Topic: Right of Rescission (ROR)
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We received a bulletin indicating that there has been a change in Illinois law regarding non-titled spouses. What is that change, and are non-titled spouses required to sign homestead waivers and notices of the right of rescission?
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There have not been any amendments to the Illinois law governing homestead rights since 2005, so the change in Illinois indicated likely refers to the new civil union law, which became effective June 1, 2011. Under that law, every reference to “spouse” in any Illinois statute is now deemed to include a “party to a…
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Does the right of rescission (ROR) apply to a home equity line of credit secured by an Illinois land trust?
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In our view, such a customer would have a right of rescission if his or her interest in the land trust is subject to the security interest. Regulation Z provides a right to rescind to “each consumer whose ownership interest is or will be subject to the security interest . . . .” 12 CFR 1026.15(a). This right to…
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If a wife takes out a HELOC on the couple’s primary residence, does the husband get a notice of right of rescission and sign the homestead waiver, even if he does not own the property?
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The husband does not receive a notice of the right of rescission, but the husband should sign the homestead waiver. The right of rescission only applies to persons with an ownership interest in the property. Having homestead rights only does not give rise to rescission rights. However, a spouse must sign the homestead waiver or…