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Posted by VonMots on 10/16/18 9:28pm
To start with, I did do a search for this topic and found some talk of this from 2007; just wondering if there is any current thought on this subject.
I have a HELOC loan package with a 3-Day Right-To-Cancel, but included with the docs is a "Notice of Non-Cancellation" that the lender is asking the borrower to sign and post-date for AFTER the 3-day rescission period, stating the rescission period has expired and they have not cancelled the loan. Instructions provided to me by the signing service state that if the borrower refuses to sign this document, funding could be delayed.
A review of California Code of Regulations, Title 10, Chapter 3, Sub-Chapter 6, Article 4, Section 1450, states in part, "No finance company shall predate or postdate any documents in connection with making or renewing any loan."
I don't plan on giving any legal advice to the borrower, but it is just seems to place the Signing Agent in a legal pickle if the borrower does sign and post-date this document, then decides to cancel within the 3-Day rescission period. The lender will have conflicting documentation holding the buyer accountable for a loan that he does not want. If this were to go to court, the borrower can say that he just signed the documents that the Signing Agent presented to him...
Any thoughts...?
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