Financing Purchase of Real Estate Contract

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Question:

Is a mortgage transaction subject to right of rescission under the following scenario? A Customer is buying a property on contract, does not currently live in the property, but intends to live in it at "some point" in the future.

Answer:

No. This would be a refinancing under Reg Z, and because the "property" (which I assume also includes a residential dwelling) is not currently the primary residence, the ROR would not apply.

First published on BankersOnline.com 2/6/06