SOURCE: Florida Homestead Law Group

Florida Homestead Law Group

January 27, 2011 06:00 ET

Florida Homestead Law Group: Advocates Against Federal Truth in Lending Act Amendment

Florida Foreclosure Defense Attorneys and Consumer Advocacy Groups Oppose Proposed Amendment

FORT LAUDERDALE, FL--(Marketwire - January 27, 2011) - As residential foreclosures continue to force Floridians out of their homes, a proposed amendment to the Federal Truth in Lending Act may present yet another obstacle for homeowners. Florida Homestead Law Group, advocates of financial responsibility and consumer rights, is joining the chorus of consumer advocates urging the Federal Reserve Board to withdraw the proposed amendment.

The Truth in Lending Act has given homeowners in Florida and the United States the right to cancel or rescind illegal loans for up to three years after the transaction occurred, if proper disclosures weren't provided by the lender at closing.

Ben Bernanke, Chairman of the Federal Reserve Board, has suggested that regulations under the Federal Truth in Lending Act be tightened. This could potentially eliminate or curtail a homeowner's ability to seek and obtain a rescission of their existing mortgage loan. This proposal has fostered opposition from consumer advocacy groups, as well as Florida foreclosure defense attorneys.

"The effects of this amendment, if passed, would make it much harder for homeowners to stop foreclosures and escape predatory home loans with onerous terms," said Scott Podvin, Lead Attorney for Florida Homestead Law Group.

"At Florida Homestead Law Group, when answering foreclosure complaints, we use the Federal Truth in Lending rescission clause as an affirmative defense to protect older homeowners stuck in predatory loans with costly terms," Podvin said. "The rescission clause potentially helps struggling homeowners to fight foreclosure cases in which faulty and sometimes fraudulent disclosures were used."

A homeowner contemplating a strategic default or one already in the midst of a foreclosure should consult an attorney to determine whether the defense of rescission would be effective. To contact a Florida foreclosure defense attorney or to learn more about the options available, visit Florida Homestead Law Group at www.homesteadlegal.com.

About Florida Homestead Law Group: The Florida Homestead Law Group, based in South Florida, strives to provide client focused interdisciplinary services, resulting in a hands on legal representation experience for all clients. The attorneys and staff are advocates of financial responsibility and consumer rights. To learn more about how the Florida Homestead Law Group can help you, visit them at www.homesteadlegal.com.

Contact Information

  • Contact:
    Florida Homestead Law Group
    Address: 1640 W. Oakland Park Blvd.
    Fort Lauderdale, FL, 33311
    Phone: (888) 907-3796
    Web Address: http://www.homesteadlegal.com