Right of Rescission
Right of Rescission is the right that exist in some mortgage transactions, like in refinances of existing mortgages when refinancing is done with lender other that the original mortgagee, in home-equity credits and home-equity loans.
Right of Rescission gives the borrower the right to change his mind during the three days cooling period with no questions being asked. By doing so, the borrower has the right to recover claimed property and initial fees back within twenty days of the rescission.
Right of Rescission is created in order to protect the borrowers from deceitful lenders.
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