Thread Options
#2219295 - 08/07/19 09:07 PM Right to Rescind Loan Pays off Bridge Loan
Annie Offline
Junior Member
Joined: Sep 2018
Posts: 25
A borrower takes out a cash-out refinance loan secured by his primary residence. The purpose of the loan is to build a new primary residence. No security interest is taken on the property under construction at that time. I understand that the refinance loan is subject to rescission. Once the property is built and ready to occupy, the borrower takes out a loan on the new build to pay off the refinance. Would this new loan be subject to rescission?

Return to Top
Lending Compliance
#2219306 - 08/08/19 11:28 AM Re: Right to Rescind Loan Pays off Bridge Loan Annie
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,216
Galveston, TX
Yes. It is a cash out loan on their new house to pay off another loan secured by other property.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  Andy_Z