Posted: Thu Dec 15, 2005 2:13 am Post subject: Rescission: Cancelling a contract
In contract law, rescission implies that a contract between different parties is cancelled. This brings the parties to the same position as they were before they signed the contract. This provides an equitable remedy and depends upon the discretion of the parties.
The court may not rescind a contract if one party has asserted the contract or a third party has acquired some rights. It may also not rescind the contract if there is substantial performance in carrying out the contract.
Often there are errors in the disclosures for loan amount, APR, points, total payment, and the payment schedule. In such a case, any notice of recession becomes ineffective. So you will have to provide new disclosures and a new rescission period. There can also be no recession if the loan is meant for owner financing.
The lender has the responsibility to provide rescission dates in the loan closing package and advise the customer on his rights. He will be the best person to guide the customer on the matter of rescission.
Zeal_Deal Guest
Posted: Thu Dec 15, 2005 2:53 am Post subject:
it is a type of protection given to the borrower under the truth in lending act on certain types of loans. it gives the borrower an opportunity to cancel their loan within 3 business days after applying for the loan. they also qualify to receive a full refund if at all any money is paid. this act gives you extra time to carefully consider your new loan.
Zeal_Deal
Charlie Guest
Posted: Thu Dec 15, 2005 3:31 am Post subject:
Can my lender take any action on my transaction during that period? And if I cancel my loan how should I inform my lender?
Posted: Thu Dec 15, 2005 3:42 am Post subject: RE:
Hi,
Your lender cannot take any action on your transaction during this period. And if you exercise your right to cancel the loan you need to inform the lender in writing that you are canceling the contract. You can use the form given by your lender or by a letter. Make sure that the notice reaches the lender before the midnight of the third day.
Within twenty days from the receipt of notice, your lender needs to return any money or property that was taken by him in connection with the loan.
Thanks,
Jerry
hdtv571 Guest
Posted: Mon Mar 02, 2009 1:47 am Post subject:
What happens if they deny getting the right to rescind notice? I sent it certified mail and they signed for it within the 3 day period. They went ahead and funded the loan anyways.
As a borrower, you will have the rights to rescind the loan within a period of 3 days. This is known as right to rescission. If you have sent them a certified mail, then they cannot deny it. I would suggest you to contact an attorney and get his opinion on this issue.
hdtv, your documentation is sufficient to verify that you rescinded the loan. i concur with james that you'd be wise to discuss this with an attorney - presumably you had one presiding over your closing, right? _________________ George M. Akerley
Loan Consultant
860-221-5044
Well I agree with James and George here. I mean if the mortgage company has already signed the right to rescind notice, it's quite odd on their part to have funded the loan. You should contact the attorney who attended the closing on your behalf and take legal advice as to what can be done in this situation.
alam i have no idea what "gutfiilings" means, and i can only surmise that "isrepresentatin" should have been typed as "representation." that word is defined as:
that came from the Merriam-Webster dictionary (online).
if that's what you meant, great; if not, you need to be a bit more specific.
[System detected duplicate content, converted into image. Thanks.] _________________ George M. Akerley
Loan Consultant
860-221-5044
If certain conditions are met, I believe that TILA (Truth In Lending) extends the right of rescission out to three YEARS from the date of origination. Haven't visited TILA law in awhile - and I'm not an atty - so I'm going strictly off of memory. Definitely something to look into though....
Jessica
