The truth behind a homeowner's chance of obtaining a loan modification to save his/her home from foreclosure or to even acquiring a short sale to save his/her credit if the homeowner wants to get out from under his house has to do with several factors including:

• How the service provider can make the most money
• The rules set by the investor behind the loan/note when initially originated
• How piece-mealed the mortgage has become
• The appraised value (broker price opinion)
• The bank's ability to make money as an REO
• FHA & Fannie Mae guidelines (narrow and limiting)
• Homeowner's hardship
• Debt to Income ratio
• Communication and truthfulness between homeowner and lender
• Luck
• and the Forensic Audit.

Of all the factors listed above, the Forensic Audit is the most powerful tool/strategy that a homeowner can have at their disposable to force a loan modification. The forensic audit studies and evaluates the original loan documents, TIL documents, and the appraisal. The forensic audit is completed by an attorney who looks for errors, fraud, discrepancies, and omissions when the loan was first structured and originated. Any financial calculation errors, omissions of documents, predatory lending practices, changes in terms of the loan, inflated appraised value or incorrect legal descriptions etc. can be just cause for a restructuring of the current loan (modifying of the loan) up to owing the homeowner some serious money and clearing up the homeowner's credit. With a forensic loan modification the foreclosure is stopped. The homeowner then has in effect a modified mortgage with "new" terms and will save the homeowner's credit.

The Forensic Audit is used for the Forensic Loan Modification should the homeowner want to stay in their home. It usually takes from two weeks up to 3 months to obtain a loan modification. The negotiations is between the attorney representing the homeowner and the attorney/legal department for the bank or lender. Like the foreclosure process, the forensic loan modification has timelines as well. The bank or lender cannot ignore this request and must respond to the forensic loan modification within a certain timeframe or will be in default. Errors, omissions, predatory lending, and fraud etc. makes for an unenforceable mortgage. The bank's legal department/attorney must correct the mistakes and make the homeowner whole. Having an attorney-based loan modification makes for a better loan modification since it is structured to the home-owner's needs and ability to pay. Past loan modification plans have been nothing more than a forbearance plan with extremely low success rates. The Hope nonprofit network groups have basically been put in place to protect the lender not the homeowner. The nonprofit organizations are paid through government grants. Who established FHA, Fannie Mae and Freddie Mac?

Thus, if a homeowner wants a loan modification, then it is best if he/she hires an attorney-based forensic loan modification company. By most state laws, there are no upfront fees and one doesn't pay for the loan modification until it is completed...a contractual guarantee. Forensic loan modifications are easier to obtain near the beginning of the foreclosure timeline, but can be obtained even after the sheriff sale has occurred. In Michigan, it may even be possible to obtain a forensic loan modification with even a stay of eviction. The sooner one acts, the easier and more likely of a negotiated settlement.

If a homeowner has a definitive hardship, a high interest loan, an ARM, or cannot refinance due to poor or bad credit, no equity, high debt to income ratios, has been denied a loan modification, and/or suspects fraud or predatory lending then a forensic loan modification should be considered especially if facing foreclosure and one wants to save their home.