are getting locked out prior to redemption rights having expired and without court orders… in some states – OK – in ones like Kansas – its just wrong and lenders can get in a lot of trouble – especially those field services people, locksmiths and other agents/brokers who should know better…
Anyhow – if there is anything we can put together on a national scale that I can help with – please let me know. I’d be honored to help anyone you know in my areas of expertise.
Eric Henderson
August 2, 2009
Mr. Mostofi,
My servicer is IndyMac bank and they purchased the loan about 2 servicers removed from the original lender. What is the best method of determining if your loan has been securitized?
Chris
September 17, 2009
You can start by asking Indymac who owns your loan. Who was the original funder of your loan? What type of loan is it?
Mortgage Auditor
September 17, 2009