The following circumstances must be present in order for a loan to be rescindable:
- The borrower must be an individual.
- The purpose of the loan must be personal, family or household.
- The loan must be secured by a mortgage.
- The mortgaged property must be the principal residence of its owner.
- The purpose of the loan may not be to finance the purchase of the property.
Computation of the three-day "cooling-off" period
- Must be three full days (from 12:01 a.m. to 12:00 p.m.)
- Saturdays are counted.
- Sundays are not counted.
- Federal holidays are not counted; Puerto Rico holidays are.
- The lender may not disburse the loan until the three days have elapsed.
The right to rescind expires on the earlier of:
- three years from the date of disbursement, or
- when the house is sold.
© 2007 Goldman Antonetti & Cordova, LLC