how the three day cancellation rule works
the provision in the law allowing borrowers three days to change their mind and back out of a loan contract is known as the three day cancellation rule specifically the rule allows borrowers three business days including saturdays but not sundays to cancel the contract without penalty and for any reason 4the clock starts ticking only after you have signed the loan contract at closing received a truth in lending disclosure form from the lender and also received two copies of a truth in lending notice explaining your right to cancel according to the ftc if you didn t get the disclosure form or the two copies of the notice or if the disclosure or notice was incorrect you may have up to three years to cancel 4otherwise once all three of those things have happened you have until midnight of the third business day to cancel 4