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#1776917 - 01/16/13 07:02 PM Right of Rescission- Apply
Dodge Offline
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Posts: 241
We are financing a loan to purchase a new primary dwelling for a customer. However, we are adding additonal money to pay off a mortage loan at another bank on their current primary dwelling that will be demolished for their new primary home to take its place.

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#1776935 - 01/16/13 07:25 PM Re: Right of Rescission- Apply Dodge
swiggles Offline
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I'll take a stab....but just a guess. If the old home will be demolished including the foundation, down to the dirt, it's a construction loan. By paying off (refinancing) the loan from the other bank, the bank is basically just acquiring the lot for the new construction.

Strike me down, O gurus..........
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#1776937 - 01/16/13 07:26 PM Re: Right of Rescission- Apply Dodge
swiggles Offline
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Oh....and so based upon my opinion above, no ROR.
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#1776938 - 01/16/13 07:26 PM Re: Right of Rescission- Apply Dodge
swiggles Offline
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Well, upon rethinking....if the borrower is still living in the home at closing, I would say, yes.....ROR.

Anyone else?
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The more you sweat in training, the less you bleed in battle.......

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#1776953 - 01/16/13 07:34 PM Re: Right of Rescission- Apply Dodge
Kolt55 Offline
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Joined: Sep 2012
Posts: 27
Illinois
ROR does exist for the amount of money that will be paying off the other mortgage.
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The opinions expressed are mine and not those of my employer and should not be considered legal advice.

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#1776955 - 01/16/13 07:35 PM Re: Right of Rescission- Apply Dodge
Kolt55 Offline
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Joined: Sep 2012
Posts: 27
Illinois
I do not believe that demolishing the old home relieves the Bank of their liability
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The opinions expressed are mine and not those of my employer and should not be considered legal advice.

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#1776991 - 01/16/13 08:13 PM Re: Right of Rescission- Apply Kolt55
La. Lady Offline
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ROR applies...in my opinion
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#1777078 - 01/16/13 09:56 PM Re: Right of Rescission- Apply Dodge
swiggles Offline
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See? I was trying to make it too difficult.
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The more you sweat in training, the less you bleed in battle.......

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#1777212 - 01/17/13 02:34 PM Re: Right of Rescission- Apply Dodge
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
If you take a security interest in what is the consumer's existing primary dwelling at the time the loan is made then rescission will apply regardless what the intent for that dwelling is after closing. This of course is assuming the loan is subject to Reg. Z.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1787089 - 02/18/13 03:53 PM Re: Right of Rescission- Apply Dodge
biz Offline
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Joined: Nov 2005
Posts: 1,032
Midwest
Do we have an obligation, when the refi is to use monies out to purchase a new dwelling, to indicate on the RoR what dollar portion is rescindable?

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#1787092 - 02/18/13 03:59 PM Re: Right of Rescission- Apply Dodge
biz Offline
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Joined: Nov 2005
Posts: 1,032
Midwest
Do we have an obligation, when the refi is to use monies out to purchase a new dwelling, to indicate on the RoR what dollar portion is rescindable?

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#1787096 - 02/18/13 04:14 PM Re: Right of Rescission- Apply Dodge
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
No. See the H-9 model form.
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The opinions expressed are mine and they are not to be taken as legal advice.

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