TIL, RESPA and Right to Recission Violations??

[ManicMangaManiac]

Hi everyone,

I was going over my loan papers in preparation for a meeting with an attorney tomorrow afternoon, and realized that I have only ONE copy of my Right to Cancel document, and it is unsigned. Also, I noticed a discrepancy in the interest rate between the loan papers I got from the title company, and those I received from Option One after I closed... the papers from the title company show an 8.25% interest rate, while those from Option One state the interest rate is more than 9 percent. Does the discrepancy constitute violations of TIL and/or RESPA laws?

What violations have to have happened in order to rescind the loan within the 3 year period? I know that once the loan is rescinded, it then becomes an unsecured loan and that generally the borrower has to get a new loan for the balance within 60 days. What if there are OTHER creditors in line ahead of my lender? In that case, the lender cannot take any action to collect the balance or foreclose on me, correct? If that is the case, then the lender is not able to collect after the statute of limitations has expired, correct? The statute of limitations in Kansas is 5 years for written contracts and promissory notes, and 3 years for open accounts (there's a table of statute of limitations online, covering every state: (URL removed for outside advertising)

Thanks for answering my questions!

Sally

[Mary Salzer]

In cases of violation of Reg Z, TIL and RESPA the docs have to be reviewed by a qualified professional that can determine just what and who violated the Regs. At that point it has to be determined if it is in the interest of the borrower to rescind or modify the lien for certainly more manageable results. There is no second guessing the issues reflected in the file, it has to be a qualified review, preformed by a qualified professional.

The title company data is not the lender data and has no bearing on the issues of Reg Z, TIL or RESPA and would not be something that could cause rescission to be effected.

All in all you need to retain an attorney to answer all of the questions that you have outlined, the state law is one portion of the equation and the Federal Law is truly the one with teeth. All of the questions that you are asking need to be addressed by an attorney and a specific review of the file for the violations and then analyzed for the option (s) that best suit your case.

[mreedlaw]

Please point out everything you just told us to your attorney tomorrow (for example, Right of rescission - you received one unsigned copy - you should have received two). From what you described, there may be potential TIL and RESPA violations for you and your attorney to explore pursuing. That being said, and without actually looking at the documents that you have, there may be other rational explanations for the discrepancy. There is often a final TIL and an estimated TIL in the closing package - there may also a GFE in the loan package.

You would be surprised how many prelim docs that the broker is supposed to give you well before settlement, do not arrive until the date of settlement and signed as part of the loan package (this is ocassionally accompanied by a broker calling the title company and telling the settlement agent to have the borrower sign these sets of docs - "but do not date them").

Good luck with the attorney tomorrow - put a post-it flag by all the docs that raise eyebrows, thanks - Michael

[ManicMangaManiac]

Thanks, guys!

Could you also answer my other questions about what if I have other creditors in line ahead of my lender after the recission and so on?

As for the attorney himself.. he's probably the absolutely best one I could ever have found as he's the former Kansas Attorney General who, as county DA, prosecuted and won convictions in several high-profile murder cases-- a very tenacious bulldog. He resigned last month as Atty Gen because of some indiscretions with a female colleague while he was the DA.

Now he's in private practice, and when I called him last week, he expressed interest in doing a class action against Option One and H&R Block. Of course I will point out all the glaring problems in my loan to him. Wish me luck -- I hope he agrees to represent me!

Sally

[Cat Damiano]

Sally,
Those are also questions best handled by the atty tomorrow....
Good Luck!!!

[mreedlaw]

That's right - I remember you writing about him the other day - Hmm. so how did you find out about the reason for his resigning - I am sure I would not put something like that on a billboard or bsuiness care ... but the way you described him it does sound like he is a good attorney. Good luck, Michael

[Mary Salzer]

We can not answer those questions as we can not provide legal advice on this forum we are not qualified and certainly can not risk the forum's position in this community that we want to go forward to serve.

[backlso]

Hello,
I just read your post. Your situation is very similar to mine. Not signed the 3days right-to-cancel, discrepencis, and also another lien infront of the bank. I did hire an attorney, he turned out to be useless. I would love to hear your story updated!
Thanks and I hope it has worjed out for you.
Sofia