The Truth in Lending Act (TILA) is a federal statute that is intended to protect borrowers and consumers against unscrupulous or dishonest lending practices. This law requires lenders to be honest in disclosing all the details of a loan, which also allows borrowers to easily compare rates between lenders.
At the Law Offices of Kenny Tan, we are concerned with protecting borrowers' homes and financial interests using TILA. Many of our clients are facing tough financial times or foreclosure proceedings, and we can help provide a valuable defense by examining our clients' loan documents.
Provisions of the Truth in Lending Act
that can stop foreclosure or allow loan modification
Under the Truth in Lending Act, a bank or other lender must make certain disclosures to borrowers before they sign loan documents. Lenders must honestly disclose:
- Amount of loan and payment amounts
- Prepayment penalties
- Due dates and late charges
- Annual percentage rate (APR) for mortgage
- Service or application fees
If a lender fails to make a full disclosure, we can use this violation to assert the right of our client to rescind the loan. Discovery of a TILA violation must occur within three years, and any violation results in the lender being forced to cancel the deed of trust against the property, which makes a lender's right to foreclose evaporate.
If you discover the TILA violation within a year of signing the loan documents, you also may be able to recover damages in a lawsuit. If your credit was damaged by late payments, attorney Kenny Tan can help you recover your credit, but this right is dependent on uncovering a TILA violation within one year.
If your lender violated the Truth in Lending Act, we can stop foreclosure.
You may be facing foreclosure because of a defaulted sub-prime loan or late mortgage payments. To protect yourself, check your loan document right away for one, easy-to-spot TILA violation: If your lender failed to write in an expiration date of your "notice of right to cancel" on your loan document, this is a TILA violation.
In certain cases, homeowners may be entitled to damages for mortgage fraud on the part of their real estate agents, possibly in addition to recourse under TILA.
Contact real estate lawyer Kenny Tan to learn more about your rights under the Truth in Lending Act and what defense you might have against foreclosure. Using TILA, we may be able to help you stop the foreclosure of your home, secure a loan modification, restore your credit, or recover damages.
