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Truth in Lending Question

Posted on: 24th Aug, 2009 06:35 am
Our bank modified our balloon note in November. We have had some problems because they back dated the loan to October and we are disagreeing on the first payment date. The other problem we are having is the the loan documents have both my husband and I signing but on the Truth in Lending Statement only my husband was told to sign, my mortgage broker said this is a violation of the Truth in Lending Act because I did not sign even though I signed the loan documents. Is this true?
i have to agree with what your broker said, Mom. what it means in the long run, quite possibly, is that your loan will still be valid, but that the lender will need to go through the re-disclosure process for you.

i know you began your story on another thread, but i don't recall if you mentioned having had rescission rights (right to cancel). please address that here, if you recall. my understanding is this: if you had rescission rights on that transaction, then the improper disclosure gives you new rescission rights.

what this means is that you could cancel the most recent transaction. that might be good for you, and it might be bad for you - you have to decide that, and i'd think it wise to engage an attorney for additional help with that.

in the short run, however, this could work to your advantage in that your due date situation may be corrected. and i still think that their "back-dating" of documents opens them up to a whole array of other problems. this is yet another reason for you to have legal counsel in this situation. be certain that whatever attorney you engage will have substantial expertise in real estate/finance.
Posted on: 24th Aug, 2009 07:38 am
I don't know if I have rescission rights. It was a Modification/Renewal/Extension with the bank. They did back date the documents, we never received a copy of the documents we had to sign, and they refused to give me the loan documents but claimed my husband had to call in to get them, even the the loan documents say the loan is between the bank and my husband and I.
Posted on: 24th Aug, 2009 07:46 am
you need a lawyer to get on this situation.
Posted on: 24th Aug, 2009 07:53 am
Thank you, we will do that. We just needed to know what our rights were because of them putting the late payment on our credit report and refusing to answer any questions.
Posted on: 24th Aug, 2009 08:29 am
Hi Guest!

Welcome to forums!

The lender has the right to put the late payment on your credit report. However, the lender cannot refuse to answer your queries. If he refuses to answer your queries, you can consult an attorney and let him deal with your lender.

Feel free to ask if you've further queries.

Sussane
Posted on: 25th Aug, 2009 01:10 am
sussane, i certainly agree with your stance that the lender cannot ignore a customer's queries. however, i have to make this statement: if a lender, or its representative more appropriately, cannot answer a query in a reasonable fashion, it would not surprise me to find that the customer will receive a made-up answer meant to placate that customer.

now mind you, i didn't say they'd lie, but there are far more ways to skirt the truth than simply lying, and i know "customer service" people do that constantly, in (probably) every industry.
Posted on: 25th Aug, 2009 07:43 am
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