In 2007, a couple from Minnesota, Larry and Cheryl Jesinoski, refinanced their mortgage with Countrywide. Exactly three years later the Jesinoskis tried to rescind the loan by writing a letter to Bank of America Home loans, which purchased Countrywide during the housing crisis. This meant that Larry and Cheryl, through the Truth in Lending Act, had the right to cancel their mortgage as long as they did so within three years after the transaction was completed.
Yet, Bank of America tried to block the rescission and the Court of Appeals for the Eighth Circuit ruled in favor of the bank, stating that the borrower must not only give notice but also file a lawsuit within three years. However, on Tuesday Jan 13, 2015, the U.S. Supreme Court ruled in favor of the couple, with Justice Antonin Scalia interpreting the law, stating that it without a doubt requires only a notification of rescission within three years and not litigation. Please note that when a loan is rescinded, however, the homeowners often have to give the mortgage loan funds and fees back to the bank or lender.
Contact Philadelphia Foreclosure & Mortgage Modification
Attorneys Shaffer & Gaier
To set up an appointment, call our foreclosure hotline at 855-289-1660 or contact us online. Your first consultation is free of charge. Evening and weekend meetings can be arranged upon request. We will travel to your home if necessary to meet with you.
