Legal Question in Credit and Debt Law in Illinois

rescission

Hi,

I have a closing on my mortgage refinance in about a week .. if the fees on the closing document are different from the �Good faith estimate� I got from the bank .. can I refuse to close the deal and do a rescission? I am assuming that I will need to pay any penalty to the lender for locking my interest.

The reason I am asking is that my mortgage bank is from another city and I was talking to my mortgage person recently, he was not sure about the title insurance in my city so I am a little afraid that the values he gave me are really approximate.

And I did choose this bank because their closing costs were about $400 less than other banks.

Thanks,


Asked on 1/18/09, 1:42 pm

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: rescission

You cannot rescind until after you close (and you must rescind within three business days of your closing). There would be no penalty if you rescind. Keep in mind that the word "estimate" is included in the name "Good Faith Estimate." There are lawful tolerances of error. In Illinois, you may shop around for title insurance and select any agent you choose. You are not required to use the lender's selection.

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Answered on 1/22/09, 1:02 pm


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