The Right of Rescission When a Party in Interest is Not on the Deed
Issue/Inquiry
The Bank made a mortgage loan to refinance an existing mortgage loan from another lender. The property securing the loan, which is located in New Jersey, is the principal residence of a married couple, but only one of them is on the deed. The Bank had the spouse who is on the deed execute the note and both spouses executed the mortgage; however, only the spouse who is on the deed was provided with a Notice of Right to Cancel. If the spouse who is not on the deed has the right to rescind, what should the Bank do to correct the situation? What other disclosures should that person receive other than the Notice of Right to Cancel?
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