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#2173804 - 04/17/18 03:56 PM
Waive Recission-Bona Fide Emeregency
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Platinum Poster
Joined: Jan 2007
Posts: 645
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Is there a "list" of bona fide emergencies to waive rescission?
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#2173805 - 04/17/18 04:01 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Joined: Aug 2015
Posts: 756
Land Lacking in Lakes, IL
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#2173806 - 04/17/18 04:07 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Joined: Jan 2007
Posts: 645
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Thanks for the help. What would be everyone's opinion on that if the seller did not have funds at closing date, the deal would be called off? Could that pass as bona fide emergency?
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#2173811 - 04/17/18 04:19 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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10K Club
Joined: Jul 2001
Posts: 84,368
Galveston, TX
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What does the seller not having funds have to do with requiring that you expedite a loan transaction? I don't understand?
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#2173816 - 04/17/18 04:25 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Platinum Poster
Joined: Jan 2007
Posts: 645
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If the buyer doesn't have the funds at date of closing, the seller will not continue with the transaction. I feel like the loan officer/customer is reaching a little here on this one.
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#2173819 - 04/17/18 04:28 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Posts: 84,368
Galveston, TX
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I still do not understand. Now you say the buyer doesn't have funds. How does making the loan a couple of days earlier solve that issue? You mean their purchase contract is going to expire? That is poor planning and not an emergency. The only person taking a risk on allowing a waiver is the bank. Banks do not take on that risk lightly.
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#2173820 - 04/17/18 04:31 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Power Poster
Joined: Jun 2003
Posts: 7,729
Florida
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Sounds like poor planning.
I only saw one case (in 45 years) where the bank took the risk of the "emergency", and only because the applicant had given plenty of time for the transaction, but the bank "lost" the application in processing, and mentioned in an e-mail that the application was "just found" after the customer inquired several times. It was the bank's fault that the loan was not processed in ample time, and they were going to catch heck no matter what.
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#2173821 - 04/17/18 04:32 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Joined: Jan 2007
Posts: 645
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This is what happens when compliance is last one to here about these things. I'm getting it in pieces but the story is that the seller is using funds from our borrower to purchase another house and can not wait three days on their deal so our borrower is willing to waive recission. Don't think this would fly if examiner saw it.
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#2173823 - 04/17/18 04:34 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Power Poster
Joined: Jun 2003
Posts: 7,729
Florida
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mdog, it was set to fail from the beginning, as the 3 days appear to never have been considered.
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#2173824 - 04/17/18 04:36 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Joined: Jul 2001
Posts: 84,368
Galveston, TX
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This is not the consumer's emergency - end of story.
Official Interpretation
23(e) Consumer's Waiver of Right to Rescind
1. Need for waiver. To waive the right to rescind, the consumer must have a bona fide personal financial emergency that must be met before the end of the rescission period.
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#2173839 - 04/17/18 05:14 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Galveston, TX
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You know TR - that is a very good question
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#2173939 - 04/17/18 11:57 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Diamond Poster
Joined: Dec 2013
Posts: 1,399
CA
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Agreed - Imminent foreclosure in two days? Need cash out to pay for open heart surgery tomorrow or their family member is going to drop dead?
Honestly those are the only two examples I have ever heard of - anything else is not a "bona fide" emergency (even if it is in the consumer's eyes).
But as Truffle pointed out - is this a purchase?
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#2173989 - 04/18/18 02:22 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Posts: 47,680
Bloomington, IN
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Need cash out to pay for open heart surgery tomorrow or their family member is going to drop dead?
Is that a financial emergency or a medical emergency? Just food for thought.
As for the referenced transaction it could be one where the property being purchased and the existing primary dwelling are both securing the purchase loan. Or as David asked a bridge loan.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#2174002 - 04/18/18 02:40 PM
Re: Waive Recission-Bona Fide Emeregency
Dan Persfull
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For the sake of discussion, let's assume that the loan in question fits into where the property being purchased and the existing primary dwelling are both securing the purchase loan. Or ... a bridge loan. If the seller is going to walk if they don't get their money by a certain date, isn't that a financial issue for the borrower who will likely lose their earnest money and fees on the loan? (not to mention mental anguish) Anyway, I'm curious because I've been in situations where closings flip flop instead of following the natural order of sell/buy. Thankfully, none of mine had a recission involved but I'm still curious.
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#2174030 - 04/18/18 03:17 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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10K Club
Joined: Aug 2002
Posts: 47,680
Bloomington, IN
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isn't that a financial issue for the borrower who will likely lose their earnest money and fees on the loan?
Not IMO. The purchase contract spells out by when the closing must take place. If the buyer/borrower didn't begin and complete the necessary steps to meet that date then as has been said that is poor planning, not an emergency.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#2174106 - 04/18/18 05:48 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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The Swamp
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Assuming this is a bridge or similar and ROR really is required, I've seen this happen and usually the Realtors are the ones who raise the most cane. They want their money After one such fiasco, we make SURE all parties are very aware [even so far as for it to be a part of the contract] that ROR will be involved and have never had an issue with it ever again.
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#2174130 - 04/18/18 06:52 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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Joined: Aug 2002
Posts: 47,680
Bloomington, IN
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TR - regardless I'd rather defend not providing the ROR waiver then having to defend allowing the waiver, losing in court and ending up with a $250,000 unsecured loan. Especially if the borrower ends up in bankruptcy.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#2174276 - 04/19/18 04:40 PM
Re: Waive Recission-Bona Fide Emeregency
mdog76
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10K Club
Joined: Jul 2001
Posts: 84,368
Galveston, TX
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Since mdog has apparently checked out of this thread we are left only with the information provided:
" I'm getting it in pieces but the story is that the seller is using funds from our borrower to purchase another house and can not wait three days on their deal so our borrower is willing to waive recission."
This is not a financial emergency of the borrower - end of story.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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