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Spring 2007-07 Rescindable loans
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Spring 2007-07 Rescindable loans

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Number 67
Spring 2007

Rescindable loans

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.

Disbursement

  • The lender may not disburse the loan until the three days have elapsed.

Expiration

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 & Cordóva, LLC