Your loan may be unlawful, and you may be entitled to substantial damages whether or not you are currently in foreclosure. A forensic loan audit looks for violations of federal, state and predatory lending practices. Approximately 85% of forensic loan audits to date have uncovered violations in the TILA (Truth in Lending Act), Good Faith Estimate, RESPA (Real Estate Settlement Procedures Act), and in the Predatory Lending and Real Estate/Mortgage Fraud regulations.

What exactly is a forensic loan audit? A forensic loan audit is the comprehensive review of all documentation, legal paperwork, transaction data, and other evidence pertaining to a real estate loan that has already been funded. A Forensic Loan Audit identifies any illegalities performed by the lender, their broker, or other parties in conjunction with the loan. During the audit process, a professional should review your loan to ensure that it meets all legal requirements that were in effect at the time the loan was funded.

Why is this audit so important? This simple and straightforward answer is, loans must be legal to remain enforceable by the lender. Loan violations are serious offenses of federal laws and lenders may face stiff fines and penalties for breaking the laws. For the most part, lenders and banks are firms run by reasonable business people. Begrudgingly, they understand the financial mess they were instrumental in creating, and want to avoid any possible large fines or being faced with expensive litigation.

How does the average home owner benefit? Violations are like bullets being loaded into a gun, used by the audit team to argue your case with the lender. As a rule, the more violations, and the more severe those violations are, the better your chances of obtaining a favorable settlement is going to be. This settlement may include punitive damages, attorney fees, lower monthly payments, a principal reduction, a delay or prevention of a foreclosure sale and more.

There is a saying with universal application that states that a person who elects to represent himself has a fool for a client. This is not the time or the place to try to test out your negotiating skills. There is far too much at stake. Your best course of action is to hire an attorney who is skilled in mortgage lending and real estate law. And particularly one who knows and understand the forensic audit principals. He or she will determine the proper course of action. If your loan is found to contain irregularities and is considered unlawful you may be entitled to compensation and other awards. At worst, you can be assured of an attractive loan modification on terms more to your liking.

What is predatory lending? Dishonest behavior by many lenders, bankers, brokers and their sales force has caused the recent collapse of the financial markets. Examples of loans that may be considered predatory include pay option arms, stated income loans, bait and switch loans, elder abuse and other similar type loans where unscrupulous mortgage lenders and/or banks took unfair advantage of the borrowers.

Summary. A forensic loan audit may uncover certain irregularities which in turn will give your legal team the upper hand when it comes to dealing with your lender. Banks would rather negotiate than litigate. At the end of this process many homeowners who have been the victims of predatory lenders are able to rectify a great deal of their problems, including the realization of lower interest rates, reduced principal balances, foregoing past due balances and most importantly keeping their home and their sanity.

Location is key to creating the volume needed to run a successful restaurant. You would be well advised not to get in over your head with a lease that will bury your chances for success from the get-go. On the other hand, do not choose an out of the way location simply because the rent is more affordable. Remember the old adage about getting what you pay for. Selecting a market and location for your restaurant will depend to a large extent on the type of restaurant and the menu you will be offering.

Unless you are taking over an existing location, the build out costs for leasehold improvements, equipment, seating, flooring, lighting and related capital outlays can easily exceed $150,000. These are what some in the business call sunk costs, meaning they are expenditures that take years to recover assuming your business is able to survive that long. Either way these are upfront costs you will incur, and if you are fortunate enough you will be able to amortize these expenses over a period of many profitable years in the future.

In the initial 6-12 months or longer, be prepared to spend long hours and weekends away from your friends and family. If you are fortunate enough to make it, it will be due to a combination of hard work and dumb luck. If, on the other hand, your efforts prove futile, be prepared for the inevitable, specifically, you ending up as another statistic in the food industry, without friends, family or savings to fall back on.

Hiring, training and managing restaurant employees are probably the most difficult tasks that the new restaurant owner must face. If you are an easy going individual, your employees will take advantage and walk all over you. If you are overly strict, they will leave and go somewhere else. The restaurant business is one where your employees, from your cooks to your busboys can either make or break your business. In many cities and even smaller towns, newspaper columnists write articles about the local eating establishments. A great review will usually bring in new business for a week or so at the most, whereas a bad review could ruin your business entirely. An unfavorable report from your local health department could also be devastating.

Managing a restaurant staff is a difficult task. It can be one headache after another. Employers find that many restaurant employees are unreliable and uncooperative. The restaurant business is plagued with staff turnovers. To add insult to injury your good employees are often wooed away by your competitors.

Keeping your doors open and your seats filled with patrons can be an ongoing source of anxiety. There is a lot of truth in the statement, Opening a restaurant is the easy part, the real challenge is making money at it. Dealing with day to day problems is another aggravating exercise. Equipment always breaks down, usually in the middle of rush hour. Customers do complain, even in the finer restaurants. There is always something that will crop up to put a glitch in your day. Thats all part of the business. If you survive the initial years, in time you will learn how to run the business and cope with all the problems that arise. And in the end, if you are one of the fortunate survivors, you will recoup your investment and begin to reap the rewards.

Opening a restaurant in the best of times is difficult. A weak economy certainly doesnt help. Before you dive in head first, do your homework and weigh all your options. One journalist jokingly commented that, If your restaurant is failing at least you dont have to worry about competition. On the other hand, if you are successful, that too may be short-lived as competitors move into your area, to capitalize on your new found wealth, with bigger and fancier restaurants to steal your customers away.

2. The Sense of Smell Test.  It has been said that the aroma from certain foods acts like an aphrodisiac to the senses. The seductive smell of sauteed caramelized onions can overcome the strongest resistance barriers.  Add to that the enticing scent of fresh brewed coffee and warm pretzels drifting through the air and the magic spell is artfully cast. Depending on your market area, you might add certain spices to the hot plate to liven up the assortment of aromas even more. If they were not hungry before, the hodge podge of pleasing aromas will draw them in like robots in a trance. 

3. The Sense of Taste Test.  Never cut corners on your food products. Always serve up the best quality. If you have to, raise the price before you cut the quality. If you are selling hot dogs, use all beef hot dogs and sausages, such as Sabretts, Hebrew National, Vienna Beef or Nathans depending on where you operate your concession. Your product cost will be a little higher, but your chances of success will also be greater. You want your customer to enjoy the food you sell and to enjoy the experience of stopping and eating at your stand. In order to survive in this business you must build a following, a repeat business as well as a referral business. Remember this rule. It is of paramount importance. Never skimp on quality. Buy the best quality products even if you have to raise your prices.

4. Speech Test.  Know what to say when a potential customer walks up to your stand. Be helpful and offer suggestions. And make sure you know how to upsell. Always ask if they would like the special combo meal. Just like you might hear at Burger King.

5. The Audible Sense Test.  Always listen to what the customer is saying. He or she may be offering you clues. For example if the man says he is on the way to his office, you might ask if he wants to take a soft pretzel for later, or why not take two; one for him and one for his secretary. Offer to put them in an insulated bag while telling him they’ll stay fresh for hours. Make it hard to say no.

6. Feeling Test.  Always smile and be friendly. Try to leave your problems at home. After a while you will start to see the same faces over and over again. People will start talking to you like you are their friend. You will eventually remember their names and what they like.  In time youll become a popular concession stand where people like to go. And in time very wealthy too.

7. The Common Sense Test.  The worst enemy most people have is themselves. They become successful. They make a lot of money. They become greedy; they want more money. Some people start to cut corners, they look for cheaper inferior products as a means to increase their bottom line. Such irrational thought process eventually leads to their downfall. Instead of wasting valuable time figuring ways to short change the customer, they should be looking at ways to improve upon the product, add additional lines, improve the service and perhaps expand their business as well. Following this type of strategy is more apt to produce the desired results.

8. The Sense of Touch Test.  Or better coined, the sense of no touch test. You should never touch the food with your hands. Use your tongs, wax paper or foil wraps while handling food. And try not to touch food surfaces either. In some jurisdictions you will have to wear plastic gloves and adhere to other local Health Department rules and regulations. In some areas you will need a Commissary partner as well. The commissary is where you will prepare any food products, clean your utensils and perhaps store your vehicle.