Pre Foreclosure Exam

Homeowners today are now more likely than ever before to contest foreclosures.  It is believed that 6% of all homeowners in foreclosure currently contest the foreclosure, and that number is estimated to be 8% or greater by the end of 2011.

State and Federal Courts are increasingly taking into consideration the arguments of homeowners, whether it be Legal Standing, MERS, or Robo Signing.  If the foreclosure has any “defects” in the process, then it becomes more likely that a Court will rule in favor of the homeowner. 

Faced with all the “adverse publicity”, Regulatory Agencies like the Office of the Comptroller of the Currency (OCC) have stepped into the fray.  Recently, the OCC published a Consent Decree that makes demands of Lenders and Servicers who have or are foreclosing on properties, to ensure that proper procedures are followed andlenders are now being required to provide the OCC with an Independent Third Party Exam and Review.

States are also stepping into the fray, with many legislatures passing new statutes that affect foreclosure procedures.  As a result of all the new regulations and the propensity of homeowners to initiate litigation, a lender or servicer must ensure that each foreclosure is lawful and compliant.

LFI Analytics has introduced a new Pre Foreclosure Exam for lenders.  The exam meets and exceeds all the requirements of the OCC Consent Decree.  It evaluates all the various factors of a foreclosure that homeowners and Regulatory Agencies alike will look at.  The purpose is to ensure that the Foreclosure Process meets or exceeds all the legal requirements so that a foreclosure is found to be lawful.

When the review is completed, a full analysis will be presented to the client.  Deficiencies and Defects in the foreclosure process will be identified, and recommendations will be made to bring the foreclosure process into compliance so that a homeowner could not argue unlawful foreclosure in a Court of Law.