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DID YOU RESCIND?

ASK QUESTIONS TONIGHT!

I am inundated with questions about TILA rescission. So continuing with the the last few shows I am going to allow more questions than usual tonight. The simple explanation is that TILA rescission is a creature of statute and it comes close to what we learned in law school about rescission but it isn’t the same. In fact, if you really look up the definition of rescission it doesn’t quite fit. But they called it that in the statute and frankly it comes close enough to what we know as rescission.

The biggest confusion was “do I have to give back the house to the bank?” And the answer was always NO — even under common law rescission that would never be the case because the transaction you are rescinding is a loan transaction and what must be returned in common law rescission of a loan is the money you received as a loan. You never received title to the house from the bank. You are not rescinding the purchase of the house. You are rescinding the loan transaction. Among the questions asked of me are the following:

1. If I sent a notice of rescission ten years ago, and the bank foreclosed anyway, do I still own the property?
2. If the “servicer” or “bank” ignored my notice of rescission, is that grounds to sue them for wrongful foreclosure?
3. Can I get my house back after foreclosure if I rescinded before foreclosure?
4. Can I rescind now after the sale of the property at auction?
5. Is there a statute of limitations on enforcing the effective date of rescission?
6. What is the effect on title if I gave notice of rescission before foreclosure?
7. How is TILA rescission different from other statutory or common law rights of rescission.
8. Does rescission stop the sale of the property?

Filed under: foreclosure |