Extended Rescission Letter

XYZ Mortgage Company
123 Anywhere Street
Anyplace, New York 54321

RE:  Fred Flintstone Account#1234567890

Dear Sirs,

I hereby exercise my rights under the Federal Truth in Lending Act, 15 U.S.C. § 1635, Regulation Z § 226.23, to rescind the above referenced mortgage loan.  The disclosures were not made “clearly and conspicuously in writing” as required by 15 U.S.C. § 1632(a); Reg. Z. § 226.17(a).  Specifically, the Truth in Lending disclosure statement was defective for the following reason:

Conventional Fixed:  The notation on the top right of the TIL disclosure statement reads “Conventional Fixed Adjustable”.  This is misleading and unclear in violation of 15 U.S.C. § 1632(a); Reg. Z. § 226.17(a).  It is indisputable that the instant loan is an adjustable rate mortgage and not a fixed rate loan.  This type of misleading notation is similar to the disclosure violation in Andrews v. Chevy Chase Bank, 240 F.R.D. 612 (E.D. Wis. 2007) where the trial court concluded it “would not be useful to an ordinary borrower because it would cause the loan to appear more attractive than it actually was and serve no useful purpose”.  Andrews v. Chevy Chase Bank, 2008 WL 4330761 (7th Cir, Sept, 2008) was a class action and on appeal it was determined that each class member may rescind individually.  The 7th Circuit also restated: “a computer generated stamp on the top of one of Chevy Chase’s disclosure forms made the disclosures misleading.  The stamp, they asserted – which referred to the note as ‘WS Cashflow 5-year Fixed Note Interest Rate: 1.950%’ – could be understood to identify the note as a fixed-rate note.”

Pursuant to 15 U.S.C. § 1635(f), my right to rescind this loan extends for three-years as a result of this defective Truth in Lending disclosure statement.  This rescission notice has been sent to you within that time period.

Please be advised there is a short sale in process or a short sale will soon be in process with your company and I am prepared to tender the reduced payoff amount through the short sale once the proper credits have been reflected in my reduced payoff.  Alternatively, please be advised that tender may also be made through bankruptcy [Jaaskelainen v. Wells Fargo Bank, N.A. (In re Jaaskelainen), 391 B.R. 627 (Bankr. D. Mass. 2008)], although I would prefer a short sale and this is not an area that I have explored, yet I do feel I would qualify and this information is provided as formal notice that tender is available once the credits have been made through one of these options.

Additionally, please consider this letter a “Qualified Written Request” per RESPA and as such I am demanding an accounting of my loan including the following: loan disbursements, charges, all payments paid to date, and the principal balance.

Please be advised that your security interest in my home is now void per 15 U.S.C. § 1635; Regulation Z § 226.23 and you have twenty-days to return all of the payments I have made on this loan and to do your part to terminate the security interest in my home.

Thank you for your immediate attention to this matter and govern yourself accordingly.

Fred Flintstone
(555) 555-5555
100 Bedrock Lane
Flint, Michigan 98765
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