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Stop Foreclosure

Here is a sample of one Counter Complaint to stop a foreclosure. Title issues force the
adjudication of this action before any other judicial action can proceed. This is written in
such a way that the lenders recognize that they are not in honor in the statutes and
regulations and it would be in their best interest to settle on terms presented by the
borrower.

IN THE CIRCUIT COURT FOR THE 18TH JUDICIAL DISTRICT

DUPAGE COUNTY – WHEATON, ILLINOIS

Bank of America, N. A. ) Case No. 2003 CH


1093
Plaintiff )

vs. )

Richard L. S*******, et. al. )

Defendants )
Counter Complaint
)

Complaint

This is an action for recovery of damages. This counter complaint is filed and these proceedings
are instituted under the Consumer Credit Protection Act, 15 USC ''1601 et seq. and Title 12 Code
of Federal Regulations, Part 226, regulation Z and X. Jurisdiction of this court is invoked
pursuant to Title 15 USC §§1601, 1640(e).

The credit transaction was rescindable and subject to the disclosure requirements of Title 15 USC
§ 1635(a) and Title 12 Code of Federal Regulations, Section 226.23(a) even though Plaintiff did
not waive their right to retain or acquire a UCC lien on the property. The UCC lien, nevertheless
apply to the transaction under revised Article 9 and to Plaintiff because lien rights on the
property arose in favor of the Plaintiff as a result of the transaction. The Federal Reserve Board
Interpretation, Title 12 Code of Federal Regulations Part 226, Supplement I, Paragraph 23(a)(1),
provides that in such a situation the transaction is rescindable.

The disclosures made in relation to the consumer credit transaction were not presented in the
manner required by law. The disclosures were not grouped together and were not segregated
from everything else as required by Title 12 Code of Federal Regulations, Section 226.17(a)(1).
Instead, Plaintiff's disclosure statements was arranged as follows:

(a) Right to rescind or cancel was inside other disclosure statements and went unsigned by both
parties.

(b) The interest disclosures were grouped together with other information within the documents.

(c) The two required statements under 15 USC §1639(a)(1)(A) and (B) are completely missing.

(d) Required disclosure statements are completely missing under 15 USC §1638(a)(2)(B) (a)(9),
(a)(11) and (a)(12).

The notice of the right to rescind delivered to Defendant by Plaintiff consisted of a single sheet
of paper, and did not include a form by which Defendant could exercise such right, as required
by Title 12 Code of Federal Regulations, Section 226.23(b)(3).

Since this action was commenced, Plaintiff has continued and so continues to violate the
Consumer Credit Protection Act, Title 15 United States Code, Section 1601 et seq., and
Regulation Z, Title 12 Code of Federal Regulations, Part 226, which was adopted pursuant to
such Act, by failing to properly make the disclosures required by the Act and Regulation Z and
X, as herein after more particularly set forth.

Plaintiff failed to disclose the amount of its finance charge in the disclosure statement, using the
term "finance charge," as required by Title 12 Code of Federal Regulations, Section 226.7(f).

Plaintiff failed to disclose in or with the disclosure statement each periodic rate that may be used
to compute its finance charge, the range of balances to which such periodic rate is applicable,
and the corresponding annual percentage rate.

Plaintiff failed to compute in or with the disclosure statement the annual percentage rate (or
rates) of its finance charge as required by Title 12 Code of Federal Regulations, Section
226.7(g).
Plaintiff failed to disclose in or with the periodic statement the amount of the balance to which
the periodic rate was applied and an explanation of how that balance was determined and further
failed to disclose the fact that the balance is determined without first deducting all credits and
payments made after acceleration and the amount of such credits and payments as required by
Title 12 Code of Federal Regulations, Section 226.7(e).

Plaintiff failed to disclose in or with the acceleration statement the amounts, itemized and
identified by type, of charges other than finance charges debited to the account during the
acceleration period as required by Title 12 Code of Federal Regulations, Section 226.7(h).

Plaintiff failed to disclose the date by which or the time period within which the new balance or
any portion of the new balance must be paid to avoid additional finance charges as required by
Title 12 Code of Federal Regulations, Section 226.7(j).

By reason of the foregoing, Plaintiff has failed to make the disclosures required by 15 USC
§1601 et. seq. and Title 12 Code of Federal Regulations, Section 226.7, clearly and
conspicuously in writing, in a form that Defendant could keep as required by 15 USC §1601 et.
seq. and Title 12, Code of Federal Regulations, Section 226.5(a)(1).

As a result of Plaintiff’s aforesaid violations, Plaintiff is liable to Defendant in an amount not


less than $2000.00 per violation, clear title to property with fixtures and cost of litigation, as
provided in Title 15 United States Code, Section 1601 et. seq.

Dated this day of February 2004.

The key to a successful action against the predatory lending practices of lenders is accurate,
complete paperwork that properly cites the statutes and case law.