Paatalo v. JPMorgan Chase Bank
United States District Court for the District of Oregon
2015 WL 7015317 (2015)
Relevant factsFree
Paatalo (plaintiff) refinanced his mortgage with WaMu, later suspecting fraud and TILA disclosure violations, and sent WaMu a notice of rescission in 2008, which WaMu declined; WaMu then foreclosed, and JPMorgan (defendant) bought the property at the sale. Paatalo sued JPMorgan seeking a declaration that the foreclosure was void because his rescission predated it, and JPMorgan moved to dismiss, arguing rescission required Paatalo to have sued WaMu before or alongside sending notice.
IssueFree
Whether a borrower's rescission of a loan becomes effective when he notifies the creditor of his intention to rescind.