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Right of Rescission and Primary Residence

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We are in the process of doing a bridge loan application, using town A residence as collateral to purchase town B residence. We will not be doing the permanent financing. The real estate purchase closing and the loan closing for that purchase will both take place at the same time. They literally will be moving to residence B within a few days of closing (and they could be moving possibly the same day - the trailer is loaded and ready to go). Residence A has a purchase agreement signed by the prospective buyers and that will close next month. What is your opinion on right of rescission? Is residence A the primary residence, or can we treat residence A as their secondary residence since it really will not be their primary residence as of closing or at least within a few days after closing.

First published on 08/16/2010

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