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#1567390 - 06/21/11 12:33 PM Borrower Recinds loan, then changes mind????
Wore Out Offline
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Wore Out
Joined: Dec 2003
Posts: 543
Kentucky
We have borrowers who just recinded their loan last night, which was day 3 of the rescission period. Now they've called this morning and said they were "hasty" in their decsion and would like to proceed with closing today. Reason for rescission was not related to our loan, which is a bridge deal.

Can we have them write a letter negating the rescission and proceed with the loan? What can/can't we do? Never had this happen before.
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#1567394 - 06/21/11 12:46 PM Re: Borrower Recinds loan, then changes mind???? Wore Out
Skittles Offline
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TN
I think no. Once you rescind that's it. I think they need to start all over again - and you still have to refund all fees and can't 'hold' this against them.
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#1567395 - 06/21/11 12:53 PM Re: Borrower Recinds loan, then changes mind???? Skittles
Wore Out Offline
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Kentucky
OK. so now does MDIA kick in? They need to close today or they would be in breach of contract, which creates financial harm.
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#1567398 - 06/21/11 01:06 PM Re: Borrower Recinds loan, then changes mind???? Wore Out
Dan Persfull Offline
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Bloomington, IN
That is not a financial emergency. That's just poor timing and judgement on their part. They canceled the transaction therefore it no longer exists and a new transaction needs to be started.

Search the threads using +accidental +rescission as the search term and you will find several previous discussions.
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#1567400 - 06/21/11 01:16 PM Re: Borrower Recinds loan, then changes mind???? Dan Persfull
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Kentucky
Thanks.
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#1567429 - 06/21/11 01:56 PM Re: Borrower Recinds loan, then changes mind???? Wore Out
Wore Out Offline
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Wore Out
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Kentucky
So if this is creates a "new transaction", can the borrowers voluntarily waive the MDIA waiting periods and rescission?
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#1567461 - 06/21/11 02:37 PM Re: Borrower Recinds loan, then changes mind???? Wore Out
Skittles Offline
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TN
You can only waive the rescission if there is a financial emergency. There isn't one in this case (like Dan stated) - they goofed. I'd be very careful with this one - it seems like a slippery slope to me.
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#1567465 - 06/21/11 02:38 PM Re: Borrower Recinds loan, then changes mind???? Skittles
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Wore Out
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Kentucky
We've decided to simply let it be. They will have to do it all over again. Thanks to you both for your help!!!!
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