More details to this question:
When I got behind on my mortgage payments, my bank must have checked their paperwork. When they discovered that that they did not have TILA paperwork including a notice of right of rescission, they hired another company to send me backdated paperwork and told me to sign it. They wanted it to appear as if the notice was sent when my heloc limit was increased two years before. Can I sue them or use this in my foreclosure defense?
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You can, but you need an attorney to do so. Truth In Lending Act defenses are very complicated and are unlikely to be handled properly even by an attorney with no experiance with them.
Answered on Jan 31st, 2013 at 2:19 PM
You may be able to utilize a TILA claim if it is within the applicable statute of limitations. A TILA violation, on its own, may not serve to stop a foreclosure. However, you may have other potential claims. A full review of your title history, mortgage, and closing documents would be necessary to determine if a claim or defense is valid. Accordingly, I feel you need to contact an experienced consumer protection attorney to review your documents and provide you with sound legal advice.
Answered on Jan 29th, 2013 at 8:20 PM
You may have defenses if the paperwork was filled out incorrectly. The problem with TILA generally is that you can reverse the transaction only if you pay back the money. That is not a helpful remedy in 99.99% of situations. But, the lender can't properly foreclose if it can't prove that it has the correct paperwork in its possession and that any notes were properly assigned. If the lender forecloses, demand mediation and make sure that the lender brings all of the paperwork. I always require that the lender proves that all assignments (transfers from one mortgage company to another) are properly signed. Many times they have not been done properly and the lenders will not foreclose. But, you need to point it out to them. At a foreclosure mediation, the lender must send the documents and a person with authority to modify the loan. Many lenders are now resorting to filing lawsuit to foreclose loans, but you can bring up the same defenses. A good foreclosure defense lawyer can help you.
Answered on Jan 29th, 2013 at 7:37 PM