New comment on your post #214 “Glossary: Mortgage Meltdown and Foreclosure”
Comment: A question on TILA and Non-judicial Foreclosure for anyone who knows the answer; Does a rescission letter that is timely and certifiably mailed to all appropriate parties (lender, assignee, servicer, trustee) prevent/nullify a pending non-judicial foreclosure sale? Would appreciate any information that may help find that answer.
Complicated answer: technically speaking the purchase money first mortgage is exempted from TILA rescission but is still available under little FTC and common law fraud. This exemption was carved out after exhaustive lobbying by lenders.
The actual answer to your question is MAYBE. It depends upon the auctioneer’s assessment, but if you let everyone know at the auction that they are buying into a lawsuit our experience shows that generally speaking nobody bids — not even the lender.
Now if you accompany your letetr with the TILA audit…
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