Loan Rescission and TILA Violations
I recently started a blog post about TILA Violations and what these violations can mean for the financial institutions. This is a BIG can of worms for them because a large percentage of home loans were funded in violation of the federal TILA statute and its implementing regulations found in Regulation Z.
In short, if a TILA violation is found within 3 years of closing on a refinance transaction of the borrower’s primary residence, the debtor/borrower can “rescind the loan.” By serving notice to the lender of the debtor’s action to rescind the loan, the lender has “20 days to return all finance charges, downpayment monies, etc.” to the borrower and must also “remove all security interests on the property” in 20 days.
If the lender fails to do so, it is in violation of TILA requirements, mainly 15 USC §1635 and, according to paragraph “b” of this section, there are some huge implications for both debtor and creditor if the creditor does not comply with these requirements.
Here’s a sample case that you can read as evidence of how powerful this remedy can be: Belini v. WAMU
Call or email me if you want help pursuing a TILA violation against you. These are cases for attorneys to take up and we have an extensive network of attorneys that we can help you get in touch with.
Category: Court Cases, Foreclosure Defense Research, General, Homeowner Resources, Truth in Lending
I’ve been researching this for a very long time. Finally some good news involving this. Where do you handle these cases?
Robert,
I handle loan audits in all 50 states and work with attorneys and the clients in whatever state they live in.
Not sure if this was your question, but please feel free to email or call me if you have any other questions.
Lane Houk
lane@thepatriotswar.com
(800) 985-4685 ext. 2
Lane,
Great site and keep up the fight. This is a good blog going at http://maineloanmodifications.wordpress.com I found.
Can you riddle me this?
They served me Summary Judgment based on an Affidavit from some mystery AVP who claimed to have the Note in possession but have provided no documentation. I used the help of a Non Profit attorney and answered with a great Reply and Denial of all of the facts included an Affidavit that I never signed at Note to Countrywide (it was to America’s Wholesale Lender) and the Note was never endorsed or they haven’t produced proof of such. They lack standing as a matter of law and are not the injured party.
I thought they would just go away, but instead filed for a Motion to Enlarge time to file and I opposed and filed a Motion to Dismiss. Its been over a year since the original Complaint, where I answered in denial and filed Discovery motions with the court for all of the pertinant info (loan servicing, chain of title evidence…etc) but they ultimiatly refused based on client privilege.
My question: What could they possibly produce at this point to gain a judgment? Could they actually cook up a fake note(assuming the original is lost).
Thanks again if you can give me your best guess based on your experiences.
I know federal law allows up to 3 years. does this time clock start when loan docs are signed OR when a borrower finds that there has been violation.
Can a bank cancel a contract if, the dealership lied about the down payment? I also signed 2 auto security contracts, on two different dates?
can this be done after the foreclosure sale has occurred, but before the deed is recorded?