Patricia Rodriguez Tonite! What Happens After a Mortgage Loan is Rescinded? Tonight on the Neil Garfield Show 6pm EST

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 In addition to simply exercising rights under the law of the land, homeowners who send and record rescissions are in actuality attacking standing through another door to the courtroom. Because in the end, the only party who can dispute a rescission is a creditor who actually owns the debt because the debt is owed to that creditor.

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AND because of the rules of procedure set forth in TILA rescission, NOBODY can challenge or dispute a rescission unless and until a real creditor steps forward within the 20 day window of opportunity to dispute the rescission.

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Sending a letter telling the homeowner his rescission is no good just seals the doom of the servicer and all the other players in the false game of nonexistent securitization. But the letter DOES establish that the group of companies calling themselves “the Lender” actually received it. Filing a motion or memorandum disputing the homeowners motion to dismiss won’t cut it either if the same parties who started the foreclosure try to do it because there is no more note or mortgage.

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But in all events, as the Supreme Court has stated, all rescissions are effective when sent whether they are disputed or not. Raising the issue of a statute of limitations is a dispute. The three years runs from the date of consummation.

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Who is to say whether the transaction was EVER consummated and if so, when? That is a factual issue that can ONLY be raised in a legal dispute. AND the legal dispute can only be raised by filing a lawsuit seeking to vacate the rescission. The lawsuit can only be filed by a party with standing — and standing to dispute a rescission can ONLY come from the real creditor. Nobody can use the note and mortgage for anything, least of all standing, because there is no more note and mortgage. They are void because of rescission.

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So what happens after rescission is sent? Do the heavens open up and rain money on borrowers. Not so fast.