In a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership is or will be subject to the security interest has the right to rescind the transaction. Lenders are required to deliver two copies of the notice of the right to rescind and one copy of the disclosure statement to each consumer entitled to rescind. The notice must be on a separate document that identifies the rescission period on the transaction and must clearly and conspicuously:
" disclose the retention or acquisition of a security interest in the consumer's principal dwelling;
" the consumer's right to rescind the transaction; and
" how the consumer may exercise the right to rescind with a form for that purpose.
The Montgomery, Maryland Right to Rescind When Security Interest in Consumer's Principal Dwelling is Involved — Rescission allows homeowners in Montgomery, Maryland to cancel certain types of loans secured by their primary residence within a specified time frame. This legal protection empowers homeowners to rescind their agreement and eliminate the financial burden associated with certain secured loans. The right to rescind can be exercised if the loan in question is primarily for personal, family, or household purposes, and if the borrower's principal dwelling serves as collateral. This protection aims to safeguard consumers from abusive lending practices and ensures they have a fair chance to reconsider their decision and cancel the loan if they find themselves in an unfavorable financial situation. Under this legislation, borrowers must receive two copies of a Notice of Right to Rescind at the time of loan closing or within three business days thereafter. The notice outlines the borrower's right to cancel the loan within three business days (excluding Sundays and federal holidays) from the day the loan transaction is completed, or from the date the borrower receives the required disclosures and rescission notice, whichever is later. To exercise the right to rescind, borrowers must provide a written notice of their intention to cancel the loan to the creditor within the rescission period. This notice must be sent by mail, telegram, or other written means to ensure a verifiable record of cancellation. It is essential to note that there are specific exclusions to the Montgomery, Maryland Right to Rescind when a security interest in a consumer's principal dwelling is involved. Certain types of loans, such as those used to purchase the property, loans to construct a dwelling, or loans secured by vacation homes or investment properties, may not be eligible for rescission. Additionally, refinancing with the same creditor and obtaining additional funds are also exempt from this right. In conclusion, the Montgomery, Maryland Right to Rescind When Security Interest in Consumer's Principal Dwelling is Involved — Rescission is a powerful protection for homeowners. By exercising this right, borrowers can cancel loans secured by their primary residence within a specified time frame, allowing them to mitigate financial difficulties and regain control over their financial future.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
