Chicago Foreclosure Lawyer Blog

The Truth In Lending Act (TILA) was first enacted in 1968. Congress crafted TILA to provide consumers with significant protections from unfair credit practices. TILA requires lenders disclose credit terms to consumers. Armed with this information, consumers are then able to make a more informed use of credit. Ideally, a well-informed consumer would know the cost of various credit packages and be able to choose the best one for his or her needs. In practice, this goal is not always met.

As a result, TILA provides consumers with several rights and remedies that can be useful in a foreclosure defense or offense. One example is the right of rescission. For some mortgage transactions, it is possible for a consumer to rescind the transaction up to three years after closing. This powerful tool is designed to put the individual in a stronger bargaining position. Rescission is essentially the unwinding of the entire transaction, which can be a powerful tool for negotiating a settlement. In very rare cases, it may allow a consumer to keep his or her property without further obligation. More likely, it helps consumers walk away from properties they cannot otherwise afford.

More in-depth analysis of TILA and its component parts will follow in future posts.

A Deed In Lieu of Foreclosure is a voluntary transfer of the property to the Lender in full satisfaction of the amount owed. By accepting the Deed In Lieu of Foreclosure, the Bank, in most instances, releases the Borrower/Homeowner from personal liability on the loan also known as a deficiency. Commonly, Banks are not as likely to accept a Deed In Lieu of Foreclosure if there are other liens on the property. In our practice, we have been able to secure Deeds In Lieu of Foreclosure by settling with the Secondary Lender and other lien holders, effectively clearing title for the Lender to facilitate the transfer. It is an intricate process and requires a full review of your file to come to a conclusion if this is even a good option for you.

U.S. Mortgage Delinquencies Reach a Record High And Illinois

The economy and the stock market may be recovering from their swoon, but more homeowners than ever are having trouble making their monthly mortgage payments, according to figures released Thursday. The overall third-quarter delinquency rate is the highest since the association began keeping records in 1972. It is up from about one in 14 mortgage holders in the third quarter of 2008.