Re: foreclosure
Posted by Dorene on February 19, 2008 at 05:35:36:
In Reply to: foreclosure posted by Ed Hadnott on January 29, 2008 at 14:36:51:
First lets talk about Truth in Lending; TILA’s purpose is achieved by promoting uniformity in credit documents. Typical terms and forms can confuse borrowers, leading them to agree to credit products that they might have rejected had they understood them properly. For that reason, TILA requires that many items of information be disclosed in specified ways.
If a lender does not disclose one such piece of information in the specified way, leaving the borrower to make assumptions, then TILA has been violated.
TILA provides a reduced margin of error for the lender even if they have poor math skills.
TILA makes it a fair playing field by giving the borrower an extended right to rescind of three years.
Underestimating the finance charge by more than $35 as evidenced on the final TIL when a NOD has been filed is another.
The statute is 15 U.S.C. 1635(i)(1), (2):
(i) Rescission rights in foreclosure
(1) In general
Notwithstanding section 1649 of this title, and subject to the time period provided in subsection (f) of this section, in addition to any other right of rescission available under this section for a transaction, after the initiation of any judicial or nonjudicial foreclosure process on the primary dwelling of an obligor securing an extension of credit, the obligor shall have a right to rescind the transaction equivalent to other rescission rights provided by this section, if—
(A) a mortgage broker fee is not included in the finance charge in accordance with the laws and regulations in effect at the time the consumer credit transaction was consummated; or
(B) the form of notice of rescission for the transaction is not the appropriate form of written notice published and adopted by the Board or a comparable written notice, and otherwise complied with all the requirements of this section regarding notice.
(2) Tolerance for disclosures
Notwithstanding section 1605 (f) of this title, and subject to the time period provided in subsection (f) of this section, for the purposes of exercising any rescission rights after the initiation of any judicial or nonjudicial foreclosure process on the principal dwelling of the obligor securing an extension of credit, the disclosure of the finance charge and other disclosures affected by any finance charge shall be treated as being accurate for purposes of this section if the amount disclosed as the finance charge does not vary from the actual finance charge by more than $35 or is greater than the amount required to be disclosed under this subchapter.
Info obtained from the broken credit blog.
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