Definition of Rescission Notice:
Rescission Notice in Orange County, Ca:
A form buyers sign if they back out of an offer on a home. The buyer's agent MUST submit this form to the listing agent so the sellers know the deal is off. Most often, these forms are used after an offer has been accepted and the Purchase and Sale Agreement is signed by both parties. But, buyers may also issue a rescission notice during negotiations if they want to make an offer on another home. They should be able to get their earnest money back if they pull out of the deal before the contingency periods expire.
Right of Rescission as it applies to Orange County Mortgages:
The right of rescission is only available for refinance and HELOC’s (or traditional 2nd mortgages) in which the borrower is given a three-day ‘cooling off period’ however these are not available for all mortgages. Most importantly, there is no right of rescission for a mortgage made to buy a house, after the borrower has signed the loan documents they CAN’T CANCEL – although you would be hard-pressed to find any bank, lender or mortgage broker who would try and force-feed the loan down a borrower’s throat!