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.
In Mississippi, the Notice of Right of Rescission or Right to Cancel is a crucial document related to mortgages, liens, or security interests on borrowers' residences. This notice provides homeowners with the ability to cancel or rescind certain types of loans within a specified timeframe, ensuring their protection and granting them the opportunity to reconsider their commitment. Let's explore the various types of notices that encompass the Right of Rescission or Right to Cancel in Mississippi. 1. Mississippi Notice of Right of Rescission for First Mortgages: This notice applies to borrowers who have taken out a first mortgage loan on their primary residence. It grants them the right to cancel their mortgage agreement within three business days from the loan closing date, excluding Sundays and legal holidays. 2. Mississippi Right to Cancel for Refinanced Mortgages: During the refinancing process, when homeowners take on a new mortgage to replace an existing one, borrowers receive the Right to Cancel notice. This notice allows borrowers to cancel the refinancing mortgage transaction within three business days from the closing date, except Sundays and legal holidays. 3. Notice of Right of Rescission for Home Equity Loans or Lines of Credit: When homeowners secure a home equity loan or open a home equity line of credit (HELOT) on their primary residence, they receive the Notice of Right of Rescission. This notice enables borrowers to rescind or cancel the loan within three business days from the date of closing or when they receive all required disclosures, excluding Sundays and legal holidays. 4. Right to Cancel for Second Mortgages or Junior Liens: This notice applies to borrowers obtaining a second mortgage or junior lien on their residential property. It grants them the right to cancel the loan within three business days from the closing date or when they receive all necessary disclosures, excluding Sundays and legal holidays. It is important to note that the Right of Rescission or Right to Cancel in Mississippi only applies to loans secured by the borrower's primary residence, ensuring homeowners have additional protection and an opportunity to reconsider their financial commitments. Borrowers must carefully review the terms and timelines specified in the relevant notices to exercise their right to cancel effectively and protect their legal rights.
