Real Estate
You Have the Right to Rescind
By Dan Smith

The Right to Rescind

I was reading an article in the Rocky Mountain News yesterday. They had a picture of a lady dressed in black and in mourning, but not about a death in the family. She was part of a group of people protesting the foreclosure process in general and the fact that it was happening to them. They had stormed the Denver Public Trustee’s office and invited the “media of the willing” to cover their plight. The reporter wrote that our victim had lived in her home for 10 years and indicated in the article that she had a fixed rate mortgage up until 2 years ago, but had refinanced it to an adjustable rate. Apparently the bank, World Savings in this case, was to blame because they had included a flyer in her bank statement all that time ago. She didn’t go looking for this she claimed, but it had been advertised to her. Against her better judgment she went ahead and refinanced, and now the rate was well over her initial fixed rate. It was all very sad in deed.

I am not sure how society has a whole can really help people like this I guess? I don’t know of a class at any school or university that can fix this kind of mental handicap. However I would sure like to meet the ad guy working for World Savings back then. That flyer must have been a doozy. For the rest of us though, that is exactly why the Federal law requires a 3 day right of rescission. After closing on a refinance, you have until midnight of the third day after that to change your mind. If you are concerned about the costs that have already been incurred, you needn’t be. According to this law, the lender MUST refund all fees that he or she has collected, even if they were for something like an appraisal that has already been completed. There is absolutely no risk to the consumer in this situation at all. So please…if every fiber of you being is screaming out, “No I shouldn’t be doing this!” Take those three days and listen. Get a second opinion from a different lender, or pay an accountant or lawyer to review anything you don’t understand fully. It is your right to do so and it shouldn’t be overlooked. And for those few of you that don’t know to come inside when it rains, please stop reading advertisements and taking them so seriously.

For expert advice on this or any other aspect of home finance, call the professional. Dan Smith can be reached at 303-674-0201 or visit him on the web at www.ColoradoHomeLoans.com anytime!