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#2023842 - 06/29/15 07:00 PM Business Entity - Second Home
Love Cruising Offline
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Joined: Mar 2009
Posts: 248
We have a customer buying a residential condo, it will be under a business name and the consumer will be the guarantor. They may also use the property as a second home, would it require disclosures.

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#2023847 - 06/29/15 07:10 PM Re: Business Entity - Second Home Love Cruising
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,247
Galveston, TX
No, but how can the "business" do this transaction as a business purpose loan? Is the use of the "second home" going to be a taxable event for the consumer? If I was in your shoes, I would need to figure out how the business expects to account for this transaction, the impact of such a transaction on the viability of the business, and make sure that the consumer is not running this transaction through the business for other various nefarious purposes.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2023852 - 06/29/15 07:15 PM Re: Business Entity - Second Home Love Cruising
Love Cruising Offline
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Joined: Mar 2009
Posts: 248
This borrower has several investment properties, but they will be using this one as a second home since the property is by the beach. I was just concern whether to require disclosures.

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#2023855 - 06/29/15 07:17 PM Re: Business Entity - Second Home Love Cruising
Love Cruising Offline
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Posts: 248
This borrower has several investment properties, but they will be using this one as a second home since the property is by the beach. I was just concern whether to require disclosures.

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#2023859 - 06/29/15 07:20 PM Re: Business Entity - Second Home Love Cruising
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,247
Galveston, TX
The borrower is an entity - loans to entities (outside of the limited trust exceptions) are not covered under Regulation Z.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2023861 - 06/29/15 07:26 PM Re: Business Entity - Second Home Love Cruising
Help!!! Offline
Member
Joined: Aug 2011
Posts: 51
Arkansas
I have a customer buying a place on the lake, would this be considered a second home? I can't remember the maximum number of days a person can stay in the property before it's considered a primary residence.

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#2023865 - 06/29/15 07:29 PM Re: Business Entity - Second Home Love Cruising
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,247
Galveston, TX
14 days a year and it is considered owner-occupied under Regulation Z.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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