Borrower Buys House They Rented as Prime Res-ROR?

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Question:

If a borrower is renting a home as their primary residence and they decide to purchase the house would there be right of rescission?

Answer:

by Dan Persfull:

No. They have not acquired any partial ownership in the property similar to a deed for contract sale.

Answer:

by John Burnett:

I agree with Dan. With no current ownership by the borrower, the loan becomes a residential mortgage transaction, with no rescission rights.

First published on 01/21/2018

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