Springfield, MA asked in Contracts for Massachusetts

Q: If I rescind my refinanced home improvement loan before work was done, will I still owe money on the original loan?

Both loans were issued by the same lender, and I did not rescind the original one within 3 business days.

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1 Lawyer Answer
Jonathan R. Roth
Jonathan R. Roth
  • Salem, MA
  • Licensed in Massachusetts

A: Without reading the relevant contracts, I cannot make a definitive answer. If you rescinded the second loan, the funds should not have been disbursed and there should not be money owed.

However, on the first loan you will owe the money but the funds should be repaid or not issued to the vendor if the work was not done. Assuming the money was paid to a vendor, you need to get a refund and use the money to repay the loan. You will likely lose some money on the transaction.

If the Vendor tells you he repaid the loan, you need to get a discharge and/or a written acknowledgement of payment from the Lender that money was repaid and your loan is either been repaid in full or get a final amount owed.

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