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#34734 - 09/26/02 03:50 PM Right of Recission

Does a right of recission need to be given if you are only refinancing a loan with no new money, except additonal fees will be financed?

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General Discussion
#34735 - 09/26/02 04:11 PM Re: Right of Recission

Yes, unless the lender changes. Then rescission applies.

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#34736 - 09/26/02 04:23 PM Re: Right of Recission
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,839
Bloomington, IN
Same lender + same borrower = No, as long as the only money being advance is to cover the closing costs associated with the current transaction.
The opinions expressed are mine and they are not to be taken as legal advice.

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#34737 - 09/26/02 04:59 PM Re: Right of Recission
Tina A Sweet Offline
Diamond Poster
Tina A Sweet
Joined: Aug 2001
Posts: 1,033
Marysville, Ca.
This may help:

(f) Exempt transactions. The right to rescind does not apply to the following:

(1) A residential mortgage transaction.

(2) A refinancing or consolidation by the same creditor of an extension of credit already secured by the consumer's principal dwelling. The right of rescission shall apply, however, to the extent the new amount financed exceeds the unpaid principal balance, any earned unpaid finance charge on the existing debt, and amounts attributed solely to the costs of the refinancing or consolidation.
Tina A Sweet-Williams
AVP Special Assets

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