According to 12 CFR 226.23, in a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction, with some exceptions. To exercise the right to rescind, the consumer shall notify the creditor of the rescission by mail, telegram or other means of written communication. Notice is considered given when mailed, when filed for telegraphic transmission or, if sent by other means, when delivered to the creditor's designated place of business. The consumer may exercise the right to rescind until midnight of the third business day following consummation, delivery of the notice
required by paragraph (b) of this section, or delivery of all material disclosures, whichever occurs last.
Maryland Notice of Right of Rescission or Right to Cancel is a legal document that provides homeowners with the ability to cancel or rescind certain mortgage agreements, liens, or security interests on their residence within a specific timeframe. This notice safeguards the interests of borrowers and allows them the opportunity to reconsider their decision or seek alternative options. Under Maryland law, there are several types of Notice of Right of Rescission or Right to Cancel: 1. Maryland Notice of Right of Rescission for Refinance Transactions: This notice applies to homeowners who are refinancing their existing mortgage on their primary residence. The borrower has a right to cancel the loan within three business days after the transaction is consummated or after receiving all necessary disclosures, whichever occurs later. 2. Maryland Notice of Right of Rescission for Home Equity Lines of Credit (HELOT): In the case of Helots, borrowers have a right to cancel the loan within three business days after the transaction is consummated or after receiving all necessary disclosures, whichever occurs later. This notice is specific to homeowners who are obtaining a line of credit against the equity in their primary residence. 3. Maryland Notice of Right to Cancel for Foreclosure Rescue Transactions: This notice is relevant to homeowners who enter into foreclosure rescue transactions, which involve the sale or transfer of a distressed property. The borrower has a right to cancel the transaction within five business days after signing the agreement or after receiving all required disclosures, whichever occurs later. It is crucial for borrowers to carefully review and understand the terms and conditions outlined in the Maryland Notice of Right of Rescission or Right to Cancel regarding Mortgage, Lien, or Security Interest on Borrowers' Residence. This notice grants them the opportunity to reconsider or seek legal advice before finalizing any agreement affecting their residential property. Non-compliance by the lender or failure to provide the required notice may extend the cancellation period or create other legal remedies for the borrower. It is advisable for borrowers to consult with a qualified attorney or professional for guidance on their specific situation.
