Foreclosure Defense: Right of Rescission
If you refinanced your home in the last three years, you may have a powerful
defense if you are now facing
foreclosure. Under the federal Truth in Lending Act (TILA), you could have grounds
to rescind the transaction if the lender failed to comply with the letter
of the law. The most common blunder is failing to provide borrowers with
two copies of the notice of right to rescind.
If your refinancing or mortgage loan was invalid, your subsequent loan
default is likewise invalid, which in turn interrupts foreclosure. The
experienced Chicago foreclosure defense lawyers of
Sulaiman Law Group, LTD, have successfully challenged foreclosures by invoking the right of rescission.
We will vigorously assert every affirmative defense to help you save your home.
Contact us today online or by telephone our Oak Brook law office at 312-313-1613
to speak with an experienced mortgage law attorney.
Holding Lenders Accountable for TILA Compliance
You surely remember the blizzard of paperwork and all the hoops you had
to jump through when you bought or refinanced your house. Pay stubs, tax
returns, proof of citizenship. Explain this. Verify that. Resubmit such
and such. Sign here, here, here ... and here.
The Truth in Lending Act (TILA) turns the microscope back on the lenders.
TILA mandates specific information that must be disclosed and documents
that must be provided. The law requires that lenders provide two copies
of the right to cancel (one for each spouse or co-debtor). Under TILA,
a borrower has three years to rescind the transaction if two right to
rescind notices were not provided at closing. Moreover, the borrower may
be entitled to monetary damages.
A common scenario: The husband obtains refinance credit under his name,
but his wife has an interest in the property. The lender provides him
with the right to cancel documents, yet does not provide a second set to her.
The whole intent of the Truth in Lending Act was to protect borrowers from
deceitful practices, hidden fees and sloppy paperwork rampant in the mortgage
lending industry. The 7th U.S. Circuit Court of Appeals has upheld a "hypertechnicality"
interpretation of the TILA requirements, giving the benefit of the doubt
to borrowers who enter mortgage transactions in good faith.
Invoking a right to rescission claim under TILA within the three-year window can:
- Stop foreclosure, at least temporarily
- Enable borrowers to walk away from a bad mortgage
- Result in an award of statutory damages
- Force lenders to engage in a workout or new loan
Explore Your Defenses - Illinois Foreclosure Defense Attorneys
We examine all grounds for challenging a foreclosure, including
defective mortgages, TILA violations,
lack of standing and other strategies. In short, we will fight for you and vigorously enforce
your rights in a process stacked against borrowers.
our attorneys have been recognized as "Rising Stars" in Illinois Super Lawyers
magazine, based on legal acumen and consistently favorable results for
clients. We represent distressed homeowners, including many high earners,
across the Chicagoland area.
E-mail us today or call 312-313-1613 to discuss your options to save your home or
escape from an underwater mortgage.