Why Lenders Have No Legal Standing Against TILA Rescission

Not legal advice, for informational purposes only.

TILA rescission is effective by optional law, the moment it is sent to the lender.

So, what does all this really mean for mortgage loan contracts?

Once a letter to rescind and cancel a mortgage loan contract is sent, an event has occurred that can’t be easily undone. So to undo the event requires a Judgment against the event that occurred.

TILA Rescission

Usually, the mortgage lender will just send a letter to the homeowner, stating that the TILA rescission is rejected as untimely and denied.

However, the Supreme Court of the United States ruled that TILA rescission is a nonjudicial remedy by operational law in Jesinoski v. Countrywide Home Loans, Inc., 135 S. Ct. 790 (2015).

So just because the lender rejects and denies a TILA rescission, it does not make it so… When the Supreme Court of the United States ruled that TILA rescission is a nonjudicial remedy by operational law.

This is why TILA is referred to as operational law.

What is a TILA??

The Truth in Lending Act (TILA) is a federal law passed in 1968 to ensure that consumers are treated fairly by businesses in the lending marketplace and are informed about the true cost of credit. … It does require lenders to disclose information about all charges and fees associated with a loan.

In Mortgage Cancellation Secrets Forms, it’s detailed how-to identify fraud disclosures that occurred to rescind and cancel a mortgage loan contract.

To challenge a TILA rescission will also require that a mortgage lender must have standing.

Fraud is a deliberate misstatement of a material fact. Misrepresentation is a bonafide representation of misstatement believing it to be true which turns out to be untrue.

Loans sold on Wall Street (which are most mortgages) are in violations of TILA at loan origination and most homeowners don’t know this…The original mortgage lender proclaims to be the creditor funding the mortgage loan contract.

There is a specific TILA violation that asserts that a Promissory Note can’t extend beyond nine months period. So when a mortgage loan is 30 years (like 99% of most mortgages) this is a deliberate misstatement of a material fact for who is actually funding the mortgage loan. An act of fraud where the original lender can’t be the true creditor funding the mortgage loan contract…because the mortgage loan contract is extending beyond nine months. That’s considered a  deliberate misstatement of a material fact!

So it’s essentially a bait and switch when an Assignment Transfer comes into play. Such as a bonafide representation of misstatement believing it to be true which turns out to be untrue. A misrepresentation that one party was the true creditor and lender that was not.

This is the primary reason why lenders will never challenge TILA rescission in court. The lender would need to have standing as the Plaintiff to challenge the TILA rescission.

Upon receiving a TILA rescission the lender has only 20 days to act. The options are to comply by canceling the security instrument (voiding it entirely, no debt owed) and returning all payment made including the down payment. To oppose TILA rescission the lender has exactly 20 days to seek declarative relief against the operational law.

How can the lender oppose TILA rescission if there is no standing to do so?

To oppose TILA rescission the lender must have standing…That would mean that the lender is the Real Party In Interest…Lenders never ever really appear in court regarding foreclosure or TILA rescission issues. Lenders generally send a Robo Plaintiff, their attorney as their fact witness. Which is not possible but most homeowners and even foreclosure defense lawyers don’t know to raise this issue…Where the lender is not actually appearing but sending a Robo Plaintiff (their attorney and law firm) representing them.

The lender must be the true beneficiary, like say a true holder in due course. This would require not using a Robo Beneficiary also. Which is typically what most lenders will do…To have the standing to oppose TILA rescission will require that the lender as the Plaintiff is a truly injured party.

How could the lender be the truly injured party from the TILA rescission, when the loan documents were in TILA violations where the promissory note extended beyond nine months??

This would mean that all the loan closing documents must contain a legitimate transaction…

Order Mortgage Cancellation Secrets Forms, hurry limited time offer! 

Tiny Little $79 Forms Could Cancel Your Entire Mortgage Loan

These tiny little $79 forms hold the dirty big secrets of Wall Street, that could cancel your entire mortgage loan!

How is this NOT a Scam and not too good to be true?

First off, the secrets exposed inside the forms is ALL public knowledge, it just that most homeowners don’t know how to access the information or how to use it.

Tiny Little $79 Forms

Right now you can order the Wall Street Cancellation Secrets Forms for only $79 for a limited time. In seconds you can gain access to insider knowledge that mortgage lenders have been trying to keep secret for years.

It all started with a $10 book sold on Amazon, giving details into “Wall Street Mortgage Cancellation Secrets” offering powerful techniques to rescind and cancel mortgages.  Hidden secrets “What Smart Rich People Don’t Tell and Big Banks Will Steal To Not Let You Know” about foreclosures and mortgage loans.

These are battle-tested and proven strategies used by foreclosure defense attorneys, mortgage loan auditors, forensic audit specialists, and more.

Fraud vitiates all contracts, written or verbal, sealed or unsealed. Offering discovery evidence to reset the clock after the required three-year statute of limitation enforcement for fraudulent lack of full disclosures.

DIY Rescind and Cancel Mortgage Forms with easy instructional preparation. There is no fluff. This is so simple to use and understand. Mortgage Cancellation Secrets provide forms and knowledge to help you:

  • Rescind and Cancel Mortgage Loan Contracts
  • Discovery TILA Fraud Violations
  • Obtain Complete Mortgage Loan Documents and Payment History
  • Get A Favorable Principal Reduction Workout
  • Discover Strong Loan Modification Advantages
  • Identify If A Mortgage Lender In A Foreclosure Is The Current Owner With Authority To Foreclose
  • Bonus:  Rescind and Cancellation Notice Demand Non-Compliance Federal Violations (Form to use should the lender not comply to Rescind and Cancellation notice demand).
  • Extra Value Bonus: All instructional preparation forms are updated ongoing for current statutes. *Only if you request a refund this service will be automatically canceled.

Hurry to act fast order your Wall Street Cancellation Secrets Forms for only $79 !

How-to Rescind and Cancel Your Mortgage Loan Permanently

Would you love to learn how-to Rescind and Cancel your mortgage loan permanently?? 

Forcing your mortgage lender to work with you, getting the upper hand? 

If you ever been denied a loan modification or upside down, owe more than your home is worth right now or even facing foreclosure…this is for you!

Yes, these techniques really can work and 100% legal to use at your own risk…This is not legal advice, for informational purposes only. 

How-to Rescind and Cancel

Lately, I have been traveling around the country with my team and training lawyers and real estate investors on these simple techniques…It all started from a short book I wrote that became a bestseller in Amazon and Barnes & Noble! 

Homeowners around the country started reporting amazing results…

Foreclosures Cancelled!

Tender, Short Pay Offers Accepted! 

Mortgage Deeds Cancelled Permanently!!! 

Learning how-to spot Truth in Lending Act (TILA) violations is the key to rescind and cancel mortgage deeds permanently for fraudulent disclosures…

Go download Mortgage Cancellation Secrets Forms

How is this possible ??

The Supreme Court issued its ruling in Jesinoski v. Countrywide Home Loans, Inc., 135 S. Ct. 790 (2015).

What if the three-year statute of limitations to rescind and cancel has expired???

Well, that’s why you need to get educated…I simplified my 10 years experience with expertise in Wall Street mortgage-backed securities and over 16 years of experience as a former full-time mortgage broker, creating a DIY foolproof system that works! 

Revealing simple techniques to apply TILA violations for fraudulent disclosures to essentially reset the statute of limitations where fraud is involved. 

True, a normal TILA violation without fraud would typically need to be made within 3 years…If you learn how-to discover issues of fraud in violation of TILA, you have a new opportunity! 

Go download Mortgage Cancellation Secrets Forms

Still need more proof??

Truth in Lending Act (TILA) under section 1635 (Go look it up!!) gives the lender exactly 20 days to 1) Return Every Payment A Borrower Ever Made! 2) Cancel The Security Instrument! 

1 and 2 must be done within 20 days!

If the lender wants to contest the Rescind and Cancellation, the lender still has only 20 days to do so by filing a lawsuit within the exact timeframe and only after following steps 1 and 2 first before going to court. 

That’s right, even to contest a Rescind and Cancellation, TILA requires that the lender must file a lawsuit within 20 days. However, the lender will first need to follow steps 1 and 2!!!! 

Exactly within 20 days 1) Return Every Payment A Borrower Ever Made! 2) Cancel The Security Instrument! 

You can get the forms to do these simple techniques yourself right now today for a special low rate offer… 

Hurry! Go download Mortgage Cancellation Secrets Forms

Bravo To Tenth Circuit About TILA Preclusion Claims

(Not legal advice or a legal opinion. For Informational proposes only). Bravo to the U.S. Court of Appeals for the Tenth Circuit on rejecting the federal Truth in Lending Act (TILA) on claim preclusion issues. This should be a quick wake up call for all homeowners facing foreclosures and foreclosure defense attorneys…Go get educated about proper TILA violations for fraud! 

TILA Violations must always be as strong as an argument. Which is why finding fraud is fundamental to have a successful argument to rescind and cancel a mortgage loan for TILA Violations. 

A primary and very common issue in most foreclosure defenses is the inadequate failure to conduct discovery research. If true discovery research was happening, more foreclosure disputes could be resolved through win-win resolutions. 

TILA Preclusion Claims

Firstly, we wish to express our sympathy for the Pohl family and their fight to challenge a foreclosure on their home. The U.S. Court of Appeals ruled against the homeowners even after they obtained counsel from their own ProSe representation in their August 2014 complaint, having amended the complaint on eight claims through legal representation. 

After looking over this entire matter, one could draw conclusions that the Truth in Lending Act (TILA) claims asserted by the Pohls was also missing fraudulent discovery. That they likely didn’t know about and was never revealed to them that fraud could have also been involved. Such as “New Discovery” of evidence (wink)…Where their only reasons to rescind and cancel their mortgage was because “TILA-required disclosures” so they delivered a notice of intent to rescind for disclosure violations and strictly nothing else. 

In the mix of all this, the Pohls initiated two lawsuits and a bankruptcy (filing BK in 2011 seeking protection from foreclosure). They started a Quiet Title Action in 2012 to attack the 2011 foreclosure proceedings. 

Not pertaining to the Pohls, as we have never interviewed them or know their specific situation. Where many homeowners fighting foreclosures get comfortable with being able to escape making monthly mortgage payments and living mortgage-rent free in a sense for several years. So they delay declarative judgment relief defenses in rescission matters. Raising issues of default under TILA violations have a specific statute of limitation timelines.  

The Pohls in their Quiet Title Action in 2012 never raised TILA rescission issues to be challenged. They made a TILA rescission argument in 2012 that they “had tendered a valid instrument in payment of the note, which the trustee also had rejected.”

What the Pohls were arguing supports, UCC §3-603; “If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender…”

Maybe it wasn’t known to them that under 15 U.S.C. § 1635(b); Reg. Z §§ 226.15(d)(1), 226.23(d)(1) once the borrower properly sends notice to Rescind and Cancel, the security interest is void by operational law.

Requiring next a deadline to challenge the rescission by under Regulation Z for 15 U.S.C. § 1625(b) within 20 days after receiving the rescission notice. 

So as such any enforceable security interest asserted would be void (not correctable by voidable) and a cloud on title to be made null and void to free and clear from all the world. 

Not going too much deeper as their 2014 complaint, even with being amended by an attorney representing them was found to be lacking key essentials. The Tenth Circuit explained: “For a claim in a second judicial proceeding to be precluded by a previous judgment, there must exist: (1) finality of the first judgment, (2) identity of subject matter, (3) identity of claims for relief, and (4) identity or privity between parties to the actions.” 

So it appears as if the Pohls really had no final Order to attack and no subject matter jurisdiction to rule judicially…Without a final judgment Order to attack, any subject matter jurisdiction would be lacking for being void to rule on judicially. 

Issues On Preclusion

The Tenth Circuit asserted the Trustee; “had commenced the foreclosure proceedings in 2011, well before the 2012 state litigation.”

Collateral estoppel (CE), known in modern terminology as issue preclusion, is a common law estoppel doctrine that prevents a person from relitigating an issue. This is what the Tenth Circuit basically ruled that the Pohls did and barred their TILA rescission.

For this reason, discovery is very necessary to uncover new issues of fraud. 

One summary is that, “once a court has decided an issue of fact or law necessary to its judgment, that decision … preclude relitigation of the issue in a suit on a different cause of action involving a party to the first case”. The rationale behind issue preclusion is the prevention of legal harassment and the prevention of abuse of judicial resources.

Make sure that your TILA violations for fraud discovery address the right issues. Make sure that your TILA violations can detail what fraudulent discovery grants a specific right to rescind and cancel the mortgage loan. 

Hurry, go access our Mortgage Cancellation Secrets Forms right now!

What Happens After Rescinding A Mortgage Loan

(This information is intended for informational proposes only and not legal advice). Once a borrower notifies the mortgage lender of their right to rescind and cancel the mortgage loan, it is officially void by no court order needed only proper notice by official letter. So what happens next after this process has everything to do with becoming educated on how-to properly resolve a mortgage conflict resolution. 

Who can exactly rescind and cancel a mortgage loan contract?

It might surprise many people to learn that currently under The Truth in Lending Act (TILA), anyone with security interest in a property has a right to rescind and cancel the mortgage loan contract!

For the purpose of MortgageCancellationSecrets.com we focus on TILA fraud violations to rescind and cancel mortgage loan contracts for homeowners under distress. So, in other words any homeowner denied a loan modification, facing foreclosure, upside down mortgage – owe more than the property is worth, etc. This is where they would come to learn about how-to discover TILA fraud violations to actually rescind and cancel mortgage loan contracts.

After Rescinding A Mortgage Loan

When the Rescind and Cancellation of a mortgage is in effect the lender has 20 days to give up security interest in the property and pay back all money ever paid by the homeowner.

This is the best time to attempt to resolve the conflict resolution between the lender and the homeowner. 

What if the three year statute of limitations has expired to rescind?

When fraud is involved this vitiates the mortgage loan contract. To rescind and cancel a mortgage loan after three years will also require identifying fraudulent disclosures.

Fraud vitiates all contracts, written or verbal, sealed or unsealed. Offering discovery evidence to reset the clock after the required three year statute of limitation enforcement for fraudulent lack of full disclosures.

TILA still requires that borrowers must also be prepared to Tender once they rescind and cancel their mortgage loan contracts. However, the statute right now is very clear that in “twenty days” the lender must first return all payments made by the borrower and even release the security instrument such as Deed of Trust, Security Deed or Mortgage before Tender is required to be made.

A homeowner (borrower) must understand, that before tender of the loan proceeds to the lender is required. The loan is cancelled at the moment notice is given. Which requires the lender to FIRST return all payments and terminate its security interest within 20 days, before Tender is to be made by the homeowner (borrower)! The borrower then must tender the loan proceeds to the lender only AFTER the lender returns all payments and terminate “VOID” its security interest. This puts the homeowner (borrower) in a better financial position to Tender the loan amount after receiving all payments made and the property back FREE AND CLEAR any lien from the lender.

This process further creates a bigger problem for lenders seeking to foreclose on borrowers. Those borrowers facing foreclosure, who have properly notified the lender to rescind and cancel their mortgage loans attack the enforceable security interest of the property.

To foreclose the lender must have enforceable security interest, this has nothing to do with produce the note. That strategy is dead.

Enforceable security interest requires that the lender has a right to enforce the security interest to foreclose. Which is strictly required in every state by law, no matter if the foreclosure process  is non-judicial or judicial.

For a lender to contest a Rescission Notice received from a borrower to Rescind and Cancel, the lender must also follow strict procedures. If the lender opposes the borrower’s right to rescind and cancel the lender must send a letter to the borrower stating the reasons why and object to the rescind in the letter.

Most homeowners facing foreclosures think that this notice clears the lender and gives the lender a right to proceed with foreclosure after sending a notice of objection to the Rescind and Cancel notice received by letter.

This is why homeowners facing foreclosures and their foreclosure defense attorneys must get educated. The borrower has a right to assert rescission as an affirmative defense to challenge a foreclosure or by and through declaratory judgment (relief) to halt or void a foreclosure sale.

After the homeowner rescinds the mortgage they also have 1 year to file for declarative relief

Under 15 U.S.C. § 1635(b); Reg. Z §§ 226.15(d)(1), 226.23(d)(1) once the borrower properly sends notice to Rescind and Cancel, the security interest is void by operational law.

What homeowners facing foreclosures and foreclosure defense attorneys need to know is that “security interest is void” upon the proper rescind and cancel notice. Regulation Z is also very clear, the security interest is void and of no legal effect upon rescinding and cancel notice. Should the lender make an objection to the borrower’s rescind and cancel notice, Regulation Z dictates that the security interest is void by operational law.

Regulation Z is further very clear that by through now 15 U.S.C. § 1625(b) that IF a lender wishes to dispute a borrower’s right to rescind and cancel, a declaratory judgment action must be filed within 20 days after receiving the rescission notice. This would be the urgent deadline to return all payments made by the borrower and void the security interest.

The biggest problem is that many homeowners and even foreclosure defense attorneys don’t properly know how-to rescind and cancel their mortgage loans for TILA fraud violations. This must be done correctly and by strict statute.

Homeowners must properly rescind and cancel a mortgage loan. This is why we created DIY Rescind and Cancel Mortgage Forms with easy instructional preparation. The information contained in these forms are battle tested and proven strategies used by foreclosure defense attorneys, mortgage loan auditors, forensic audit specialists, and more.