Is ‘forensic mortgage analysis’ legitimate?

by DEBORAH FELDMAN / KING 5 News

Posted on February 8, 2010 at 7:22 AM

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SEATTLE — It’s an offer many struggling homeowners can find hard to resist. It begins with a flyer or phone call from a company offering to review your financial documents in order to find a dramatically lower mortgage rate. but the problem is, it often is an offer that is too good to be true.

Richard Hagar works at American Home Appraisals and does fraud profiling for government agencies. he says the latest scam snaring homeowners are companies or individuals offering a ‘forensic mortgage analysis.’ While there may be an occasional legitimate business offering the service, he believes most are not. “It’s with the rise of foreclosures that people see a new business/scam opportunity” he says.

Hagar says many of these companies are based in California, Nevada, or Florida, with a fair number popping up in Oregon, too. they are areas with high numbers of foreclosures, meaning more people desperate to save their homes.

“If all they do is look at your documents and say there’s an issue, that’s one thing. but if the next step is, ‘OK, let us negotiate with your bank, let us help’ that’s what the scammers are preying on,” he says. “I would not recommend anyone calling up any one of those advertisements where they say ‘we guarantee we can help you’ things like that. Again, because I’ve not seen a legitimate one of those yet.”

Hagar’s advice to people eager to re-finance is to reach out to your bank lender yourself. if that doesn’t work, he says to seek out a good lawyer or a licensed mortgage broker.

Finally, he suggests contacting a HUD approved counseling agency like the Urban League. he also says if people do take a chance with a forensic mortgage analysis, under no circumstance should you stop paying your current mortgage during the process.