Can I cancel my mortgage within 3 years?

Borrower sues lender on odd technicality

Editor's note: Robert Bruss is temporarily away. The following column from Bruss' "Best of" collection first appeared Sunday, March 26, 2006. In early August 2000, homeowner Nancy O'Brien received a marketing call from Aames Funding Corp. She expressed interest in refinancing her home and paying off $15,000 in credit card debt. Aames then arranged two mortgage loans for her to pay off the $83,492 first mortgage, consumer debt, property taxes, and transaction charges, for a total of $104,662. Purchase Bob Bruss reports online. On Aug. 31, 2000, O'Brien received a first mortgage loan for $79,500 from Aames. Associates Home Equity Services Inc. funded the second mortgage loan on Sept. 6, 2000, to bring the total loans to $104,662. The Aames loan included a Truth in Lending Act (TILA) disclosure giving O'Brien until Sept. 5, 2000, to change her mind and cancel the Aames loan. She did not exercise her TILA right to cancel the Aames loan. However, on July 8, 2003, O'Brien n...