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#947429 - 04/22/08 05:19 PM closed end second mortgage rescission question
stella Offline
Member
Joined: Nov 2006
Posts: 61
If someone purchases a home and gets a second mortgage that closes with the first mortgage but the second mortgage funds are not used to purchase the home will that second mortgage have a rescission?

what if the second mortgage was an open ended home equity line of credit...it would have a rescission correct?

Thanks!

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Lending Compliance
#947432 - 04/22/08 05:22 PM Re: closed end second mortgage rescission question stella
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
Regardless if it's an open-end or closed end credit if the surbordinate lien loan does not meet the definition of a residential mortgage transaction (226.2(a)(24)) then the ROR applies.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#947443 - 04/22/08 05:33 PM Re: closed end second mortgage rescission question Dan Persfull
stella Offline
Member
Joined: Nov 2006
Posts: 61
Thanks!

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