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Rescind Your Mortgage Loan and Save Your Home From Foreclosure!

For people potentially facing foreclosure, check out this blog. See if the information can help you in fighting your potential foreclosure proceedings. You may also want to sign up with Pre-Paid Legal / Identity Theft Shield service as well, and utilize this information with the attorney that would be assigned to your case. This can be done for less than $30 a month - less than $1 day!

Via Mike Sikorski,MBA,GRI:

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 In addition, the mortgage loan itself could be completely rescinded, leaving a ZERO mortgage balance owed by the homeowner!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 rescindable 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 on e 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.

Homeowners interested in having their mortgage loan documents reviewed for Truth in Lending errors should contact an experienced and qualified Mortgage Loan Auditor to see if your mortgage loan has violations of the Truth in Lending law. After that, you should contact a qualified Consumer Law attorney experienced in dealing with Federal lending laws.

Mike Sikorski, MBA, GRI

Licensed Real Estate Broker

Licensed Mortgage Broker

Loss Mitigation Specialist

Florida Realty Network LLC

22079 Kimble Avenue

Port Charlotte, Florida 33952

(941) 206-6000

Mike@FloridaRealty.net

Posted by Ronald Gillis, CNSA Southwest Florida Notaries, Port Charlotte, 941-7-NOTARY on 09/16/2008 12:46 PM

Comments (5)

FORECLOSURE HELP in the Mortgage / Finance Channel

foreclosure, foreclosure assistance, foreclosure prevention

Originally posted at: Ronald's Blog - Southwest Florida Notaries, Port Charlotte FL (941-7-NOTARY) Serving all of SW Florida: Rescind Your Mortgage Loan and Save Your Home From Foreclosure!

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5 Comments on Rescind Your Mortgage Loan and Save Your Home From Foreclosure!

SEP

2008

Thanks for pointing this out, Ronald! Too bad such a large proportion of the problem mortgages at present are purchase loans, or there's be a good chance for those borrowers to get some help.

Dan

SEP

2008

Thanks Ron! I will pass this information along.

This is good information for consumers. We will see more of it as lawyers will look for errors .

Dan, it is unfortunate, but there IS help out there! Denise, as always, your welcome! Gita, unfortunately, but yes, I am sure attorneys are making out well with these!