TILA + Vicky = Tricky

$40K question with Indymac.  They are willing to look at $25K now I spoke to them.  I offered them $1K cash and a $10K note to get it over with. They rejected it and will only look at $25K.  I thought about getting a BK lawyer to write them a letter to state that I am available for BK, but I am afraid they might close my file.  Only part of my loan is recourse.  I purchased for $580K did two refis and my loan was transferred.  Loan was “as stated”.  I can’t file BK because I am getting an inheritance and yes I embellished on my application.  Should I just take it and make them sign something that no further action should be taken. 

Vicky from LA

—————-

Hi Vicky,

You write: “Should I just take it and make them sign something that no further action should be taken.”  Vicky, that’s up to you.

I would not have a bankruptcy lawyer write a letter.  Where bankruptcy plays a part is typically notated in the hardship letter as something along the lines of “I am told bankruptcy is an option, nevertheless, I hope that the person reading this letter will understand that I am overloaded with debt and in way over my head, and permit this short sale.”  However, in your case you would not want to write such a thing because it is not true.

My feeling is that you would have the most success if you found TILA violations in the paperwork.  Heck, with two refis on a $580K loan, they may end up owing you money – and not a small sum of money.  Keep in mind that a borrower may rescind certain loans for technical violations of the TILA three-years later and the lender is required per statute to refund the finance charges paid which also includes the interest portion of all those monthly mortgage payments.  Nice!

Read: Qualified Written Request

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.