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Right to Cancel on 'Abundance of Caution' Mortgage

Answered by: 
Dan Persfull

Question: 
Is a right to cancel required when an 'abundance of caution' mortgage is taken on a personal residence? This is when the loan is clearly for personal, not business, purposes.
Answer: 

Yes. Anytime a new or increased security interest is taken on the borrower's principal dwelling for a consumer purpose the right to cancel will apply.

First published on BankersOnline.com 8/15/05

First published on 08/15/2005

Filed under: 
Lending
Security
Filed under lending as: 
Interest
Security
Security Interest
Filed under security as: 
Security
Security Interest

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