| A commercial loan audit is an important step that | | | | They may be forced to return all the interests paid |
| needs to be taken before negotiating for a | | | | by the property owner since the inception of the |
| commercial loan modification. During the process, a | | | | mortgage. Lenders are also not allowed to implement |
| professional examines and scrutinizes the details of | | | | the foreclosure provisions in the contract even if the |
| the original agreement. This is done to ensure that no | | | | mortgagor is found to be in default. And if |
| violations were made by the lender when the | | | | foreclosure proceedings have already been initiated, |
| mortgage was issued. If transgressions against | | | | the lenders are ordered to put them on hold until the |
| federal or state laws are found in the original | | | | issue has been resolved. |
| agreement, the provisions of the mortgage | | | | In the commercial loan audit, an expert will examine |
| agreement cannot be implemented. This means that | | | | the property owner's documents in detail to find any |
| the lender cannot implement a foreclosure of the | | | | mistakes that have been committed by the lender. If |
| property under consideration. | | | | any violations are found, these will be reported to |
| A commercial loan audit is necessary because | | | | the borrower. The result of the audit may be used |
| experts have observed that there have been many | | | | by the mortgagor to his advantage when he seeks |
| instances of such errors in contracts during recent | | | | for the modification of the debt that can be used to |
| years when the economy was still in bloom. Lenders | | | | forestall the foreclosure and subsequent repossession |
| who committed these violations against laws and | | | | of the property. Since the process of mortgage |
| regulations designed to protect the rights of | | | | modification is complex, the borrower usually seeks |
| borrowers may have to suffer consequent penalties. | | | | the services of a loss mitigation expert. |