Picture this…you bought a property during the boom of the real estate economy and paid top dollar for it. Now the economy isn’t what it used to be and you find yourself owing more than the property is worth. What do you do? Exercise your Extended Right of Rescission!

Because of the Federal Truth in Lending Act you have the Right of Rescission regarding your home loans. This Right of Rescission last for 3 days under normal circumstances! However, the recent boom in the real estate economy wouldn’t be considered normal circumstances. With the frenzy of lenders originating loans there were a lot of mistakes made. Chances are very good that there were some mistakes made regarding your loan! If that is the case, you have an Extended Right of Rescission regarding your current home loan.

If you indeed qualify for the Extended Right of Rescission you can simply notify your lender that they have violated your rights under the Truth in Lending act and that you want to rescind your loan(s). The lender then must cancel their loan, repay all the money they have received in connection with the loan (and its origination) and then you give them back the house. You also have the option to pay the lender a reasonable amount (possibly through a refinance) and keep the house. It’s that simple!

There are 2 significant tricks to this option. Because of these two hurdles I would advise you to seek competent legal assistance before exercising your option and Right of Rescission. The first trick is that you have to find an error relating to the Truth in Lending act in your mortgage and closing documents! The second trick is that you’ll most likely have to defend your position in court as most lenders don’t take too kindly to having their loans rescinded with no consequence to you (the borrower) and generally will file some sort of lawsuit.

Once the court rules in favor of your rights, the lender will pay you to take back the over-priced property, pay all attorney’s fees and the burden of sale is theirs. You are then free to find a new home with no further obligations.