- Do you have doubts about your mortgage loan? Well, you have the right to cancel it, but only before the signing of the closing documents. At GlobeLiveMedia we explain all the details
In general, mortgage loans in the United States entail several steps to be executed, and there is, in fact, a moment in which the borrower can exercise his right of rescission, a prerogative that allows him to cancel the mortgage loan before be executed.
In other words, the borrower has the right to cancel said loan, but only in the moments prior to the signing of the closing documents – the closing of a mortgage is understood as the moment in which all the parties sign the necessary documents to carry out the closing. operation and start the disbursement of the loan funds—-.
According to information released by the Consumer Financial Protection Bureau (CPFB), the buyer does not have the right to cancel the loan after the closing documents have been signed.
However, it should be noted that the borrower must receive certain documents so that the closing of the mortgage is within the legality, among which is:
1) The disclosure of truth in loan.
2) The notice of right to rescind by the lender.
If as a borrower he was entitled to receive these documents and did not obtain them, there is a possibility that he can cancel the mortgage loan.
The CPFB recommends, in these cases, to consult a specialized lawyer in case you make this decision, and you must remember that you will have to repay the money you have borrowed if the loan is cancelled.
If I don’t agree with the terms of the mortgage agreement at closing, do I still have to sign it?
The CFPB advises all American consumers not to sign any document that contains terms you are not satisfied with, has aspects you do not understand, or if you believe it contains provisions that you will not be able to comply with.
Therefore, before making the right to rescission, it is best that you review the mortgage loan contract with the specialized advice of a lawyer.
It should be noted that any loan application for the purchase of a home implies, in most cases, a contract with the seller of the property, and that this contract may establish a limited amount of time, as well as a certain level of flexibility, to close the sale. Therefore, the seller of the house could subject you to legal action if you do not comply with the parameters of said contract.
The CPFB reminds that, in case you have had a problem with your mortgage, you can contact this federal body at number (855) 411-CFPB (2372) and file a complaint. In this way, the CFPB will communicate this complaint to the company that issued the loan and will work to find a solution to your problem.