How to Rescind a Mortgage Agreement
- 1). Make sure your mortgage allows for rescission. Mortgages that may not qualify include purchase mortgages, refinances with the same lender, and mortgages on properties not considered primary residences. Contact your lender if you are unsure whether your mortgage entitles you to a rescission period.
- 2). Make sure you are absolutely sure that you want to rescind your loan. Once you rescind, the entire loan agreement will be cancelled and you'll need to start the entire process over again, either with the same lender or with another. Double-check your reasons for rescinding.
- 3). Locate your Notice of Rescission in your loan documents. There should be a copy of this notice for each vested owner on the property, even if vested owners are not included in the loan agreement.
- 4). Make sure you are still within the 72-hour window required for rescission. The three-day period includes all business days, including Saturday, but not Sunday or major holidays.
- 5). Have all vested owners and mortgage applicants sign his or her copy of the rescission notice. Make sure to date the notice correctly, and sign exactly as you did on all other loan documents.
- 6). Double-check signatures and dates. This is a binding legal document that will officially cancel your loan. You must verify names and dates, especially middle initials, suffixes and years.
- 7). Bring all copies of the Notice to Rescind to your lender. Fax the document if necessary. If you do fax, make sure to collect a copy of the fax confirmation and contact your lender to verify that he or she received the notice. Your lender MUST take the notices--he or she cannot try to persuade you to reconsider once the notice is signed and dated. The loan is canceled.
- 8). Verify that the mortgage has been removed from your property, if it was recorded during the rescission period. Visit your city or town Registry of Deeds (most are online as well) to confirm that the mortgage is not recorded to your property.
