This is STILL one of the BEST outlines of the act of Rescission that I have seen in the THOUSANDS of them I have read.
I URGE you, IF you loan is under three years old, INVESTIGATE THIS OPTION. This is probably the EASIEST, most DIRECT way to get remedy for you loan. There is no "downside" to rescinding, you simply need to be able to TENDER THE LOAN. KEY FACT: you don't need to tender the ENTIRE LOAN. You need to tender the REASONABLE VALUE OF THE HOME. BIG DIFFERENCE THESE DAYS.
Look into it, because it's an amazing remedy. YES, I feel you will need an attorney after you do it to help you enforce it, because 98% of the time the servicer either ignores it or says they aren't going to honor it (THEY DON'T HAVE THAT OPTION!!!)
You do NOT need to tell them WHY you are rescinding
You do NOT need to explain anything
You do NOT have to be current on your mortgage
You simply send the letter saying you wish to rescind and STOP making payments, and the ball is then squarely in your lenders' court. They have TWO clear LEGAL responses to your rescission:
1. Obey the law and RESCIND your mortgage within 20 days (at which time you will have to tender it)
2. File a COURT DOCUMENT protesting the rescission explaining that they are initiating judicial review of your loan to protest your rescission. This is FILED IN COURT and you will be notified. They almost NEVER do this, but it's what they are supposed to do if they want to fight it.
That's it. THOSE are their only TWO options.