[vellis]

Hello, I have a very strange loan that I cannot get correct in my mind.
1. the loan officer is telling me that they are taking land only, but the customer lives on the property in a mobile home. We are not taking the mobile home as collateral. WOULD THERE BE A ROR?
2. There is not a lien on the property? WILL THIS BE HOME EQUITY? The proceeds of the loan will be for the customer to purchase a mobile home from a relative and to move it onto the property that we are taking as collateral? When I try to use purchase the title company says that this is not a purchase because real property is not being purchase.
3. Will I use Real Estate (mobile Home) as the collateral will I use land only since we are just taking the land.
4. Will I put the new mobile home in as a Title collateral and then have a security agreement.

I have to disclose tomorrow!!! I’m also being told that I need to put it in a personal property. I have never done this.
I RREALLY I’M A VERY CONFUSED TRID PERSON RIGHT NOW.
Could you please help me out

Thank you very much
Virginia 423-365-8400

[rcooper]

1. the loan officer is telling me that they are taking land only, but the customer lives on the property in a mobile home. We are not taking the mobile home as collateral. WOULD THERE BE A ROR?

Looking ahead to number 2, below, it looks like they will be purchasing the mobile home with the proceeds. It seems like either you have a residential mortgage transaction which is exempt:

1026.2(a)(24) Residential mortgage transaction means a transaction in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained in the consumer’s principal dwelling to finance the acquisition or initial construction of that dwelling.

Or you have a loan secured only by land with no dwelling which is not rescindable.

1026.23(a) Consumer’s right to rescind. (1) In a credit transaction in which a security interest is or will be retained or acquired in a consumer’s principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction, except for transactions described in paragraph (f) of this section.

If in doubt though you can apply RofR.

2. There is not a lien on the property? WILL THIS BE HOME EQUITY? The proceeds of the loan will be for the customer to purchase a mobile home from a relative and to move it onto the property that we are taking as collateral? When I try to use purchase the title company says that this is not a purchase because real property is not being purchase.

You would look at the purposes listed below from the regulation and work your way down. From what you’ve described it sounds like a HE.

1026.37(a)9) Purpose. The consumer’s intended use for the credit, labeled “Purpose,” using one of the following terms:

(i) Purchase. If the credit is to finance the acquisition of the property identified in paragraph (a)(6) of this section, the creditor shall disclose that the loan is for a “Purchase.”

(ii) Refinance. If the credit is not for the purpose described in paragraph (a)(9)(i) of this section, and if the credit will be used to refinance an existing obligation, as defined in § 1026.20(a) (but without regard to whether the creditor is the original creditor or a holder or servicer of the original obligation), that is secured by the property identified in paragraph (a)(6) of this section, the creditor shall disclose that the loan is for a “Refinance.”

(iii) Construction. If the credit is not for one of the purposes described in paragraphs (a)(9)(i) or (ii) of this section and the credit will be used to finance the initial construction of a dwelling on the property identified in paragraph (a)(6) of this section, the creditor shall disclose that the loan is for “Construction.”

(iv) Home equity loan. If the credit is not for one of the purposes described in paragraphs (a)(9)(i) through (iii) of this section, the creditor shall disclose that the loan is a “Home Equity Loan.”

3. Will I use Real Estate (mobile Home) as the collateral will I use land only since we are just taking the land.

You will list what you are taking as collateral. If you are not taking the MH it will not be listed.

1026.37(a)(6) Property. The address including the zip code of the property that secures or will secure the transaction, or if the address is unavailable, the location of such property including a zip code, labeled “Property.”

4. Will I put the new mobile home in as a Title collateral and then have a security agreement.
If you are taking it as collateral then I would believe that would be appropriate.

Please let us know if you additional questions.

[Author]

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