When a person refinances or adds a home equity loan or line of credit to their ‘owner occupied’ property, they have a “three day Right of Rescission” . If the borrower rescinds the transaction any deposits the borrower paid are to be fully refunded regardless of whether or not the lender or broker’s policy was that it was a non-refundable deposit.
**The right of rescission does not apply to mortgages used to buy property.
