Foreclosure Defense and Offense: Evolving Mortgage Audit Criteria

The start of every case, as I see it, is the collection of facts and documents, so that a complete mortgage evaluation and status report can be prepared by an independent third party who can serve as an expert witness if the need arises.

The current “cottage industry” of TILA audits is insufficient but a necessary part of the entire package that needs to be completed in order to properly advise a homeowner, as well as impressing an attorney with the validity of claims to be made both defensively and offensively.

This requires not only a thorough mortgage audit but a case evaluation from the standpoint of issues raised by securitization of loans. The current Qualified Written Request form being used by most services dates back prior to securitization, as does the methods and analysis of the of the mortgage process in a specific transaction.

The objective is to get the case in position where it can be settled without litigation. This is not always possible, but there are a number of forms, letters and strategies I have either created or accepted from submissions of other lawyers, in which the Trustee, the mortgage broker, the appraiser, the escrow agent, the title agent, and the “lender” are put on notice that there is a damage claim that might apply against them and that might be covered by errors and omissions insurance policies or other insurance.

The failure of mitigators, auditors, and lawyers to see these transactions within the context of table-funded loans, assignments, pooling and securitization is a serious flaw in the advice and strategies employed.

You can play a part in this movement in which homeowners assert their rightful claims to be restored to the position they were in before the mortgage and appraisal and securities fraud occurred. While we are dedicated, we are not rich. Hence I have brought in some people who are putting my philanthropic efforts into a business model in order to pay those who wish to help but cannot afford to do so without compensation.

I designed a package of services that in my opinion meets the required criteria for the process to commence — and to enhance the prospect of a favorable result for the homeowner. While I have spoken with and reviewed the work of dozens of mitigators, auditors and lawyers, getting them to accept the criteria, which requires more work and less profit, has been a challenge. However we have one group thus far that is doing the audit package work as I have asked and I am assisting them. And we have many more attorneys now than we had even one month ago.

16 Responses

  1. Thought-provoking ideas . I was enlightened by the points – Does someone know where my business could possibly find a blank a form document to use ?

  2. May I please have the contact info for the one or more groups thus far that are doing the audit package work? thank you neil !

  3. My QWR doesn’t address specific inaccuracies of, say, escrow account overcharges. If I understand correctly, such a concern raised in the QWR would “stop the clock” on negative credit posting until inaccuracies have been remedied. Simply stating it is believed (and rightfully so) the lender doesn’t have standing to foreclose would be an assumption and not a material fact precluding the foreclosing party from negative credit posting. Comments?

  4. I’m using a QWR which was –in its original template form –15 pages. I’ve cut it down to 6 as 15 has been critisized as unreasonable. It does hammer out securitization issues in over 20 Q’s.

  5. STEVE,
    Could you be so kind to let me look at your upgraded QWR?

    Also, some time back you suggested you knew attorneys in Miami one could use for foreclosure defense. Could you recommend some who know this securitization stuff, and aren’t just out to make a fast buck? Two of the latter have burned me at critical junctures, leaving me a low impression of Miami attorneys.

    I have a foreclosure case where my late mother’s signatures and initials were forged. She was already eight years into Alzheimer’s, and her loan application, income statement and work history were fraudulently cooked to qualify her for a loan she could not afford on her meager retirement.

    Her loan got securitized by Washington Mutual, which claims to have been assigned the note by the original “lender”, the day of the 2000 closing, but this was never disclosed or recorded.


  6. my email is

  7. Steve Dibert I would also much like you to Fw me coppies of these QWR’s please

  8. Steve can you forward me the QWR you are using?


  9. Jose this “Original Note” could be a fake.The signature was placed on by the use of a printer in blue ink.Make sure to find a signature expert to look at that Original Note.I know such a person he is an ex police investigator in this field.

  10. Is there anyplace to order the package?

  11. How do we get the package?

  12. The standard QWRs that most people use are insufficient. I have updated the ones I use to request copies of the transfers of the securitization. I have had great success with mine because the servicer drops the foreclosure. I don’t know if it’s because of luck, the fact that I have “Mortgage Fraud Investigations” on my letterhead or the servicer can’t prove they have the legal standing to proceed with the foreclosure.

  13. Aurora has come up in our case with what appears to be the original note, the lawyer tells us, the foreclosure attorney has the original note. That may be true but if I get the point of your blog dissertation on note holder and collaterilazation issues, the note does not mean they actually has the right to foreclose. What should we challenge them on? I do not trust any foreclosure attorney, they do not make money if they do not foreclose.

  14. How do I get help on a foreclosure? The mortgage, in only my husband’s name, was discharged in HIS bankruptcy and then he left me! Now Wells Fargo wants my house and all the back payments, too! They say “hey, you’re married – legally you’re responsible for his debts”. Oh, really – well what about his DISCHARGES, too? Not a two way street, huh?

  15. This is very true you don’t know what your options are unless you know the facts, and that starts with the mortgage audit. You need to know what ammunition the Lender, Broker, etc.. gave you by breaking the rules of engagement in a Mortgage/RealEstate/Securitization transaction. It is also very important to get it done as soon as possible to avoid any expiration of any limitations. To the Lawyers and Professionals who are contributing thier time and knowledge more than anything to do the right thing I extend my Greatest of appreciation, and am very happy to hear about the progress.

  16. how do we obtain this package?

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