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#2067177 - 03/02/16 08:28 PM Metal Storage Building
Live&Learn Offline
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Live&Learn
Joined: Aug 2012
Posts: 241
South
We have a loan to add a metal storage building to the property which a dwelling is located.

Technically I think it could be disassembled and taken or could be left there if they ever sold the property.

Would this be considered HMDA home improvement?
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#2067190 - 03/02/16 08:57 PM Re: Metal Storage Building Live&Learn
Ski Offline
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Joined: May 2003
Posts: 639
South Louisiana
If the borrower is putting down a slab that the metal building will then be attached to, I would consider reporting it as home improvement. Is it just one that you can buy at Lowe's, Home Depot, etc. and they deliver it to your property?

The more permanent the improvement, the more inclined to report. (Like A/C unit vs. window unit)

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#2067203 - 03/02/16 09:45 PM Re: Metal Storage Building Live&Learn
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
What Ski is trying to address is "real property" vs. "personal property". If I borrow money to buy a swimming pool that can be folded up and moved to my next residence, it's personal property. If it's cement and in the ground, it's real property. Real property improvements meet the definition of "home improvement" for HMDA.

Just because something can be disassembled and taken doesn't mean it's not real property. This is where HMDA is known for putting round pegs in square holes. You need to determine if the shed is real property or personal property. When you do, document why/why not and move on.
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#2067515 - 03/04/16 02:38 PM Re: Metal Storage Building Live&Learn
Live&Learn Offline
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Live&Learn
Joined: Aug 2012
Posts: 241
South
Makes sense, thank you.
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