Beach v. Ocwen Federal Bank
Beach v. Ocwen Fed. Bank, 523 U.S. 410 (1998)
- Court
- Supreme Court of the United States
- Decided
- 1998-04-21
- Docket
- 97-5310
What happened
Facing foreclosure, the Beaches tried to rescind their loan as a defense, more than three years after it closed.
What the court decided
The Supreme Court held that the federal right to rescind ends completely three years after closing; it cannot be revived as a defense in a foreclosure.
In the court's words
“the Act permits no federal right to rescind, defensively or otherwise, after the 3-year period”
Why it may matter to you
An honest limit: check your closing date before spending time on rescission.
Why it might not apply
State law may offer other defenses; this case is only about the federal rescission right.
Most useful when
- You want to raise Truth in Lending rescission more than three years after closing
How to cite it
The full citation for the first time you mention it, a short form for later, and a sample sentence you can adapt.
Beach v. Ocwen Fed. Bank, 523 U.S. 410 (1998)Short formBeach, 523 U.S. 410Draft — check it with free legal aid before you file or say it in court.
In Beach v. Ocwen Fed. Bank, 523 U.S. 410 (1998), the court held that the federal Truth in Lending right to rescind expires three years after closing and cannot be raised defensively after that. Here, [say in one sentence what happened in your case]
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