Rescission?

Posted By: mmason

Rescission? - 09/04/18 08:15 PM

Here's the scenario: Currently friend 1 and friend 2 own a property together. The bank has two applications individually from each one. Friend 1 is applying to refinance existing property and remove friend 2 from the mortgage and the deed (procedure is to give ROR since individual already has ownership). Friend 2 has applied to purchase a new home. Friend 2 needs to close ASAP because the seller's health is failing, but can't close until removed from existing lien. Friend 1 wants to waive ROR. Should the bank allow the waiver?
Posted By: Dan Persfull

Re: Rescission? - 09/04/18 08:19 PM

How is that a financial emergency for Friend 1?
Posted By: NSF, CRCM

Re: Rescission? - 09/04/18 08:55 PM

You didn't specify this in your post. But is this Friend 1's principal residence?
Posted By: Truffle Royale

Re: Rescission? - 09/05/18 03:37 AM

If your bank holds the current mortgage, you have the ability to release Friend #2 from it prior to Friend #1 paying it off. That will allow #2 to go to closing asap.
Posted By: mmason

Re: Rescission? - 09/05/18 03:16 PM

Thank you for the feedback. Dan, my first thought was the same as yours, once I clarified who was doing what. It is the principal residence of Friend 1, but I hadn't thought about the option of releasing Friend 2 now. Thank you again.