What Is A Rescission Of Acceleration Of Loan Maturity?

TXWilly

LoanSafe Member
#1
It has been a long battle with Chase and 4+ years now after no communications from them for the past 10 months or so, But today I received a letter with the heading 'Rescission of Acceleration of Loan Maturity'.

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This letter is forma notice of the following:

Mortgagee under the Deed of Trust referenced below hereby rescinds the notice of acceleration dated xx/xx/xxxx and all prior notice of accelerations. This Rescission of Acceleration does not waive or suspend the rights or claims of Mortgagee, its successor or assigns, to accelerate and collect in the future the debt owned and borrowed by the Borrower. Mortgagee has appointed the undersigned as its authorized agent to execute this instrument on its behalf for the purposes herein stated.

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1. What is the meaning of this letter/statement? I saw some posts that indicates that the bank is giving up the right to come after me?

2. What happens to the court records? Will they be removed (liens)?

3. The above statement also states that I still owe the debt?

4. The last payment made on my loan is well beyond the SOL 4 years and above.

Thanks for your time and answers in advance.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#2
Hello,

Based on my understanding, they stop or rescind calling the loan due and pursuing foreclosure. This is normally done when there is some type of loan workout such as a mortgage modification being negotiated, or possibly they do not have a signed copy of the mortgage note and no legal right to foreclose. This also could be for the holidays if you had sale date during this time because many lenders are putting moratoriums on foreclosures. Do you know if Chase owns the loan?

Unfortunately, I highly doubt that the liens will be ever removed and you will still owe the debt. I have never seen anyone get a free house. They will most likely just file some paperwork in the coming months and proceed forward.
 

TXWilly

LoanSafe Member
#3
Thanks a lot Moe.

My loan is from wamu to Chase. or that is what I believe. My original DOT is from WAMU and me. And there was no assignment of Wamu to Chase recorded in court records. Also they committed robosign/fraud and I have been putting pressure on them thru various sources on these issues. So if there is no assignment of WAMU to Chase they donot have the note?

I didnot understand your first statement. They are going to try foreclosure again? IF they did this will be 3rd time. My loan modification was under process and it was kept as it is for 10 months and no communications except today the letter I explained above.

IF the SOL is already expired, can they still come for the loan? I am not trying to get the home free. I did everything in the process to get the loan modified and whenever I had a job. But if the SOL is expired; it is more than 4 years and 8 months since the last payment made. SOL in Texas is 4 years. So my question on SOL.

Also what is the moratorium on foreclosures? How I find info on that and how it is applicable to me?

(I had posted my story in other posts earlier).
 

TXWilly

LoanSafe Member
#4
I also found another explanation on web.
http://www.answers.com/Q/What_is_a_Notice_of_rescission_of_acceleration_of_loan_maturity

Answer by Mark Swarthout
An attorney working in contract management.

A "Notice of Rescission" is the right of an individual involved within a contract to return to the identical state as before they entered into the agreement, due to courts not recognizing the contract as legally binding.

Therefor, a "Notice of Rescission of Acceleration" would be a case where the interested party (presumably a mortgage company or lender) has ceased pursuing another entity or individual regarding payment acceleration for reasons which could be complicated in a court or in an effort to avoid going to court. An example, a lender provides a home owner with a mortgage and the homeowner, after a few years, can no longer pay the full amount on a monthly basis. The mortgage company pursues acceleration of the loan while the homeowner pursues getting the mortgage restructured. Restructuring gets finalized before the foreclosure is complete, so it becomes in the best interest of the mortgage company to rescind the matter of foreclosure through a "Rescission of Acceleration" and allow the homeowner to continue payment on the mortgage at the reduced interest rate.


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Can Moe/Anyone can comment on the above?
Thanks
 

Annie Mac

LoanSafe Member
#5
TxWilly, By the time we are done with this, we will be able to write an entirely new dictionary of Chase Terminology, words and phrases which Chase has made up to define themselves or what they are doing. While I am not an attorney, it seems clear that they are communicating to you that the direction they had been taking is now frozen and done. (And of course, we believe everything they have written to us, right?)
What next? That latest letter received on another post, Chase defined themselves as the "attorney-in-fact" for the FDIC. We have watched everything tried so far, and I would imagine, Chase is busy in a backroom drumming up a new thing to call themselves in your case, which would allow them to bypass the federal regulations, the robo-signing, the judges in your state, to serve themselves. Maybe, you will be lucky.
You have put up a good resistance. Possibly our files are getting in the way of new adventures and derivatives for Chase. I hope they have just tired of your resistance, and there are bigger games to play.
 

chasegame

LoanSafe Member
#6
TxWilly, I'm not an attorney either (thank the good Lord for that!) but my take is Chase is just regrouping for now and will return at a later date. I think I am correct though, that if the SOL has indeed expired, Chase may not be able to sue you to collect on the debt- but they can still foreclose on the note.
 

TXWilly

LoanSafe Member
#7
TxWilly, I'm not an attorney either (thank the good Lord for that!) but my take is Chase is just regrouping for now and will return at a later date. I think I am correct though, that if the SOL has indeed expired, Chase may not be able to sue you to collect on the debt- but they can still foreclose on the note.
Thanks for your reply. Can you explain that they can still foreclose on the note? Is it really possible? If the SOL is expired how can the still Foreclose on Note? Is note (assume it is Promissory Note for the mortgage)? It is a written contract and the SOL is applicable to written contracts too.

I would appreciate your explanation...
 

TXWilly

LoanSafe Member
#8
I found this info in this link:
http://www.nolo.com/legal-encyclopedia/the-statute-limitations-foreclosure-actions.html

If there is a significant time lapse between when you stop making mortgage payments and when the lender initiates a foreclosure, the foreclosure might violate the statute of limitations. If this happens, you can use this as a defense to the foreclosure. Read on to learn what a statute of limitations is and how it can be used to protect you from foreclosure.

To learn about foreclosure, the events leading up to it, and typical foreclosure procedures, see our Foreclosure Basics topic.

What is a Statute of Limitations?
A statute of limitations sets the time limit for bringing a legal claim, like initiating a foreclosure action. If the case is filed after a certain date, it is not valid and can be dismissed. The time limit varies depending on the type of action or claim that is involved. There are different statutes of limitations for oral contracts, written contracts, personal injury, and fraud. (Get more information about the statute of limitations.)

Determining the Statute of Limitations in Your State
Generally, the statute of limitations that is relevant to home foreclosures is the one for written contracts. However, some states (for example, New Jersey) have a specific statute of limitations for foreclosure.

Each state has its own statute of limitations, which ranges from three years to 15 years. Most states fall within the three to six year range. To determine the statute of limitations in your state, look in your state’s statutes. These are often available online at your state’s legislature webpage. (To learn how to check your state statutes, visit Nolo's Laws and Legal Research Center. You can find your state's statute of limitations for written contracts in our Chart: Statutes of Limitations in All 50 States.)

When Does the Clock Start Running for the Statute of Limitations?
The statute of limitations clock for a mortgage foreclosure usually starts when the default occurred. (The “default” is when you stopped making mortgage payments.) It is usually calculated from the date of the last payment.

To learn more, see When Does the Clock Start Ticking for the Statute of Limitations?

Stopping a Foreclosure
If the foreclosure starts foreclosure proceedings after the statute of limitations has expired, the lender’s claim is invalid and the lender is not entitled to foreclose.

The Statute of Limitations Is an Affirmative Defense
The statute of limitations is an affirmative defense to foreclosure. This means it is the homeowner's duty to raise the issue in the foreclosure. If the homeowner does not raise the statute of limitations defense, then the defense is waived and the lender can continue with the foreclosure.

What If the Statute of Limitations Runs Out During the Foreclosure?
If the statute of limitations runs out during the foreclosure, then it is not a defense to the foreclosure. This means that even if a foreclosure takes years to complete, which often occurs in some states like New York where the average foreclosure takes about three years, it is not a defense to the foreclosure.

Example. Say your lender files a foreclosure lawsuit in June 2012, but the statute of limitations runs out in December 2012 while the foreclosure is pending. In this scenario, a statute of limitations defense is not available. To be in compliance with a statute of limitations, the lender only needs to start the foreclosure before the time limit expires.

(the following may be applicable in my case as they are stopping the foreclosure action? for example let us assume my last payment was made in June 2010, they have to initiate foreclosure before june 2014. If not the SOL applies and they cannot foreclose anymore)
What If the Lender Cancels or Dismisses the Foreclosure?
If the lender stops the foreclosure action, which often happens if the lender discovers a procedural error, and then refiles the case, the homeowner can use the statute of limitations defense. If the lender restarts the case, it must do so within the time period provided by the statute of limitations.

Example. In the example above, if the lender dismisses the foreclosure in October 2012, the lender would need to restart the foreclosure prior to December 2012 to meet the statute of limitations. However, if the homeowner were to you make a payment in the interim, this will usually reset the statute of limitations.


The Statute of Limitations in the Current Real Estate Market
Most lenders currently have a backlog of delinquent loans for which they have not yet filed foreclosure actions. It may be months or even years between the time that the borrower stops making payments and the lender initiates the foreclosure process. This means that it's important for borrowers to be aware of the statute of limitations for their particular state. It may become a valid defense in a foreclosure action


by: Amy Loftsgordon, Contributing Editor
 

chasegame

LoanSafe Member
#9
The scenario I was referring to and didn't articulate clearly was when the foreclosure was initiated (but not completed) by the lender before SOL expired. Another area to research is- If they cannot sue now or foreclose now to collect on the mortgage, isn't it true that the debt remains against the property regardless? So if the property is sold 15 yrs from now Chase gets their money then?
 

TXWilly

LoanSafe Member
#10
The scenario I was referring to and didn't articulate clearly was when the foreclosure was initiated (but not completed) by the lender before SOL expired. Another area to research is- If they cannot sue now or foreclose now to collect on the mortgage, isn't it true that the debt remains against the property regardless? So if the property is sold 15 yrs from now Chase gets their money then?
I am not sure it will be like that. I Need to do more research on this. I was reading something about 'Quiet Title' which clears any claims on the home/property and puts back the ownership to the person who files 'Quiet Title'. Also read that if one occupies the property and pays taxes for 6 or more years, he could claim it by filing a 'Quiet Title' law suit and it will be sent to the previous owners/lien holders who can oppose if they have a valid claim (in this case they may not as the SOL is expired).
 

Annie Mac

LoanSafe Member
#12
Out in the Far West, Quiet Titles seemed to be used mainly for clearing up issues on range lands, boundary disputes, etc. Some in the legal field dismiss them entirely as having no teeth. It does seem to vary quite a bit, but Texas, also having had great range lands, might deem them valid.
We have gone down the road of the shredded or burned notes, the violations of servicing codes, so trying to collect the debt of a contract which has passed the statute of limitations, throws it into the arena of how many times Chase has been paid on the securitization of that contract?
It seems common knowledge that the DOT of most of us Wamu/Chase folks has been securitized a minimum of five to six times the value of the note. I really doubt Chase wants that issue being highlighted in a judicial setting.
How many of us are there, Wamu/Chase people who are past or nearing statute of limitations? As the years go by, I have seen it all come and go, and even on this site, people have walked away from houses as well as Loansafe. Seems it would be easier to cut us loose and be rid of us, because we are just running around in circles, and I am glad TxWilly, that you are also holding on.
 

TXWilly

LoanSafe Member
#13
Some more info on SOL and Time Barred Mortgage.
http://www.avvo.com/legal-answers/is-there-a-time-limit-the-banks-have-to-foreclose--640802.html

The statute of limitations is 5 years. Therefore, once it is more than five years after the date of default, an action against you is time-barred. That does not mean however that the purported creditor will not try to do something, it is a frequent problem that debt collectors take action to collect time-barred debts, and that the debtors, not realizing they have this defense, waive it.

In addition, if there never was a completed foreclosure, you still own the house, and so are entitled to use it, to rent it, to live in it, and once the statute of limitations runs, if no new action has been commenced to foreclose or to collect, you can bring an Action to Quiet Title to remove the lien from the property. If successful, you would then own it free and clear. However, this is not something you would be able to do yourself, and you could do a great deal of harm if not done correctly.
 

Annie Mac

LoanSafe Member
#14
This article from TxWilly's post above, refers to Florida, where the SOL is five years, in Texas, it is four years, and in Oregon, it is six years. Each state varies in SOL on written contracts. There is some new information in that posting though, the reference to a letter of acceleration starting the SOL clock; this is the first I have heard of this.
 

TXWilly

LoanSafe Member
#15
Annie Mac:
I understand the SOL varies for different states. Ya, I saw that discussion on SOL starting whether from last payment made or date of notice of Default/intent to accelerate/foreclose.

Mine has passed the SOL on both aspects. So they cannot come after me since the SOL is expired. As per the 'Rescission of Acceleration' it means they stop the ongoing foreclosure process.

I am not sure why Chase dragged this modification so long, whether they have NO right to foreclose or they donot have proper note/assignments to modify the loans and hoping the homeowner will give up the house when tired if fighting?

Another question is if they never modified the loan so far in my case, what if they modify now and ask me to start paying? Can I deny by citing the SOL expiration?
 

Annie Mac

LoanSafe Member
#16
TxWilly, I am glad to be having this discussion, since the experience is thin as most folks have gone a different path and there are not that many of us stubborn enough or foolish enough to keep at it this long. The basic statutes in each state are simple enough, but the variables are complicated, and I have had plenty of starts and stops in the long dragged out Chase drama. That is why the clause about stopping the acceleration is notable to me. There are a couple of posts on livinglies which address these topics:

http://livinglies.wordpress.com/201...offense-and-it-is-a-highly-effective-lawsuit/

http://livinglies.wordpress.com/2014/07/07/quiet-title-and-statute-of-limitations/

http://livinglies.wordpress.com/201...anything-consider-the-statute-of-limitations/

This whole thing is so state-specific that it seems one needs to really check with local people to make sure there isn't an exception to the statute, or a new revision added.

As for why Chase has dragged this out; there is nothing logical about anything they do or say. They do not know what to do with us, and they do not know what the people in their own department are doing, much less those on the floor above them, or three states away in another department. Nothing is resolved for me yet, however, I have been getting some unusual communications from Chase, which leads me to believe they are just trying different types of bait and bobbers to see if I will bite.
 

Annie Mac

LoanSafe Member
#17
Suddenly, this is a hot topic. Today, two more entries, also on living lies, which address this very topic of statute of limitations and acceleration:

http://livinglies.wordpress.com/201...decides-statute-of-limitations-deutsch-loses/

http://livinglies.wordpress.com/201...rd-dca-opinion-on-the-statute-of-limitations/

"If the original party had no right to collect or enforce, then the notice of default and notice of acceleration are void."

These postings are in relation to the recent decision out of Florida, so we know each state is going to be different in interpretation, but there are probably more people in this boat than we realize.
 

TXWilly

LoanSafe Member
#18
Annie Mac:

Thanks for the links. I really appreciate it.

When it says >>> "If the original party had no right to collect or enforce, then the notice of default and notice of acceleration are void." >>>

>>>

Does this mean if the bank give 'notice of rescission of acceleration' bcz they realized they cannot do it, they cannot file new acceleration down the line /later?


--
Also there is an interesting info in one of your links:
the only subsequent cause of action which Deutsche Bank could file under the circumstances was an action on the accelerated debt— it could not thereafter sue upon an alleged “new” default because, without reinstating the installment terms of the repayment of the debt, there were no “new” payments due, [e.s.]

Without a new payment due, there could be no new default, and therefore no new cause of action. Because the Current Action was based upon the very same accelerated debt as the Initial Action, and because that Current Action was filed after the expiration of the five-year statute of limitations, it was barred.5

>>>

So if I understand the statements correctly, they banks lose the right to re-file acceleration/notice of default if they failed/reversed their action earlier and the re-filing is occurring after SOL expiry?
 

Annie Mac

LoanSafe Member
#19
Boy TxWilly, I am not the person to answer that question. I invite anyone else to chime in. When I ran across those newest links on SOL and acceleration, I had just spent quite a bit of time reading and researching the statutes in my state, for when then SOL starts, the exceptions to the timeframe, the difference between property and debt, etc. So, by the time I was reading these Florida threads, it was clear how different things are worded and interpreted in another state.
One of the statutes I came across (Oregon 12.040)
"In a suit upon a new promise, fraud, or mistake, the limitation shall only be deemed to commence from the making of a new promise or the discovery of the new fraud or mistake."
That could spin either way in its interpretation. For example, Chase has maintained for a long time to be successor-in-interest to Wamu as of September 25,2008. Declaring the fraud began on that day, shifts responsibility for what came before in the origination, which Chase has been trying to wiggle out of, while picking up the spoils. That sentence though, is the very same topic which you quoted, which limited Deutsche Bank in Florida because the five year SOL was up. In Oregon, the SOL is six years, but there is a parallel, in they cannot go back to the original "promise" it seems, after the SOL is up.
What I brought away from the research yesterday, is what one reads from another state is just for examples and ideas; there is no way it can be assumed to apply in another state. It is only the specific language in one's own state that one can refer to. It appears that this is an area with a lot of latitude in regional differences.
 

Annie Mac

LoanSafe Member
#20
Minutes after I posted the above, I read the latest posting from Isisis on Bagels at a Bar Mitzvah....excellent quote, which sums this up in tidy language.