Rescind a Mortgage Closing on an Investment Property

Can you resind a mortgage closing on an investment property?

1 Answer

No. Investment property loans are not subject to a 3 day right of rescission. A 3 day right of recission, or the right to cancel a loan you have signed for up to 3 days after signing, does not apply in certain instances. The most basic definition is that right of rescission applies on owner occupied refinance loans. It does not apply on owner occupied purchase loans, or on non-owner occupied (investment) loans of any type.

A borrower is also not protected by right of rescission on a 2nd home or vacation home loan. In cases where a right of rescission does not apply, once transaction is recorded with your county it is typically non-retractable. You should always review your closing documents prior to signing anything to make sure you are comfortable with, and understand the terms of the loan you are signing on all transactions, but specifically on non-rescindable loans.