Here's a Cool One - Mortgage Rescission

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IrvineCitizen_IHB

New member
Saw an interesting one today and decided to do a little research online.



If you refinanced your home in the past three years and had an auditor discover Truth-In-Lending-Act (TILA) violations on your mortgage papers you can file a Rescission and immediately stop dead the foreclosure process.



One online example listed things as simple as $6000 discrepancies in closing costs that would immediately void the contract. Rate changes also count.



With so much crap going on behind the scenes with all these shady mortgages and fly-by-night companies you would think we'd see tons of these.



So basically what you do is stop making payments for three months, get a NOD, stop making payments for 3 more months, get a Notice of Trustee Sale, stop making payments for another couple months and before the auction file a Rescission and the whole process needs to restart.



If I understand it correctly, if there were violations in your refinance you basically can live rent-free, property-tax-free, home-insurance-free, and HOA-free for around 18 months.



Please tell me I have misunderstood this!



At some point I gotta stop paying my mortgage, if for no other reason for the simple fact that I can!
 
[quote author="IrvineCitizen" date=1244955903]Saw an interesting one today and decided to do a little research online.



If you refinanced your home in the past three years and had an auditor discover Truth-In-Lending-Act (TILA) violations on your mortgage papers you can file a Rescission and immediately stop dead the foreclosure process.



One online example listed things as simple as $6000 discrepancies in closing costs that would immediately void the contract. Rate changes also count.



With so much crap going on behind the scenes with all these shady mortgages and fly-by-night companies you would think we'd see tons of these.



So basically what you do is stop making payments for three months, get a NOD, stop making payments for 3 more months, get a Notice of Trustee Sale, stop making payments for another couple months and before the auction file a Rescission and the whole process needs to restart.



If I understand it correctly, if there were violations in your refinance you basically can live rent-free, property-tax-free, home-insurance-free, and HOA-free for around 18 months.



Please tell me I have misunderstood this!



At some point I gotta stop paying my mortgage, if for no other reason for the simple fact that I can!</blockquote>
if it were that easy we would all have a free home. i have spoken in depth about this with two attornies. it is a great little story but in reality i does not work. IMO every loan funded in the last 4 years has a RESPA or TILA violation.
 
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