The Truth in Lending Act (TILA) gives home loan borrowers a three-day right to rescind, or cancel, a loan transaction. For these first three days, this right is unconditional, without any caveats. After the three days run out, there is a catch; the borrower has the right to rescind only if the lender has failed to satisfy TILA’s disclosure requirements. Even if the required disclosures are never made, the right of rescission will expire after three years; thus, straying from the pack.
If you are not familiar with it, during each episode a panel of celebrities would try to correctly identify a contestant with a special talent. The contestant was mixed in with two impostors who pretended to be the contestant.
Now the contestant was sworn to tell the truth, but the two imposters were allowed to lie, in order to confuse the celebrity judges. At the end, after the celebrities all voted , the host would ask, “Will the real [person’s name] please stand up?”
It seems everytime I walk into court, I end up playing “To Tell The Truth”, with the banks playing the role of the contestant. Except in this version (perhaps I should call it To Tell The Truth, Foreclosure Edition) when it comes time for the real lender to ‘please stand up’, no one does!
It is as if all the ‘contestants’ are imposters. An example of this twisted game show is now playing itself out in a Palm Beach County courtroom.
In 2009, HSBC Bank brought a foreclosure action against Abby Lopez. But Bank of America has also claimed to be the lender in this case. Bank of America was the company that included email exchanges between bank representatives about who was the lender of the loan and how to proceed with the foreclosure case.
And yet, Bank of America is not named as a plaintiff in Lopez’s case, only HSBC is.
When Bank of America realized that it should be the plaintiff, it tried to request the foreclosure be changed to show the correct plaintiff. Yet they ultimately decided that the best route would be for HSBC to proceed with the foreclosure and just quit-claim the property to them after the foreclosure was complete.