Note got pulled for random audit!

[Austin S.]

My father purchased a note about a year ago. We just got notice from our servicer that we are out of compliance. I will try and explain the situation.

1) It was a land contract that was originated in 2011
2) There is language in the contract that states after 24 probationary payments, the seller would quit claim the property to the buyer and then record a mortgage and note.
3) This apparently never got done.

So my questions are many at this point. I talked with the servicer and they of course couldn't give me any advice as they are not legal experts. He thought though that we may have to find an originator in Oregon to draw up new loan documents and all, which then makes me think we will have to comply with Dodd-Frank and all the ability-to-repay requirements. I have so many questions I am not even sure where to start or how to ask. Can anybody point me in the right direction?