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#2077719 - 05/09/16 07:43 PM Owner Finance
George Offline
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Joined: Apr 2016
Posts: 364
Have a transaction that is requesting to refi an Owner Finance. Would this be report as a refinance or purchase, since technically there was no loan being satisfied (at least not in my mind)?
Last edited by George; 05/09/16 07:44 PM.
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#2077781 - 05/10/16 12:51 PM Re: Owner Finance George
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 46,858
Bloomington, IN
(p) Refinancing means a closed-end mortgage loan or an open-end line of credit in which a new, dwelling-secured debt obligation satisfies and replaces an existing, dwelling-secured debt obligation by the same borrower.

I would consider the contract between the seller and the buyer to be a dwelling secured debt obligation.

Many of us report these as a refinancing, many others report them as purchases. Make a determination, document your reasoning and report all like loans consistently.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2077842 - 05/10/16 03:59 PM Re: Owner Finance George
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Dan is correct. These can go either way. I'm in the camp of calling it a purchase if there's a title transfer.

This is a topic in which there's more clarification in the 2018 rules. Most every one will be a purchase (there is some wiggle room) under the new rules.
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David Dickinson
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#2077850 - 05/10/16 04:27 PM Re: Owner Finance George
George Offline
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Joined: Apr 2016
Posts: 364
Thanks guys, I appreciate it!

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