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#2259055 - 08/31/21 08:08 PM Reg. Z: Rescission
Oly78 Offline
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Joined: Aug 2006
Posts: 131
I have a question about whether a transaction is rescindable. Let’s say Bob Smith owns a dwelling, but it is not his principal dwelling. It will be, however, the principal dwelling of Jack and Jill Jones. Jack and Jill will not have any ownership interest in the property, they will only live there. Jack and Jill took out a temporary loan secured by Bob’s dwelling (Bob signed the mortgage), the purpose of which was to remodel the dwelling for Jack and Jill. Now, Jack and Jill wish to refinance the temporary loan into permanent financing, along with new money to complete the remodeling project. Bob will again sign the mortgage, because he is retaining ownership of the property. Our borrowers, Jack and Jill will live there, and will make the mortgage payments, but they will still not have an ownership interest in the property. My question: Is this loan rescindable? I say no, but I'm second-guessing myself. Thank you for your help!

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#2259064 - 08/31/21 08:56 PM Re: Reg. Z: Rescission Oly78
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,371
Bloomington, IN
(a) Consumer's right to rescind. (1) In a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction, except for transactions described in paragraph (f) of this section.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2259067 - 08/31/21 09:37 PM Re: Reg. Z: Rescission Oly78
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 9,987
Toano, VA
Originally Posted by Oly78
Bob Smith owns a dwelling, but it is not his principal dwelling
With regard to RoR, you can stop right here. NO loan to anyone associated with this property can be rescindable.
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...gone fishing.

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#2259078 - 09/01/21 01:10 PM Re: Reg. Z: Rescission Oly78
Oly78 Offline
100 Club
Joined: Aug 2006
Posts: 131
I was definitely second-guessing. Thank you!

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