We have an open-end line of credit secured by a dwelling. The owners of the dwelling, who are the original borrowers on the open-end line of credit, want to quit claim ownership of the dwelling to a revocable trust they have created. A modification of the Note is being executed, but there are no terms changed or extended and the borrowers have stayed the same. The Modification Note will say under Security: The security provision is modified to read: Existing Collateral Added. The following previously executed security instruments or agreements are added as security for the Amended Obligation: Deed of Trust dated 10.14.2016.
This deed of trust mentioned in the Modification Note is the original deed of trust securing the original HELOC. The attorney advised that it did not need to be amended/modified, that the quit claim deed would be sufficient and that we would maintain our security interest in the dwelling and current lien position.
Does right of rescission apply, and if so does only the revocable trust have the right to rescind?
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