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#1978858 - 11/25/14 01:33 PM Rescission from Prison?
Carolina Blue Offline
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Carolina Blue
Joined: Jul 2005
Posts: 960
Lost in a regulatory fog
I got a good one. Wife applies to get an equity loan on her primary dwelling. Right of rescission applies. The husband is in prison. Is the house still the husband's primary dwelling giving him right to rescind or can we consider the prison his primary dwelling?

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#1978886 - 11/25/14 02:33 PM Re: Rescission from Prison? Carolina Blue
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
Why would you even risk it if he has ownership in the property? Unless the husband is doing a life sentence without the possibility of parole the prison is a "temporary residence".

I can see it now, husband; "....bank lets my wife mortgage my home without my consent and bank forecloses. Now that I'm out on parole I have no place to live".
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1978956 - 11/25/14 04:19 PM Re: Rescission from Prison? Dan Persfull
Carolina Blue Offline
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Carolina Blue
Joined: Jul 2005
Posts: 960
Lost in a regulatory fog
Just curious cause I'm not sure of the logistics on how we get him to sign the ROR. He can sign the deed in advance but not the ROR, right? I'm hoping she has POA for him, but I don't know yet.

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#1978961 - 11/25/14 04:21 PM Re: Rescission from Prison? Carolina Blue
John Burnett Offline
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John Burnett
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Cape Cod
Well, unless you have a policy that calls for obtaining the consumer's signature acknowledging receipt of the Right to Cancel Notice, it's not needed. The regulation certainly does not require it.
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#1978993 - 11/25/14 05:16 PM Re: Rescission from Prison? Carolina Blue
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
I agree with John concerning signatures are not required. But in this situation, since you must provide 2 copies of the rescission form to each consumer having the right to rescind, I would want some sort of documentation the husband received his copies.

Another issue to consider. If he drops the rescission form stating he wants to rescind in the prison mail on or before midnight of the 3rd business day and due to the prison mail processing it's not sent until day 5, where does not leave you? Did he rescind in time or didn't he? As you said hopefully she has a valid POA.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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