A very important loan document on a refinance property is known as a “Notice of Right to Cancel” or a “Rescission” document. This form provides the borrower three days to cancel on a purchase of a primary residence. This does not include a rental or primary residence or a second home purchase. The Notice of a Right to Cancel will be included in loan documents on refinance or home equity lines of credit as well.
Form Preparation – Loan Signing Right to Cancel
It is of grave importance that this form be filled out correctly. Any mistake made on the rescission date can cause a delay in the funding of the loan. A couple of important things to know about the Notice of Right to Cancel are:
The rescission period begins three days from the day the borrower signs their loan documents. This does not include Sunday or Federal holidays. Also, the borrower must cross out and initial this form in their writing only. The loan signing agent cannot do this for them. On the Notice of Right to Cancel form or Rescission form the date needs to be written very clearly and neatly. It the lender cannot read the dates this could affect the timing of the loan closing.
I always carry a rescission calendar in my briefcase. I like to have an accurate guide to determine the exact dates of the rescission period of the loan. This provides a sure-fire way to know all the Federal holidays and will ensure the borrower will have the right date for the Notice of Right to Cancel form.
A Mobile Notary and Loan Signing Agent will always have a rescission calendar to hand and will verify the proper dates on the form. As always, a Mobile Notary Loan Signing Agent should always check their work. I never leave a loan signing without double checking my work. A missed signature on loan documents can cause a delay in funding. Also, when a loan signing is performed accurately the first time the lender, escrow, and the signing parties are all happy!
Andrea’s Mobile Notary and Loan Signing