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.
New Mexico Right to Rescind When Security Interest in Consumer's Principal Dwelling is Involved — Rescission In New Mexico, consumers are granted certain rights when a security interest in their principal dwelling is involved. One of these important rights is the right to rescind a transaction within a specific timeframe if the consumer determines that they no longer wish to proceed. The right to rescind in New Mexico applies specifically when a security interest is established or retained on the consumer's principal dwelling during a credit transaction. This protection is provided under the Truth-in-Lending Act (TILL) and Regulation Z. Key factors to consider when exercising the right to rescind in New Mexico include understanding the timeframe within which the consumer can exercise this right, the process involved, and the consequences for both the consumer and the lender. 1. Timeframe for Exercising the Right to Rescind: Consumers have a three-business-day window to rescind a transaction involving a security interest in their principal dwelling. This period typically begins once all necessary disclosures have been delivered to the consumer. 2. Process for Exercising the Right to Rescind: To exercise the right to rescind in New Mexico, the consumer must notify the lender or creditor in writing about their decision to cancel the transaction. The notice must be sent within the prescribed timeframe and include relevant details such as the consumer's name, address, and the loan account number. 3. Consequences of Rescission: Once the consumer exercises their right to rescind, the transaction becomes void. The lender or creditor must then return any money or property received from the consumer as part of the transaction. Simultaneously, the consumer must return any funds or property received from the lender. It is important to note that there are certain exceptions to the right to rescind in New Mexico. For example, if the consumer is refinancing with the same lender, the right to rescind does not apply. Additionally, if the transaction involves emergency repairs or situations related to the consumer's health or safety, the right to rescind may not be applicable. In summary, the New Mexico Right to Rescind provides consumers with a valuable protection when a security interest in their principal dwelling is involved in a credit transaction. The three-business-day window allows consumers to carefully review and reconsider their decision, rescinding the transaction if they deem it necessary. Understanding the process and requirements of this right is crucial to ensure the consumer's financial and legal well-being.
