Legal Question in Real Estate Law in Illinois

After the Closing

I was told by a Home Mortgage repesentative that after a Closing, you have a 3 day rescission period. I realize that is true. After that period the mortgage company has technically one (1) month to release funds. Is that true?


Asked on 11/01/05, 4:35 pm

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: After the Closing

The three day recission period ONLY applies for a REFINANCE of your existing RESIDENCE. Purchases--you have no right to cancel. Rental property--no right to cancel. Funds from the refinance should be disbursed on the fourth business day from your closing. For example, close on Monday, disburse on Friday. Saturday counts, Sundays and bank holidays do not. If you are referring to when your old mortgage company must release any tax or insurance escrow funds to you, then yes, they must do that within 30 days of their receipt of the mortgage payoff.

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Answered on 11/01/05, 4:52 pm


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