Never Received Nor Signed 3 day letter at closing

[thegoat]

I refinanced a second home condo in Florida 12/07. According to my closing documents, a 3 day letter of recission was a requirement to close. I even contacted the title company and they closed on 12/14 and funded the loan on 12/17.

I have contacted title company for a copy and they dont have it. I called WAMU on 2 or 3 occassions and they dont see it either. I just spoke to a WAMU rep on the phone and she told me that they are not required to keep a copy of this past the 3 days, presuming that since I did not request a recission, they don't need to keep the document...that doesn't make any sense.

I asked her why the bank doesn't keep a copy in the archives in case, someone like myself, states they never received it. She said that it's not necessary.

Nobody has it and it was required to close on closing addendum.

Im considering short sale but property has PMI and I need all of the legal negotiating tools possible to achieve this.

Who's right? Who's wrong? Are they in violation?...Please help I'm desparate. Thanks!

[faith]

Welcome to this forum,
You can go to the County Recorder's 0ffice in your state and get a copy of that loan documents, they might charge you for a copy probably $5-$10 a copy. Or you can use their computer, ask them how to use it. They have instructions in the computer how to use it and search for a loan documents submitted by a lender or mortgage company.

When my original lender suddenly sold my mortgage to CW without telling us and not giving us the copy of the loan documents, I went to County Recorder's office and check the computer which has no charged and found out the information I've wanted to see..

Federal statutes require pre-closing disclosure of estimated loan terms, pre-closing disclosure of actual loan terms for high-rate and high-fee €mortgage loans, and notice when changes are made from the terms applied for by the borrower. • State statutes and common law prohibit fraud, deceit, and misrepresentation in loan transactions.

The Truth in Lending Act (TILA) sets out detailed disclosure requirements that govern virtually all consumer credit transactions, with the goal of promoting informed consumer choice. The Real Estate Settlement Practices Act (RESPA)6 dictates procedures and forms for residential real estate closings to make clear to borrowers the true costs of buying and refinancing. Complementary provisions of TILA and RESPA require lenders to provide ‘‘good faith estimates’’ of both loan terms and costs early in the mortgage process. Clearly, Congress had the bait-and switch problem on its mind. However, neither law has prevented problems or provided much relief for unsuspecting and unsophisticated consumers
.
TILA requires a good faith estimate of its required disclosures, including annual percentage rate, finance charges, payments schedule, and more, also within three business days of submission of a mortgage loan application. However, the requirement applies only to purchase money mortgages. REFINANCES, WHERE MANY OF THE WORST PRACTICES APPEAR, ARE NOT COVERED. Further, court decisions give lenders great leeway in their ‘‘good faith’’ estimating and have not applied TILA to prohibit abuses. One analyst has concluded that, far from protecting consumers, the loose requirement for good faith estimates ‘‘creates a federally structured opportunity for lenders to use bait-and-switch consummation tactics.’’

Congress however is unlikely to pass comprehensive legislation that deals with predatory lending. They will probably make a show of some sort of legislative fix, but legislation is not the answer — self control and common sense are needed on the part of the buyers/borrowers. At closing, subprime borrowers are often presented with terms that do not match those previously offered, and then pressured into signing documents they have not had time to review.” TAKE THE TIME to read the contract — if it sounds too good to be true, it probably is, if you don’t fully understand it — DON’T SIGN! If there is pressure to sign —THAT’S A RED FLAG. DON’T! “

Here is the link about Short Sale outposts.

Short Sale Outpost - Loan Modification Forum - LoanSafe.org

[thegoat]

Faith,

Thanks you for your reply!

I do see where you have REFINANCES highlighted as not a requirement for 3 day letter.

According to my loan documents, the closing addendum, amongst other requirements, clearly states "3 day letter of recission is required".

Also, I saw somewhere that refinance money is amongst those financed products that require this letter.

Why would it clearly show as a requirement, yet no one knows anything about it?

Thanks,
Goat

[faith]

TheGoat,
When signing loan documents an employee or notary public of the Title company is the one responsible doing this job. That Notary Public will not inform you of the terms of the loan and will not discuss with you about this loan because if they do and the homeowner's back out, they will not be paid their fees which ranges from $125 to $400 per loan documents and they will be sued by the bank. When they enter the room they will say hi and good bye, here's the loan documents, read it, sign it and if you have questions you have 3 days to think about it and excuse herself out of the room and come back to get the loan documents signed and notarized. You'll be lucky if they ask you to raise your right hand with the bible and ask you if are telling the truth or not. Most homeowners do not read the documents nor pay attention after the 3 days rescission, I was one of them. I wished I did but it's too late now, my house is already sold and thank God that I don't have to worry about mortgage payments.

The reason why it is important for us buyers/homeowners to read the documents before signing it and see if we are being pressured in signing the documents is due to fraud scheme done by lenders, servicers, title company called Mortgage Bait and Switch. This scheme will tell homeowners one thing say that your interest is 5% but when they mailed you your documents or you get the copy of the documents it is different from the ones you've thought you signed and now you're in trouble. That's why it's important to review before signing it, reject it or do not sign it if you feel you are being defrauded..

If you were not given the disclosures to which you were entitled, including a written statement of your right to rescind, you have three years to rescind instead of three days. The disclosures to which you are entitled include most of the items on the Truth in Lending statement. This is a possible avenue of redress for those who require a little time before they realize they have been abused.

Here's the link that you need to read regarding this matter.

The Mortgage Professor

Hope this helps.

[Marshall Rosenbach Esq.]

the goat - yes, on a refinance loan, you must receive 2 copies of the notice of right to cancel. this rule does not apply in purchase loan situations. To get a copy of your loan docs, you can also request them as a "qualified written request" under RESPA from the servicer of your loan. The reality is that, unless you have equity in your home, you are probably not going to be able to rescind the loan (even if your 3 day period to rescind is extended to 3 years). That is because when one rescinds, the bank does have to give you back the costs of the loan, including the interest you've paid to date, but you have to give back to the bank the money you borrowed. This is not practical for most people because almost everyone is upside down, and therefore, is unable to tender the money owed to the bank. However, the TILA violation (failing to give the required 3 day notices) can be used as leverage to help you get a loan modification with your bank. This is what I would try to do if I were you. Alternatively, if you want to leave and do a short sale, make sure the paperwork provides that the bank is accepting the short sale proceeds in satisfaction of the mortgage and note/debt...not just the mortgage...otherwise, you will owe the bank the deficiency (the difference between the amount of the loan and the sale price at foreclosure).