John Shelton?

Hi Paul,

You wrote to Rae Jean:

“How were you going to tender the remaining balance due upon rescission?  If you’ve already had a recent discharged bankruptcy, then tender may not be made through another bankruptcy.  Without a means of tendering the reduced payoff, the lender is not required to rescind the loan.”

Why is that? Doesn’t TILA specify that the lien must be released within 20 days? Do you have case law to support this assertion? I’d be interested.

As far as I’ve seen, a judge can modify the terms of tender but rescission is supposed to be within a 20 day period. The judge, as I understand it, has no discretion over that.

I’ve seen rescission misinterpreted many times–even with otherwise knowledgeable judges.

John

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Hello John,

Please don’t be a Shelton!

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.