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In Response To:
Thread Starter: Dan Persfull
Title: Re: HELOC - Right to Cancel Not Provided

The spouse with "marital interest" signed the Deed of Trust.

That statement does not define if "marital interest" is referring to state dower rights or if they are shown as a property owner on the deed. Signing the DOT/Mortgage does not necessarily show ownership.

If they do have an ownership in the property with rescission rights then as Skittles said that spouse has 3 years to rescind any advances (from the date of the advance) made against the HELOC.

Going forward you could provide a Right to Cancel Notice to that spouse each time an advance is requested which would delay the advance for 3 business days. Not doing so gives that spouse 3 years from the date of the advance to rescind it. How you make that delivery and/or track it is going to be a nightmare.

You may want to talk to the bank's legal counsel that is versed in Reg. Z to see if they could possibly draw up a rescission notice that can be given to the affected spouse that will cover future advances from that date.