Answer:
Answer by John Burnett: The right of rescission accrues to any consumer whose primary residence is security for a rescindable transaction. In this example, the father has a right to rescind the mortgage interest in his property. The son/husband has no rescission right, since his primary residence is not being pledged.
Answer:
Answer by Mary Beth Guard: Let me add one small point to John's answer. The consumer must actually have an ownership interest in the residence. Thus, someone whose principal residence is rental property owned by someone else would have no ownership rights and thus no rescission rights.
Answer:
Answer by John Burnett: Excellent point, Mary Beth. I had assumed an ownership interest in this case because Dad was signing the mortgage. But I have seen cases in which a non-owner had signed a mortgage deed or deed of trust out of lender error. So your point is well taken.
First published on BankersOnline.com 05/3/04
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