Did your loan officer or "closer" really follow the federal guidelines? If not, you might be able to cancel your mortgage. If you cancel your mortgage, they can't foreclose. It might not lead to anything but if it's your house you are trying to save, it's worth having an attorney take a peek at your paperwork. Isn't it?
Talk this over with your attorney if you think you might have a case. If you are successful, you might have to repay the principal but could you recoup the interest, closing costs and fees? At the very least you may be able to delay the foreclosure process OR gain the upper hand in renegotiating mortgage terms.
I am very interested in the comments of others. Has anyone out there been directly involved in a TILA case like this?
This looks like a good link. Here's another good link. And another.