Notice of Right to Rescind
Posted on April 5th, 2011
One of the most common documents a borrower may encounter is the “Notice of Right to Cancel”. This document is also referred to as the “rescission document” or the “3-day Notice of Recession.” This notice will be found in the loan document package, and it states that the borrower can cancel or rescind their loan transaction within three business days after signing the loan documents. Borrowers get confused as to when the right to cancel applies, and if so, exactly what day the borrower can rescind their approval of the loan transaction.
The right to cancel applies to refinances or “home equity lines of credit” on a borrower’s “Primary Residence.” The right to cancel does not apply to borrowers who are purchasing a home, borrowers who are refinancing their second home or on investment property or rental properties.
There are two important dates on the document. The first is the date of signing. The second is the rescission date, or final date to cancel. When the lender prepares final loan documents for an anticipated signing, the lender may indicate these dates by printing them in advance for the borrower on the Notice of Right to Cancel. However, many lenders prefer to leave the dates blank on the document because the exact date of signing may not be known. In this case, the lender may print instructions on the document for determining the correct dates, or the lender may insert an instruction sheet into the loan package with the Notice of Right to Cancel.
The borrower has the right to cancel until midnight on the third day after signing. To determine the correct rescission date after signing, you will count three days beginning with the first day following the signing date (the transaction date is not counted). Sundays and legal federal holidays are not counted, and are therefore skipped. Saturdays are counted because banks conduct lending business on this day.
Tags: Right, Right Rescind
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First-Time Landlord: Your Guide to Renting Out a Single-Family Home with Janet Portman
Posted on April 5th, 2011
On this episode of the Creating Wealth Show, Jason Hartman talks with author and editor, Janet Portman, about becoming a landlord. Whether or not you call yourself a “landlord,” when you rent out a house, you’ll want to do it right!
Portman oversees editorial work on all Nolo books and software. She is the author or co-author of Every Landlord’s Legal Guide, Every Tenant’s Legal Guide, and LeaseWriter Plus software, plus six other books, all published by Nolo.
As an expert in legal issues related to landlords and tenants, Portman has appeared on national television and radio and has been quoted in the New York Times, Wall Street Journal, Kiplinger’s, Smart Money, the Los Angeles Times, and other publications. She has als
Tags: Janet Portman, Portman
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Help For Unemployed Homeowners
Posted on April 4th, 2011
By July 1, 2010 all mortgage service providers participating in the Making Home Affordable Program will offer extra help for homeowners struggling to make their monthly mortgage payments because of unemployment. The Unemployment Program will offer homeowners a forbearance period to temporarily reduce or suspend their monthly mortgage payments while they seek re-employment.
The minimum forbearance period is three months, although a mortgage service provider may extend it depending on the investor and regulator guidelines. If a homeowner becomes re-employed in that time, the forbearance period will end and the homeowner will be evaluated for a mortgage modification under the Making Home Affordable Program.
Tags: Homeowners
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Hi Everyone
Posted on April 2nd, 2011
Hi everyone, I created my page to get to know everyone and share some tips and techniques about real estate. Right now in the California market, a lot of my clients are investors. One thing they look for a lot is hard money lenders to help finance their purchases. There are so many deals to be found but sometimes it can be hard selling them. But with enough marketing it’s all possible. The great thing is I have good connections with banks so I get to list the REO’s and sell them to investors, then some investors list with me to sell again. Sometimes they have real estate licenses’ and do it all themselves but not all the time.
Short Sales; Working with the Banks is getting Easier
Posted on April 2nd, 2011
Northern California real estate agents are seeing increased cooperation from the banks with regard to Short Sales. Realtor David Allen Rivas out of the Century 21 M&M Sunnyvale office says, “I am finding that banks are actually postponing the sales date and allowing short sales to close instead of following through with foreclosure.”
“Here in the Bay Area, home equities did not get hit as hard as in other areas, and oftentimes homeowners are only upside down $40,000 to $50,000. Even so, I am seeing the larger banks allow short sales to close instead of going forward with foreclosure,” says David.
The last couple of years have been especially difficult for Realtors in Northern California. The ban
Tags: Banks, Short Sales
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