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#2149455 - 10/11/17 07:12 PM Re: Gift of Equity RegObsessed
trying_to_comply Offline
100 Club
Joined: Feb 2011
Posts: 144
Anyone else surprised that the Final rule did not provide any additional information around Gift of Equity?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2149460 - 10/11/17 07:51 PM Re: Gift of Equity RegObsessed
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,164
Galveston, TX
It is just a seller credit.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2232054 - 02/28/20 05:56 PM Re: Gift of Equity RegObsessed
BA13 Offline
100 Club
Joined: Jul 2016
Posts: 194
Hello,
Do you feel this is still a seller credit even though no cash is being transferred between the buyer & seller?

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#2232056 - 02/28/20 06:07 PM Re: Gift of Equity RegObsessed
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,164
Galveston, TX
You only have two options - either lower the sales price or the seller gives them a seller's credit. That does not mean there is a transfer of cash - it just adjusts cash due from the borrower and cash due to the seller.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2232328 - 03/04/20 07:12 PM Re: Gift of Equity RegObsessed
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
Agree with RAndy. The issue with lowering the sales price is that you would then likely still have a downpayment requirement that may otherwise be covered by said credit.
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My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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