closing and 3 day recession

toniarjordan · Joined: 24 Aug 2006 Posts: 1 1.27 Dollars($)

Once I have had my closing is that the end of the loan process or can things be changed by the lender during the 3 day recession???

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Yes a lender can cancel the loan during the rescission period

Guest 0.10 Dollars($)

do they also have unitl the end of the 3rd business day and who will notify you??

Guest 0.10 Dollars($)

Hi,

I would like to say that three day recession is for the buyer to review all the documents and if like cancel the agreement.

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what are my rights if the lender pushes the loan through before the 3 days are up?

blue · Posted: Wed Jun 06, 2007 1:24 pm Post subject:

Hi Mark,

Welcome to Mortgagefit discussion board.

A similar question was asked today on this page: http://www.mortgagefit.com/know-how/rescind-loan.html

Kindly have a look to know the answers community members have given to that question.

Do let me know if you have any other questions.

Thanks
Blue

kenstampe · Posted: Thu Jun 07, 2007 12:20 pm Post subject:

The loan cannot FUND until the end of the rescission period. This is a federal requirement and cannot be avoided. The rescission period starts after the loan is signed or closed and ends at midnight at the end of the third business day. Saturdays are counted as a day of rescission but Sundays and holidays are not. If you close on a Tuesday for example, then Wednesday, Thursday and Friday are your rescission days ending at midnight Friday night. In that case, your loan will not fund until Monday as funding only happens Monday through Friday.

The rescission period is a protection for a borrower in a refinance transaction and only applies to refinances of primary residence properties. Rental properties, vacation homes, loans on unimproved land and all purchase loans are NOT affected by the rescission requirement.

The purpose is to give the borrower extra time after closing to consider if the loan that they signed truly meets their needs. This prevents borrowers from getting to the loan closing and signing a loan with terms different then what they expected and having to succumb to pressure at closing to sign a bad deal.

While it is true that during the rescission period the lender could ALSO cancel the loan, this rarely happens unless something comes up to point to fraud or misrepresentation on the borrower's part....or in the case of the lender going out of business during the rescission period which happened earlier this year with some of the large sub-prime lenders going under.

hope this helps...

Caron · Posted: Fri Jun 08, 2007 5:29 am Post subject:

Ken, I like the idea of giving the borrower the right to rescind a loan. It gives the borrowers a chance to think over again even though the closing is over. That's a good thing that the industry has thought about its borrowers. The right of rescission helps the borrowers to go after a better deal at times when they feel that they cannot manage the deal they have already signed for.

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