Legal Question in Real Estate Law in California
Right to Cancel on a refinance
Good afternoon!
I am refinancing my home. I live in California, however, the loan is being handled by an Arizona mortgage broker. I signed my loan documents on Saturday, January 6. The Notice of Right to Cancel form shows the loan cannot fund until after midnight of January 10th. My lender informed me that my loan funded today. Is my lender in compliance by funding the loan today? What are the implications if they are not?
Thank you!
1 Answer from Attorneys
Re: Right to Cancel on a refinance
I'm not really sure, but possibly you are confusing funding with closing. Funding simply means that the lender has deposited the funds into escrow. The three-day rescission period slows down the closing, not the funding. The money doesn't leave escrow and flow to you or the people you'll be paying until the closing.
To be sure, you should ask your escrow officer.
I would also check to see if the Arizona mortgage broker is licensed to do business in California. There have been reported problems with some out of state lenders and brokers.
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