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3 Day Right of Rescission on 2nd Owelty Deed?

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Question: 
Would a 3 day Right of Rescission apply on a second lien Owelty Deed for a Divorce situation?
Answer: 

I'm not sure what Owelty Deed is but when a loan is being refinanced due to a divorce settlement or paying off a contract for deed the rescission rules apply. Refer to the Commentary for 1026.2(a)(24).

[Editor's Note: Is your curiosity aroused? "Owelty" is defined at Dictionary.com as a "lien created or a pecuniary sum paid by order of the court to effect an equitable partition of property (as in divorce) when such a partition in kind would be impossible, impracticable, or prejudicial to one of the parties." Owelty deeds are most often used in the event of divorce or a partnership buy-out. The owelty concept is not found in the laws of all states.]

First published on BankersOnline.com 10/1/12

First published on 10/01/2012

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