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#2136840 - 07/03/17 08:18 PM TRID Purpose
Frosh Offline
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Customer is purchasing a new mobile home, then selling the old mobile home and wants the cash-out from the sale. Customer will use the same land and mortgage for the new mobile home. Would this be a refinance or purchase? Thank you in advance.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2136841 - 07/03/17 08:21 PM Re: TRID Purpose Frosh
raitchjay Offline
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Your TRID purpose is always tied to the dirt--so, if you are paying off an existing loan secured by this dirt, it would be a refi for TRID purposes.
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#2136842 - 07/03/17 08:22 PM Re: TRID Purpose Frosh
Skittles Offline
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TN
I'm a little confused - you're lending him the money to purchase the new mobile home?
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#2136844 - 07/03/17 08:24 PM Re: TRID Purpose Frosh
Frosh Offline
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Yes, lending the customer money to purchase the new mobile home, but they have a used mobile home on the same land, and would like to cash out from the sale of the old mobile home.

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#2136846 - 07/03/17 08:27 PM Re: TRID Purpose Frosh
raitchjay Offline
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I'm not quite following that part either....are you saying they intend to pay off the loan with proceeds from the sale of the old mobile home? What do you mean "cash out from the sale of the old mobile home"?
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#2136849 - 07/03/17 08:30 PM Re: TRID Purpose Frosh
raitchjay Offline
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Neither mobile home factors into your TRID loan purpose though......again, it's all about the dirt.
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#2136852 - 07/03/17 08:34 PM Re: TRID Purpose Frosh
Frosh Offline
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By cash-out I mean the customers are intending to payoff the old mobile home from the sale of it.

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#2136853 - 07/03/17 08:34 PM Re: TRID Purpose Frosh
rlcarey Offline
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They already own the land - it cannot be a purchase.
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#2136855 - 07/03/17 08:37 PM Re: TRID Purpose Frosh
raitchjay Offline
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Either your loan is paying off an existing loan secured by the dirt (in which case your TRID purpose is a refinance) or there are no existing loans secured by the dirt and they are pledging the land they own free and clear as collateral for this loan (in which case, your TRID purpose would be home equity).

Unless somehow they are buying the land with the mobile home (in which case you'd have a TRID purchase)--that's not how i took your original post.
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#2136858 - 07/03/17 08:42 PM Re: TRID Purpose Frosh
Frosh Offline
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Yes, there is an existing lien for the dirt; so yes, I understand now it would be a TRID refinance. Thank you for the help!

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#2136968 - 07/05/17 07:06 PM Re: TRID Purpose Frosh
Jen J Offline
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Would it be a refinance if the new loan is not paying off the old loan? It sounds like they will have two loans on the same dirt simultaneously (for a short period of time) and will pay off the first loan once the old mobile home is sold.

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#2140515 - 08/02/17 06:47 PM Re: TRID Purpose Jen J
Ski Offline
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Posts: 639
South Louisiana
This is this scenario:

Customer has an existing loan with bank secured by vacant land and a titled mobile home (mobile home is separately mortgaged to bank). Purpose of this loan was to do home improvements.

There is still a balance on the existing loan now secured only by the vacant land.


Customer is selling titled mobile home on the vacant land and borrowing more money to purchase a new mobile home that will be placed on the already mortgaged vacant land AND it will be immobilized (legally made part of the existing mortgage on the land).
Existing mortgage on vacant land will remain in place with a Louisiana "Act of Immobilization" being executed and recorded making the mobile home part of the real estate (vacant land).

Back to original question: Is this a refinance loan purpose for TRID?

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#2140560 - 08/02/17 10:26 PM Re: TRID Purpose Ski
Peach Offline
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Yes

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