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Learn more about the right of rescission

On Behalf of | Jul 14, 2021 | General Law |

If you obtain a home equity loan, it may be possible to cancel the deal within three business days of loan approval. The same may be true if you obtain a home equity line of credit (HELOC) or refinance the existing mortgage on your Oklahoma home.

The right of rescission aims to make borrowing more transparent

The right to cancel certain types of home loans was first granted to borrowers upon the passage of the Truth in Lending Act (TILA) in 1968. It is designed to allow individuals to escape the terms of a loan that they may have agreed to while under duress. Even if you didn’t feel pressured to borrow money from a lender, you can use the right of rescission period to confirm that you got the best possible deal.

You should receive disclosures prior to obtaining a loan

Lenders must provide you with multiple disclosures that provide details about the process of canceling your home loan. If you don’t receive these disclosures, the rescission period may be extended for up to three years. The same may be true if there are errors on any documents that you did receive. In the event that you borrowed money for business purposes, a business litigation attorney may be able to represent your interests throughout the legal process.

If you are involved in a loan dispute, it may be in your best interest to contact an attorney. This person may be able to review loan documents in an effort to determine if any portion of an existing borrower agreement was violated. Depending on the circumstances of your case, it may be possible to reach a satisfactory resolution in the matter outside of court.