Rescind Your Mortgage Loan and Save Your Home From Foreclosure!

October 16th, 2008 | by admin |

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The current mortgage crisis has brought about increased awareness of mortgage loans fraught with errors that could allow homeowners to completely rescind their mortgage loan, including those homeowners facing foreclosure.

Violations of the Truth in Lending Act (Regulation Z) have proven to be very effective defenses for homeowners currently facing the prospect of a mortgage loan foreclosure, literally stopped the foreclosure action from continuing forward, once the findings of violations of either HOEPA or Truth in Lending have been found.

Improper calculations of finance charges directly related to the Truth in Lending statement of (TIL) have been found in over 80% of mortgage loans originated by banks and mortgage lenders over the last 5 years, creating huge liability for banks and mortgage lenders to refund ALL of the finance charges and other loan costs associated with the mortgage loan. In addition, the mortgage loan itself could be completely rescinded, leaving a ZERO mortgage balance owed by the homeowner!

However, it does not end there. Violations of both Regulation Z (Truth in Lending) could yield additional penalties to the bank or mortgage lender, including:

*Requiring the bank or mortgage lender to refund ALL sums paid over the life of the mortgage loan

*Reimbursement of all court costs and legal fees

*Triple damages may be awarded to the homeowner if litigated in court.

The violations of Truth in Lending are quite severe, as many of our nation’s top banks and mortgage-lending companies are finding. For the tens of thousands of homeowners who fell victim to Predatory Lending by unscrupulous mortgage brokers and loan officers, this news could not have come at a better time.

For a mortgage loan to be considered rescind able under Federal law, a borrower must demonstrate:

*The mortgage loan was secured by a principal dwelling of the person for whom the credit was extended.

*The loan was not used to purchase an existing home or construct a new home.

*The mortgage loan was a refinance of a previous loan either: 1) held by a different mortgage lender than the original lender, or 2) the borrower refinanced with the original lender and took cash out of the subject property.

*The loan was closed less than three (3) years ago.

*AND one of the following applies:

-The loan is currently in foreclosure and any mortgage broker fee was not included in the finance charge

-The loan is currently in foreclosure and the finance charge was understated by more than $35

-A material disclosure was not provided to the borrower, including the disclosure of the correct:

*APR (Annual Percentage Rate)

*Finance Charge

*Total of Payments

*Payment Schedule

*Existence of a variable rate feature, if applicable.

*Information with respect to the notice of Right to Rescind.

-The loan is not in foreclosure AND the finance charge exceeds .50% of the mortgage loan amount or $100, whichever is greater.

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Information Links

· National Foreclosure Information

· Promissory Note Discovery

· Rescind Your Mortgage

· Truth In Lending Act - PDF

· Mortgage Forgiveness Debt Relief

· Foreclosure Dismissal

· RESPA ACT - Loan Regulations

· Free Credit Repair Information

· Foreclosure Workshops

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· Foundation Counselor Team

· Foreclosure Counseling Assistance

· Foreclosure Prevention Act of 2008