Truth In Lending Act

[Brian K.]

Moe,

It was a pleasure speaking with you yesterday, thanks for taking the time. As we discussed, one of the most powerful weapons in forcing a lender into a loan modification, short sale, or forbearance is threatening them with a possible Truth in Lending Act (TILA) lawsuit. No lender wants to be facing a TILA case where the borrower/homeowner can rescind the entire mortgage and get back the payments they made for up to three years. The lenders know that even the tiniest violation by the bank is all that is needed to trigger this drastic remedy. That’s why it is the first thing I look for when I defend a foreclosure.

The first step is to discover weather there are any violations at all. I am willing to review a few cases for your members for free. By a few I don’t mean all. If we have some success then perhaps we can get a few more lawyers to help out. I will need the entire loan package (cover to cover) to do a complete review. Moreover, I would prefer people who are not on in foreclosure, but are somewhere between there third and fourth negotiator. I would also prefer families with younger kids who just should not have to deal with this. Think of this as my holiday present to a family who may loose there house for no good reason.

You have my contact information if you have any takers.

[Andrew]

now if you rescind a loan you would have to get another mortgage if you want to keep the house? Wouldnt that be hard for some people who have very low ltv?

[Moe Bedard]

Thanks Brian and I enjoyed speaking with you. It's nice to speak with a businessman who helps people in the course of their work and you are truly doing that as am I.

You have kids like me and there are many forum readers and members that are in the same boat. Kids are smart and the most definitely know what's going on, even thought they may not talk about it.

I look forward to developing a strategy where we can implement a nation wide defense campaign to protect America's Homeowners that do not qualify for the new HOPE Now plan and yes, the Truth in Lending Act will be a very powerful weapon in the fight.

Let's talk this weekend some more.

[Moe Bedard]

sswix - now if you rescind a loan you would have to get another mortgage if you want to keep the house? Wouldn't that be hard for some people who have very low ltv?

Yes, they would have to get a new loan to take the rescinded loans place. This is easier said then done because as you have mentioned, it would be very hard at low LTV's and upside down loans and no mortgage products.

However, as Brian mentioned we can use that to negotiate a loan modification with the lender and use the law a weapon to fight otherwise uncooperative servicers, who all of a sudden may change their tune.

[Brian K.]

The mortgage lender is then just another unsecured creditor, who must get in line behind everyone else who may have filed a lien on the property. Who ever files first (Credit card, auto finance, doctors, etc.) has first priority.

[Moe Bedard]

What do you mean, get behind? I thought since if they are in ST position, they will have ST shot before anyone.

[Andrew]

Moe or Brian do you know of any mortgage attorneys in the state of PA. I was looking at my settlement contract. Even the certfied one on countrywides site. They said they paid my taxes the yr i did refi, but they did not. Is that terms for rescind?

[Andrew]

oh and also the signature on that is not my wifes nor mine.

[Brian K.]

Payment of taxes is not part of TILA, but it could be a hell of a case against a closing agent!

[Moe Bedard]

Originally Posted by sswiz

oh and also the signature on that is not my wifes nor mine.

That is a HUGE issue and can be grounds for rescission. I do not know of a mortgage law attorney in PA. sswiz.

Maybe Brian can review your docs for free since you have been such a great help around here.

Let me speak with him.

[Andrew]

That one section of my documents in on countrywide's site I can download and email the pdf file. My wife and I just have been depressed lately especially since we just had the twins 6 months ago. I'm just worried about my house value. We did try to refi with eloan but fees just kept on pilling up after what we were told so we backed out. Our original appraisal wa 265k our loan was 221. The refi we tried with e-loan in October needed an appraisal of 274k but for some reason I think its way overapprisaed the same exact house with a crawl space has been listed for sale at 249k for about 7 months now, it was originally 289k. We have a partially finished basement. I also called countrywide again today to see if they actually received my tax verification from the county and no they havent. So I went ahead and faxed my canceled checks for the payments and the reciepts I received. But my negoitor is never around to talk lately. And the workout specialist I talked to was very nast with me. I asked about that bush proposal since I think we would qualify for that. But she told me that was just a stunt and isnt guaranteed and they wouldnt even look into it. I will call someone else monday there and see what they say.

[Moe Bedard]

Sswiz, OK. This BS is starting to really upset me. They have been running you in circles forever.

You have a right to be down emotionally. It's the holidays and you have been at this for what, 4 months now.

This Countrywide workout specialist told you that????? Arghhh.....

A stunt? I am going to start recording conversation to expose this crap. I suggest you start recording them also but per state laws.

Forgive me if I asked you this before, have you called 888-995-HOPE?

[Moe Bedard]

Sswiz, OK. This BS is starting to really upset me. They have been running you in circles forever.

You have a right to be down emotionally. It's the holidays and you have been at this for what, 4 months now.

This Countrywide workout specialist told you that????? Arghhh.....

A stunt? I am going to start recording conversation to expose this crap. I suggest you start recording them also but per state laws.

Forgive me if I asked you this before, have you called 888-995-HOPE?

[Andrew]

I actually have a pt job as a law-enforcment officer. It is against the law to record a conversation in Pa with out letting the person know. I tried letting them know once and was hung up on. Yeah its been 4 months. I havent called hope yet. I will call them monday and see what they have to say.

[Moe Bedard]

Yes, I am aware of wire tapping laws, but just like they say, "CountryWide is a debt collector and your call may be recorded, yada, yada, yada........"

We should all say the same thing. I have been thinking about doing massive conference calls, so people can actually listen is "legally" and also be potential witnesses if there is a law suit based on predatory servicing.

Yes, call hope and let us know if they give you any of that they are selling "HOPE"

[Andrew]

Moe,
I called hope and that was really pointless. They told me to call my mortgage company directly since im not late. WTF. This is becoming complete bs with countrywide.

[Moe Bedard]

News is out, do not call 888-995-HOPE for Hope Now because they can't give it to you.

Sswiz, do you fit in the guidelines of the Hope Now program?

[Andrew]

yes i do fit the guidelines but they said that the bush thing isnt really anything. And its up to lender no the government.

[Moe Bedard]

OK, would you like to collaborate with me on a cynical plot to expose this BS?

[Brian K.]

sswiz,

Why don’t you send me you closing package. I will review it and give you my opinion as to the various TILA, RESPA and HOEPA violations I find if any. The only catch is that you have to share the responses that your lender gives you after you move to rescind the loan.

Just send me private email to get my address.

[Andrew]

Yes I would. I figured out to get to tape them without really asking their permission. As long as you have a beep throughout your conversation your covered.

[Andrew]

Ok. Some good news today. I deceided to call countrywide and tell them i sent my loan documents to an attorney for review to see if their are any violations. And no sooner that i said that. They said based on all the information I have in front of me. You are prime candidate for a loan modification. You meet all the criteria. They also told me who my investor was. It is Bank of NY. They also went on and said they received my property taxes and since bank of NY is an inhouse investor it would be real easy to modify my loan and to Call back next tuesday for some results.

[JacMac]

That's great news!!!!! Yeah.

This time I just really hope their not blowing smoke up your ass. If that's the case (and we're not even going to think like that) then maybe you SHOULD run that by an attorney?

Maybe that's why they changed their tune so quickly?

Maybe something is wrong with the papers?

I'm not trying to rain on your parade (this is phenomenal news). In my situation hindsight was 20/20, and I want you to turn over every stone.

In other words, don't sleep on CW.

[Brian K.]

sswiz,

After reviewing a part of your docs, it appears that they in fact they over calculated your APR. This could affect your maximum interest rate in the loan as it adjusts. I have also pulled to LIBOR history and it appears that it was incorrectly applied in your loan. After a full review I will know more, but it looks promising. My opinion letter may be just what you need (along with a demand for revocation) to get your lender to seriously resolve your case.

Additionally, I found the way that lending tree was being paid troubling. It appears that they received a fee for a referral of a loan (a RESPA no no). I will dig a little deeper into that issue and let you know.

[Moe Bedard]

Good news sswiz, but don't let them get off so easy. Brian may have some ammo that may help you get a sweeter deal than if you just do it on your own. But, continue to see what they say and also for guidance from Brian.

JacMac, maybe we can review your docs also as a test and see if we can start using this as a tools to stick it to these lenders.