We have a consumer home loan that our customer is now acquiring the property thru an old contract for deed which was written up in 2006 for the original amount of $30,000. They now owe still approximately $25,000. I understand with TRID the purpose would be a purchase loan. Would you show the sales price as $30,000 and show a deposit of what they already paid down ($5,000) OR would you say the sales price is the current payoff $25,000?
I agree that the purpose should be listed “Purchase” and I like your approach with the sales price and down payment. Another alternative is to show the Estimated Property Value instead of the Sales Price. Comment 37(a)(7) 1. states, “In a transaction that involves a seller, if the sale price is not yet known, the creditor complies with § 1026.37(a)(7) if it discloses the estimated value of the property that it used as the basis for the disclosures in the Loan Estimate.”
This reply was modified 1 year, 11 months ago by jholzknecht.