Legal Question in Elder Law in California

You can't legally rescind a note and mortgage under TILA or any other law until you have a court order or judgment that it is rescinded. You can't just record a rescission; you have to record a judgment cancelling the mortgage. In order to rescind any contract, you also have to return what you got as part of the contract. So if she didn't repay the debt, or at least tender the payment into court along with filing a lawsuit for rescission, there is no rescission. So that is why the house was foreclosed on, and there was nothing wrongful about it.

On the issue of the law firm, however, I agree that this sounds very much like a case of elder financial abuse and legal malpractice. On top of that, it is illegal in California to take ANY payment in a loan modification case until ALL services have been rendered and the firm is no longer representing the client. You don't say whether they promised to modify the loan or just cancel it, but if any work was to be done to modify it, that's another illegal act.

Your elderly friend needs to contact the Adult Protective Services in her county and file a complaint against the law firm. She should also file a complaint against the firm and all the attorneys involved with the State Bar. If she has the money left to do so, she should also immediately hire an attorney to sue the firm and the involved lawyers.

If I can be of further assistance, please let me know.