You have rights in foreclosure

"Illinois law recognizes the breach of an applicable HUD regulation as a defense in an action for foreclosure of a federally insured mortgage." 

Hayes v. M & T Mortg. Corp., 389 Ill. App. 3d 388, 391-392 (1st Dist. 2009)

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“‘Under the Truth in Lending Act, 82 Stat. 146, 15 U.S.C. § 1601 et seq., when a loan made in a consumer credit transaction is secured by the borrower's principal dwelling, the borrower may rescind the loan agreement if the lender fails to deliver certain forms or to disclose important terms accurately.’"

Wells Fargo Bank, N.A. v. Terry, 2010 Ill. App. LEXIS 251 (1st Dist. 2010)

April 9, 2009 New Illinois Foreclosure Law

 § 735 ILCS 5/15-1502.5.  Homeowner protection

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(b) Except in the circumstance in which a [homeowner] has filed a petition for relief under the United States Bankruptcy Code, no [lender] shall file a complaint to foreclose a mortgage secured by residential real estate until the requirements of this Section have been satisfied.

Truth in Lending Act


Regulation Z governs the lending transaction, where disclosures are made to you about the interest you will pay on your loan, and what other charges you are incurring for the credit.  

Section 226.22(a) of Regulation Z provides that the annual percentage rate ("APR") for mortgage loans shall be determined in accordance with either: 
                                                       (1) the actuarial method; or
                                                       (2) the United States Rule method. 

If your APR was expressed to you in some other formula, then this may be a violation of the Truth in Lending Act.

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