Read this.
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.
2 comments:
Hi Diane,
My only experience has been a letter from Flagstar asserting that since they were forced to pay restitution because of INCORRECT disclosures we (as the title company) should pay them back. They threatened loss of their business if we did not do so.
I spent a couple of hours dissecting THEIR TIL (it was an after 5:00 closing where we had gotten loan docs the FIRST time at like 4:37 and then received a second and third set all before 5:00.
We accurately did the HUD and I replied to them (in a very long and detailed letter) that we are not responsible for the TIL, they are and I did not feel they had any right to ask us to repay them for restitution they were required to pay under TILA. I never heard from them again and we continue to close their loans.
Thanks, Anon. Very interesting that lenders seems to think title insurance should protect them against their own actions.
A couple of years ago I started adding this language as an exception in all commitments and policies:
"This commitment/policy excludes liability for loss or damages resulting from the Federal Truth-In-Lending Act, or similar laws."
YOI!
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