Cengage Advantage Books: Foundations of the Legal Environment of Business 2nd Edition by Marianne Jennings, Albert Napier, Marianne Jennings

Exercise 12

David and Betsy Fuller bought land in Tyngsboro, Massachusetts, in 1991 and built the home they have lived in ever since. In 2003, the Fullers refinanced their mortgage, obtaining a $256,500 loan from Encore Credit Corporation. Later that year the mortgage was assigned to Deutsche Bank National Trust Company. The Fullers fell behind on their payments to Deutsche Bank, which began foreclosure proceedings in 2008. The Fullers filed for bankruptcy, but fought the foreclosure on the grounds that their loan from Encore closed a day after it was supposed to and that, therefore, their three-day right of rescission notice was wrong on the mortgage disclosure. The Fullers were aware of their right of rescission but argued that the disclosure was flawed because it gave them only two days instead of the statutory requirement of three days. The Fullers asked to have the mortgage eliminated from their property. Should the court eliminate the mortgage? Why or why not? Are other remedies available under the CFPA? [In re Fuller, 642 F.3d 240 (1st Cir. 2011).]