Time to play defense...affirmatively

 Posted on January 23, 2012 in Foreclosure

There are several affirmative defense that can be raised against a foreclosure action. One such affirmative defense that can be raised is for a violation of the Truth in Lending Act or TILA. The Truth in Lending Act is part of the United States Code: 15 U.S.C. Section 1601 et seq. as well as Regulation Z of 226 etseq.

Three of the numerous possible affirmative defenses for violations of TILA are:

1. The amount financed by the lender needs to be clearly stated and itemized in a real estate closing. Further, for consumer residential closings, banks are required to follow TILA when a consumer credit transaction involves a lien or security interest being placed in a principal dwelling or primary residence. If these requirements are not followed, the homeowner may be entitled to rescind the transaction.

2. There is an affirmative defense based on TILA if the lender fails to clearly and accurately state and disclose the number, amounts and timing of the payments scheduled to repay the loan or obligation.

3. The lender is required to deliver to the defendant or homeowner 2 copies of the notice of the right to rescind and any other related statutory disclosures. An affirmative defense may exist if the lender failed to do so.

If you feel as though your lender may have violated one of the above or are interested in a review of your case to see if you may have one of the above defenses, please contact an attorney.