The Chronology of TILA Rescission

SIMPLE LOGIC, NO DEBATE

I said it before and the Supreme Court said I was right. I said it again and the Supreme Court will again issue a ruling that conforms with my statements about TILA Rescission. The longer the rebellion (by the courts) goes on, the more title, rights, obligations and certainty will be undermined.

It’s not up for debate, which many people have tried to promote. The statute is clear and the Jesinoski decision drills home the point — the chronology of TILA rescission starts with delivery or mailing the notice of cancelation. It is THEN that rescission is effective by operation of law. It is a “done deal.”

This is NOT an “interpretation” or “theory”. I am only quoting the final decision from the Supreme Court that makes final decisions that may not be appealed.  And the reason why SCOTUS was unanimous 9-0, Justice SCalia said, is that the statute could not be more clear and unambiguous. 

All other arguments are policy arguments that should be taken up with the legislative branch of government. The debate is over. Any contrary ruling, motion, decision or judgment is void. A new Supreme Court ruling is expected in which it considers what to do with lower courts that refuse to follow orders from their boss (SCOTUS).

The legal effect is that the loan agreement is over and the note and mortgage are void. The debt survives but (1) is now conditioned on compliance with the lender’s obligations under the statutory scheme that replaced the loan agreement and (2) enforcement in all events is barred by the one year statute of limitations even if  the lender did comply with the statute.

In some states the statute of limitations extinguishes the debt. In others it must be raised as an affirmative defense and is subject to possible renewal as with payments made after the SOL expires.

Let us help you plan your TILA rescission strategy, discovery requests and defense narrative: 202-838-6345. Ask for a Consult

PLEASE FILL OUT AND SUBMIT OUR FREE REGISTRATION FORM WITHOUT ANY OBLIGATION. OUR PRIVACY POLICY IS THAT WE DON’T USE THE FORM EXCEPT TO SPEAK WITH YOU OR PERFORM WORK ORDERED BY YOU. THE INFORMATION ON THE FORMS IS NOT SOLD NOR LICENSED IN ANY MANNER, SHAPE OR FORM. NO EXCEPTIONS.

Get a Consult and TERA (Title & Encumbrances Analysis and & Report) 202-838-6345. The TERA replaces and greatly enhances the former COTA (Chain of Title Analysis, including a one page summary of Title History and Gaps).

THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.

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In any TILA rescission brief, I think the emphasis should be on chronology, subject matter jurisdiction and due process. I.e., that rescission removed the note, mortgage and loan agreement from legal consideration and therefore subject matter jurisdiction was lacking thereafter — a point that can be brought up anytime, even on appeal or even later.

  • AND that imposing a remedy based upon void documents violates due process rights of the borrower.
  • AND that any ruling denying the application of TILA rescission is void in the absence of a party with legal standing seeking a remedy (vacating the rescission) asserting (1) legal standing (injury) and (2) grounds upon which the rescission could be vacated.
  • Any contrary ruling (ignoring the TILA rescission) is itself void on both jurisdiction and due process grounds.
The fundamental facts must be clearly stated and must be based upon chronology. The rescission caused the loan agreement, the note and the mortgage to be void by operation of law at the moment of mailing or delivery. That is exactly what the statute says and exactly what Jesinoski says with emphasis on the word “when.”
If that remains true, then it is fundamental error for a trial court or appellate court to treat the loan agreement, note and mortgage to be in existence after receiving notice of the existence of the rescission, whether recorded or not. It therefore follows that it is fundamental error, without jurisdiction and a deprivation of fundamental and natural rights of the borrower to due process if a court grants relief or a remedy based upon the void documents.
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There is no basis for a motion or ruling (from any court other than SCOTUS) that starts with the premise that rescission is effective upon delivery or mailing “IF”. There is no “IF.” There is no “provided.” There is no “However.” There are no conditions other than delivery or mailing.
Everything that attempts to impose conditional statements on the TILA rescission statute is wrong and void. Each such attempt assumes grounds for vacating the rescission have been proven by a party with standing. Due process requires the party who is directly injured by the “wrongful” rescission to initiate a lawsuit that begins with legal standing, asserts the rescission is effective, and the grounds for why the rescission notice should be vacated.

3 Responses

  1. This is not accurate. The timeline begins with closing the loan, and whether or not the borrower gets disclosures. There is no “statutes of limitations don’t exist” opinion by the Supreme Court, nor will there be.

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  2. A new Supreme Court ruling is expected in which it considers what to do with lower courts that refuse to follow orders from their boss (SCOTUS).

    When is this ruling expected? any day? in a month? 2 months? What case is it based on?

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  3. What can a homeowner/borrower do if the courts and judges do not follow the law and do not give one due process? The judges I am hearing are taking money from the servicers and their attorneys to just ram the foreclosure through.

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