Facing Foreclosure: The Right of Recission Print E-mail
Chances are you have tried everything possible to make your mortgage payments, but may have fallen far behind and are now facing a foreclosure sale date on your property. You may have even tried a Loan Modification on your own and failed, as statistics show that without an attorney, and individuals chances of navigating the roadblocks to success are a dismal proposition since your lender does not have your best interests in mind,
One of the significant tools you may want to consider is the right of rescission .  Generally speaking, rescission is the right to cancel your mortgage contract and wipe it away completely due to violations in disclosures or proper procedures, more commonly referred to as Predatory Lending. While most homeowners may have the right to cancel for a myriad of reasons, you likely want to focus on the right of rescission under the Truth in Lending Act or TILA.  Truth in Lending requires certain disclosures prior to anyone borrowing money, specifically disclosures on the Annual Percentage rate or APR, the finance charges, the amount financed, the specifics of the terms of the loan like monthly payments and term. On a mortgage loan, the lender is required to disclose the terms up-front at a minimum of 24 hours before you receive your actual loan documents for signature. Failure to do so or discrepancies in what was disclosed compared to the actual loan terms would result in Predatory Lending violations. There are also other potential violations in State or Federal law that may occur with RESPA and TILA, and only a complete Forensic analysis of your loan documents.
Robert Scurrah, and attorney for ConsumerDebtAdvocate.net indicates his firm performs a complete Forensic Analysis and Fraud Report for every client prior to negotiating a restructuring of a clients loan. They use this report for leverage with the lender, and the client retains the option of rescinding the note and litigating with their lender.  If the client wins a rescission  case, they not only get what they owe on the property wiped away clean, but also may get damages that include every payment they ever made on the loan plus any fees associated with the loan back.   "We find multiple violations in about 90% of the loans we look at.  Unlike most companies which use a software program to analyze dates and interest rates, our analysts have 30 years of experience investigating loan fraud and are recognized experts by the court in Predatory Lending cases. As such, we go through all the loan documents and disclosures by hand and find multiple violations in both State and Federal law the software programs do not catch.  Any one of these violations is grounds for rescission."
If you are facing foreclosure or even heading down the road to it, the sooner you act and hire an attorney to try and modify your loan or take steps to prove Predatory Lending, the more likely your chances for success.  The right of rescission may be your best bet to save your home when all else fails, but you need to be armed with the information to have grounds to do so.  Waiting until it is too late to have the time to do something is the biggest mistake most consumers make. Being proactive is the best bet, so make sure if you hire an attorney to review your loan, verify how they analyze the documents and that they will actually provide you a copy of the report an that you can use it as evidence for a rescission.