Posted at 12:33h in Foreclosure Defense, Mortgage Issues, Mortgage Issues In Bankruptcy, RESPA 0 Comments
Here are six arguments to stop a foreclosure:
1. The Truth In Lending Act (four states have their own approved versions; in MA it is the Consumer Credit Cost Disclosure Act) allows for rescission, if there are defective disclosure. Rescission requires repayment of the principal amount borrowed, less all payments made. In the old days, maybe two years ago, one could refinance and make this tender payment obligation. Not so anymore, with declining home values.Following rescission, a Chapter 13 bankruptcy filing might allow payment of a small dividend for this tender obligation, instead of a 100% tender repayment. This argument has won at the MA bankruptcy court level but has not been successful in Maine, Puerto Rico, and elsewhere.