Securitization Audit: When, Why and By Whom?

October 21, 2011 by  Filed under: Loans 

The Twin Cities Real Estate Market Yearly Summary 2010-2011 states that 2.5 million homeowners in America have been served with foreclosure notices till date. If you are a homeowner struggling to keep pace with mortgage payments, the fear of foreclosure would be looming large for sure. However, not all foreclosure claims are as justifiable as they probably seem. A securitization audit is something that becomes immensely relevant at this point, in order to perform the required checks.

Securitization Audit: When?
When a particular asset is converted into security, the process is simply known as securitization. When you opt for a home loan mortgage, your home loan too is securitized by the lending bank. In case you default on payments, the bank can impose foreclosure, assume control of the property and sell it to retrieve the pending amount. However, there could be several flaws in the securitization process, waiting to be unearthed. In such cases, the claim for foreclosure may not be legally binding. This is when a securitization audit should be sought to unravel the flaws.

Securitization Audit: Why?
The process of a securitization audit is quite like a legal investigation. The investigation is carried out to find out a couple of things. First, was your loan securitized in the first place? If yes, was it done following the correct procedure? Discrepancies in the securitization process are rampant these days. Lenders would typically resort to unlawful practices like separating the note from the deed; leading to incorrect securitization.

Wrongful securitization would mean two things for the owner. To begin with, the foreclosure he is facing would be declared unlawful or fraudulent. Second, he would probably have the opportunity do something to defend his claims before the property slips out of his hands.

Securitization Audit: By Whom?
Typically, securitization auditing will be carried out by law firms or legal experts who have been dealing with similar areas of law. Finding bankable options isn’t difficult these days. You can find some with the help of a simple online search. However, remember to hire someone who is experienced enough to understand the legal complications of the case. He should also be able to boast of a successful track record.

Ideally, hiring someone who is well versed with the local laws would be the best idea. When you look for options online, make sure you arrive at options from your state of residence. Considering that a lot would depend on the fate of the audit, expert intervention in the auditing job is important.

For expert assistance on securitization audit and other related legal affairs, visit The expert lawyers on board will do their best to help you establish claims against foreclosure.

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