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#1627407 - 11/10/11 07:16 PM Reimbursement or Home Purchase?
ynot Offline
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Joined: Sep 2011
Posts: 81
Florida
An application was pre-approved for purchasing homes for rent, a committment letter was issued, however when the loan closed it ended up being a reimbursement to the borrower, verses a home purchase, as they had already paid cash for the home. Would this be reportable since the same borrower already owned the property? Does it make a difference that we provided a committment letter for a home purchase?

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#1627476 - 11/10/11 08:03 PM Re: Reimbursement or Home Purchase? ynot
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,227
Galveston, TX
It would not be reportable as they already owned the property and no existing loan was satisfied. It is nothing more than a "cash out" transaction.
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