[Rich]

Here’s one for ya…
We have a bridge loan where the borrower has already moved into the new home, even though the loan is not closed.

Do we need a right of rescission since she’s moved and her existing home is no longer her primary dwelling? Or is it???

Topic

[rcooper]

That is a good question. Based on the information you’ve given, I think you’d have a difficult task proving it is indeed their new principal dwelling. If this sale were not to go through where would they be, back at their true primary residence? I would give the right to rescind – giving it when there is a small chance it isn’t required is much easier than dealing with a situation of not giving RofR when it is required.

[Author]

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