right to recsind (wisconsin)

[muskie]

wisconsin

Hi,
My wife and I signed papers for a home equity loan. Before this I signed a paper stating that I would pay for the appraisal and loan filling fees. After further consideration we used our "right to recsind".
According to the "right to recsind" law I'm not responsible for any charges that were accured. Our loan officer at that bank is the one who told us the paper that we signed isn't worth the paper it was written on. PLEASE HELP!
Steve

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by muskie:
wisconsin

Hi,
My wife and I signed papers for a home equity loan. Before this I signed a paper stating that I would pay for the appraisal and loan filling fees. After further consideration we used our "right to recsind".
According to the "right to recsind" law I'm not responsible for any charges that were accured. Our loan officer at that bank is the one who told us the paper that we signed isn't worth the paper it was written on. PLEASE HELP!
Steve<HR></BLOCKQUOTE>


Hello Steve:

Before I can attempt to assist, I need you to write the exact statement in the contract obligating you, concerning: "I would pay for the appraisal and loan filling fees."

Then, I need to know what you believe to be the "right to rescind" law - - the number of the Wisconcin Statute would be terrific.

You also said:

"Our loan officer at that bank is the one who told us the paper that we signed isn't worth the paper it was written on."

I need to know what "paper" you are referring to, what it said, and most importantly, who gave you the "paper."

You see, here in California, in the case of competent adults, the only "right to rescind" law that we have is for "Home Solicitation" contracts. For example, if a vaccuum saleman, or encyclopedia salesman comes knocking at my door at home, and I decide to by their product, I have 72 hours to "cancel" any contract of purchase. However, if I go to the store to buy a vacuum or set of books, I do not have that right. There are no laws that cause a merchant to "take back" what I buy at a store, although in most cases they do - - but that's only due to "good will" and not because of a law that says they must.

In other words, if you physically went to a bank to sign papers (or anywhere out of your home), there is no "right to rescind" in California, except in the case of undue influence or fraud.

Waiting for your response.

IAAL


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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."

 

[muskie]

Hi,
The paper I signed states the following:
I/we understand that a professional appraisal ofmy residence is required as part of my loan application.

I/We understand that the lender , prior to approval of my loan, require a comprehensive credit report.

I/We also realize that if the loan is not approved, or I/We cancel the application, I am (we are) still liable for the cost of the appraisal and credit report.

I got the following information from this site:http://www.vplc.org/home.htm

If you cancel the contract, the security interest in your home is also cancelled, and you are not liable for any amount, including the finance charge. The creditor has 20 days to return all money or property you paid as part of the transaction and release any security interest in your home. If you received money or property from the creditor, you may retain it until the creditor shows that your home is no longer being used as collateral and returns any money you have paid. Then, you must offer to return the creditor’s money or property. If the creditor does not claim the money or property within 20 days, you may keep it.

Oh, I never did receive a written appraisal..the mortgage company told me what the amount was....


Steve

 

[muskie]

We did sign in our home...

Steve

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by muskie:
We did sign in our home...

Steve<HR></BLOCKQUOTE>


My response:

I went to the site re: "Rescision." Now I see where you made your mistake.

The first line of the Rescision Law says:

"If you’re considering applying for a PERSONAL LOAN and using your home to guarantee repayment . . ."


You got your definitions mixed up.

A "Personal Loan" is one where the bank loans you money based on the value of your home; e.g., your equity in your home is $25,000 and you want to borrow $5,000.00 for a car. In this instance, you are merely putting your home up as collateral ("to guarantee repayment"), and not touching your present mortgage contract or taking any equity out. If you default, they sell your home.

The Rescision Law does NOT include "home equity" loans. In a home equity loan, your home is refinanced. Say you have a $100,000.00 valued home, and you have $10,000.00 equity, leaving you with a $90,000.00 balance on your mortgage. You want that new car for $10,000.00. The bank refinances your home for $100,000.00, and gives you a check for $10,000.00 (your "equity"). If you default on your new mortgage payments, they sell your home.

Your State does not recognize "Home Solicitation Contracts" or as your State calls them, "Consumer Approval Transaction," insofar the sale and purchase of homes are concerned:

"423.201 Definition. "Consumer approval transaction" means a consumer transaction OTHER THAN a sale or lease or listing for sale of real property or a sale of goods at auction 1) which is initiated by face-to-face solicitation away from a regular place of business of the merchant or by mail or telephone solicitation directed to the particular customer and 2) which is consummated or in which the customer's offer to contract or other writing evidencing the transaction is received by the merchant away from a regular place of business of the merchant and involves the extension of credit or is a cash transaction in which the amount the customer pays exceeds $25. "Consumer approval transaction" shall in no event include a catalog sale which is not accompanied by any other solicitation or a consumer loan conducted and consummated entirely by mail."

Jeez, Steve. I'm really sorry, but it appears you refinanced your home.

IAAL



------------------
By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."

 

[muskie]

Then why did I have the option to rescind on the loan? They even gave me the paper showing me my rights? I had to do this with the bank I went with instead also.

Thanks
Steve