Posted by Anonymous on 9/22/05 8:42am
Msg #66623

HELOC Ln without RIGHT TO CANCEL FORM???

I have a HELOC on an Ohio property - closing is in NC but the package did not come with a 3 day right to cancel form. I thought this was Federal and I have not seen a pkg without one but I am pretty new at this.

Does anyone have suggestions?

Reply by MistarellaFL on 9/22/05 8:45am
Msg #66625

HELOCS's are exempt from RTC. I cannot tell you why, but I am sure someone here with more experience will explain the legalities.

Reply by Anonymous on 9/22/05 8:53am
Msg #66627

RTC applies to primary residence

Reply by Art_MD on 9/22/05 8:54am
Msg #66629

I don't think the statement that helocs are exempt from RTC is true. But, if the property is a non primary residence, it is exempt from the RTC requirement.

Art

Reply by Anonymous on 9/22/05 8:59am
Msg #66632

THANK YOU FOR THE INFO

Nice to have so many knowledgable people that are happy to help!!!
THANKS!

Reply by PAW_Fl on 9/22/05 9:16am
Msg #66637

A couple of possibilities: (1) not primary residence (most likely) and (2) not a change or increase in an existing plan.

The following is an excerpt from Section 12CFR226.15:

Sec. 226.15 Right of rescission.

(a) Consumer's right to rescind. (1)(i) Except as provided in paragraph (a)(1)(ii) of this section, in a credit plan in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind: each credit extension made under the plan; the plan when the plan is opened; a security interest when added or increased to secure an existing plan; and the increase when a credit limit on the plan is increased.

(ii) As provided in section 125(e) of the Act, the consumer does not have the right to rescind each credit extension made under the plan if such extension is made in accordance with a previously established credit limit for the plan.