We are financing a foreclosed property. The consumers who are purchasing were those foreclosed upon, they were able to get the bid at the Sheriff's Sale. The foreclosure was not from our bank. They are coming to us to finance. The initial owners were never evicted and are still living on the property. My question is, would Right of Rescission apply? If the title work shows they do not have ownership, I would think it would be a true purchase, but if there name is still on the title would we treat it as a refinance and therefore rescindable? Maybe I'm looking in all the wrong places but not pinning this one down anywhere. THANK YOU!!!

If their names are still on the title, then you have a whole lot of other problems.

If their name is not on the title, they do not have the right to rescind.

Interesting niche market you have there