I recently recieved a loan from Capital One online to refinance my home. after they paid off my past Lein holder and credit cards they told me that they had failed to give me 3 full days notice of right to cancel. They quickly sent me Fed Ex document to sign and turn back in immediatley. Are they in the wrong to get me to sign the form after the loan was processed . Any info would be appreciated, Thanks!
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They messed up but they fixed it. If you wanted to back out and hadn’t been told you have three days to change your mind you could have refused to sign the document but since they already paid off your creditors they would have to try to collect the money from you.
This is a moot point if you have no intention to cancel. You should have received the form when the loan closed.
Did you sign it? Then…you’re stuck with the loan.
And you would still owe the money that they’ve paid out on your behalf.
what’s wrong with Cap One? I refy’d with them and they did a wonderful job.
Yes they are!! They are in violation of RESPA!!!! The federally mandated act, (monitored by the FTC…Federal Trade Commission) that requires a 3 day right of rescission on any re fiance loan, with exclusion to HELOC’s and commercial loans!! OOPS…they messed up…If you are not happy with what Capital One did with your loan, you can seek counsel (especially in the secondary market fall down time) to negate the refinance, and continue paying your current mortgage company….OR if you are happy with what they did for you, sign the rescission notice and move on.
Doesn’t sound like the 3 day notice would have meant anything to you so don’t get tore up about it. They make mistakes show them some grace.
The Right of Rescission is provided by the Truth in Lending Act not RESPA.
Not all mortgages come with the three day right; only refinances of owner occupied primary residences, the draw amount on a non purchase money HELOC, and if refinancing (cashout)with the same lender of the current mortgage… the cash out portion.
The right of rescission clock begins after the docs are signed, the borrower receives all loan disclosures and receives two copies of the notice that a rescission period exists.
So in your case the three days started after you received the Fed Ex notice. To rescind you would had to return all funds to the new lender.
Go ahead and sign it…and put the CURRENT date on it of when you ACTUALLY signed it….I’ll tell you why.
If they have it pre-dated for the DAY OF CLOSING…call them and tell them that you are going to refuse to sign a document that is backdated, and you 100% have that right.
DO NOT let them strong-arm you into telling you that you have to sign a backdated document…b/c you don’t…this is considered a MAJOR screw up and they will do anything to fix it and say anything to get you to sign it for the date of closing.
Truth in Lending Act requires DISCLOSURE of a 3-day right of recission on a refinance of your primary residence. That means that 3 days after you close on the house, you had the right to change your mind and all fees regarding the refinance must be returned to you.
The notice is a required document.
However….here is what is in your favor.
Since they did not have you sign the right-of-recission on the DAY OF CLOSING….you now have A THREE YEAR right of recision….the DATES MUST MATCH the day of closing or the 3 year…..NOT the 3 day rule…applies.
That is why you sign what they sent you with the CURRENT date. Again, the dates the closing vs the recision disclosure were signed is CRITICAL.
No, they didn’t ‘FIX IT’ by sending you the doc…b/c you were supposed to get it on the day of closing…that is the whole purpose of the document.
Here is a link that explains it…it’s from an Indiana gov’t website, but it doesn’t matter because the law is FEDERAL, so it is the same in every state.
http://www.in.gov/dfi/education/right_of_recission.htm