RIGHTS DESPITE THE SALE OF THE SUBJECT PROPERTY
Section 1635(f) of 15 U.S.C. provides that "[a]n obligor's right of rescission shall *18 expire three years after the date of consummation of the transaction or upon the sale of the property, whichever occurs first. ..." Relying on this language, Thomas contends that Dawson's sale of her property has extinguished her right to invoke TILA's rescission remedy in this proceeding. As explained in more detail below, the court concludes that Dawson timely exercised her right to rescission by the filing and prosecution of this adversary proceeding, and she did not waive or extinguish that right by selling her house prior to the court's issuing a decision. Furthermore, because Dawson's right to damages survives regardless of whether her right to rescission hasbank's title on foreclosure, Congress may well have chosen to circumscribe that risk, while permitting recoupment damages regardless of the date a collection action may be brought. See Board of Governors of Federal Reserve System, Annual Report to Congress on Truth in Lending for the Year 1971, p. 19 (Jan. 3, 1972); National Commission on Consumer Finance, Consumer *22 Credit in the United States 189-190 (Dec. 1972).
This makes sense. In a foreclosure sale context, a mortgage that remains subject to rescission could result in a cloud on the purchaser's title. Section 1635(f) provides assurances that the bank can sell the property at foreclosure without there being a risk of rescission clouding the purchaser's title, a risk that could depress the amount that might be bid at the foreclosure