#1641058 - 12/20/1105:07 PMDivorce - refi and purchase
AuditorK
Platinum Poster
Joined: Feb 2003
Posts: 962
PA
We are doing a loan for a husband, who is buying out the wife's share of what used to be their joint home (pursuant to a divorce). The loan is a refinance (paying off the husband's/wife's old mortgage and new loan is secured by a mortgage on now solely the husband's home. Is this also a purchase for the husband since he is buying the wife's share and now the sole owner of the home? How should this be reported?
I'm from the school that codes these as a purchase, as one person is purchasing the other's interest in the property. As Truffle stated, pick a side, put it in your procedures and be consistent.