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Sales Price Contract for Deed

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  • #35762
    Sandy
    Participant

    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?

    #35806
    jholzknecht
    Keymaster

    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 ยง 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 6 months, 3 weeks ago by jholzknecht.
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