With most reverse mortgages, you have a three-day right to cancel a reverse mortgage. Within three business days after the loan is closed, you can cancel the deal for any reason, without penalty. This is known as your right of “rescission.”
To cancel, you must notify the lender in writing. Send your letter by certified mail, and ask for a return receipt so that you have documentation of when you sent and when the lender received your cancellation notice. Keep copies of any communications between you and your lender. After you cancel, the lender has 20 days to return any money you’ve paid for the financing of the reverse mortgage loan. If you believe there is a reason to cancel the loan after the three-day period, seek legal help to see if you have the right to cancel.
