Forensic Examination of the Loan Docs

Paul,
 
Recently, I attended a seminar in Temecula CA yesterday regarding Forensic examination of the loan docs, the firm’s representatives made claims that during the litigation period (which usually takes 1 yr) after some TILA/RESPA violation has been submitted to the lender for settlement, the homeowner has
 
a) no obligation to pay mortgage during that 1 yr period.
b) may collect all the interest & principle paid since the home ownership if the lender relents & gives in
c) credit reporting by the lender is frozen so no negative credit is reported to the credit agencies.
d) at the end of the process, the free clear title is handed to the homeowner.
 
They charge $995 initial fee & if the client agrees to go ahead with the TILA/RESPA litigation after some violations in loan doc are found, there is a fee of  7K – 15K (depending on the homeowner circumstances) due after 3 – 4 months into this litigation period. If the title of the home is successfully won, then there is a fee due equal to 30% of FMV (fair market value) of the house at the beginning of the litigation process.
 
But this sounds too good to be true. And invariably, when it sounds this good to be true, most likely it probably is.
 
Do you have any thoughts on this?  Is this legally possible? Scam?
 
I desperately want to find a way to reduce the principle in my house to the current market value but no one will even look at me since I’m current with my mortgage. Do I need to deliberately skip few payments in order to get lender’s attention? I don’t want to ruin my credit.

Thank you in advance,
 
Eric 

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Hello Eric,

I can’t vouch for the company that performed the seminar you attended, and while there is some truth to the claims, the ‘a through d’ you’ve listed won’t apply to most loans and they painted a much more rosy picture than would occur for the average homeowner. 

They are selling forensic loan audits for $995.  Might be worth it, might not. 

I don’t have an opinion on that company, but the service itself could be valuable and particularly for those who refinanced a primary residence within the last three-years where the loan proceeds paid off a different lender.

Thanks for the questions and hope this helps.

Paul