Pasadena, CA -- (SBWIRE) -- 09/11/2012 -- Like many residents of Santa Rosa, Lance Guyan had been plagued by extremely high mortgage payments. He was upside down in his mortgage by almost twice what it his home is valued at. Guyan did what so many residents across the nation have done and applied for a loan modification. He was turned down by Bank of America on numerous occasions and finally decided to take the road less traveled – and won.
Seeking justice, Guyan hired foreclosure defense attorney Art Hoomiratana from RealEstateLawCenter.org in Pasadena, CA. Going on Hoomiratana’s recommendation, Guyan obtained a securitization audit from Paladin Securitization Auditors in Cheyenne, WY who have a reputation for producing high quality securitization audits. In fact, the company is one of the few in the nation that can confidently say their securitization audits hold up in a court of law.
A securitization audit is a document that explores the legality of the process of bundling multiple mortgages into a single entity called a “security” and exploits any violations of Federal Trade Commission Regulations, as well as a plethora of other foreclosure and mortgage related laws and regulations. In Guyan’s case, there were more than enough violations to intimidate Bank of America.
The audit for Guyan’s property points out that no mortgage note was provided by Bank of America upon request, which alludes to the fact that they may not be able to produce it. Additionally, a Good Faith Estimate was not provided and the exact terms of the loan could not be determined.
The securitization audit also states:
“The loan appears that it was initially structured for a security, but the loan number could not be located in a reverse search of 2007 securitization completed by Bank of America. It is possible the loan is not securitized, or that it was placed in a special security with another bank. Because it was combined with a CHAFA second, it may have been held in portfolio for CRA reasons.”
Additionally, the loan appears to fall under Predatory Lending in that:
“There are questions as to the reasonableness of an interest only 40 year loan product, so that someone could qualify for payments as a first time homebuyer, at the same time putting them in $1.2 MM of debt on a $280k house. … (it) exceeds the reasonableness test.”
When the Hoomiratana (the foreclosure attorney), presented this document to Bank of America’s legal department and threatened to sue, they quickly agreed to modify Guyan’s loan terms, saving him $1,036/month in payments which ultimately allowed Guan to avoid foreclosure.
Seeing a bank crumble under pressure is hope for a nation of people that are in the same situation as Guyan. Couple that with the fact that an email and a phone call is all it took to procure the loan modification is proof that you don’t have go to trial to avoid foreclosure. Yes, sometimes the good guys do win.
Click here to see the actual Securitization Audit.
Click here to see the actual settlement agreement from Bank of America (4mB).
About Paladin Securitization Auditors
Paladin Securitization Auditors offers wholesale, trial-ready securitization audits to attorneys. They also offer unchallenged expert witness testimony.