Maybe you found better credit terms or you
got cold feet. A provision of the Truth in Lending
Act gives you the right to cancel certain real
estate loans within three business days without
penalty.
You can rescind the transaction for any reason.
In the case of home equity loans you can rescind
only if you are using your principal residence
-- not a vacation or second home -- as collateral.
During those three days the creditor should not
take any action on the loan, such as giving you
money. If you are dealing with a home improvement
loan, the contractor should not deliver any materials
or start work.
If you do exercise your right of rescission,
you must do so in writing. Make sure your notice
is delivered before midnight of the third business
day.
For rescission purposes, business days include
Saturdays but not Sundays or legal public holidays.
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