Just when we thought we heard everything there is to know about mortgages, there is more. We find that even minor problems with paperwork can help the consumer ask for a "rescission," a loan cancellation found in the Truth In Lending Act. It requires full disclosure of all the important (they should all be important) terms of a mortgage. So, if you believe that your payment is higher then was told to you or other discrepencies, you may be able to renegotiate your rate or get a rescission.
Of course, a homeowner still owes the principal amount of the mortgage but the lender will not be able to foreclose. And the related fees and interest that were paid are subtracted from the principal. Then you can apply for a new mortgage. Find lawyers with this type of experience at www.naca.net.
For more information read today's Wall Street Journal article titled, "How Snafus Can Upend A Mortgage."
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