Defending foreclosure effectively means that you need to know all of the laws, and use all the defenses, at your disposal.  One of the tools to use may be the Truth-In-Lending Act (also known as TILA).

Enacted in 1968, this law is meant to protect consumers from inaccurate or unfair credit billing, by stipulating full disclosure of all key terms and conditions of credit by their lenders. Violations of TILA can mean severe penalties for the creditor, but more importantly, you can use it to keep your home through a special provision known as the right to rescission.

When one rescinds a loan, it will be as if the loan never happened.  You will be entitled to a return of the interest and fees you have paid to the lender to date.

Take note, however, that this right applies only to a non-purchase money security interest on your primary residence. This means TILA applies only to transactions on your primary home - whether it’s a regular house, a trailer, or a boathouse.

This right to rescind normally lasts for three business days, starting from the day you signed the agreement. However, this time period can be extended to three years under special conditions:

1.    You are not properly notified of your right to rescind your agreement.
2.    Your lender fails to properly disclose all credit terms of the transaction, as according to the TILA.

If either case happens, you may be able to rescind your loan in order to halt an impending foreclosure.