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#2165094 - 02/17/18 12:08 AM Purchase then Modified
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
Yes, I am still working on 2017 Lar.

I have a short term loan for the purchase and rehab of rental property. The file indicates that when the short term loan matures, it will be placed on pay out.

This was accomplished through a modification agreement.

Report the short term loan since the intension at the outset was to perm it out with a mod?
The short term loan isn't reportable because it is temporary financing designed to be replaced by another loan of a longer term...even though it was a mod?

If I report it, use the entire term, initial through Mod?
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#2165106 - 02/19/18 02:50 PM Re: Purchase then Modified swiggles
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
While, mods are normally not reported, see Question 8. As far as I know, this is the only source I have ever seen that addresses this issue and contains this interpretation:

https://consumercomplianceoutlook.org/2011/second-quarter/hmda-and-cra-data-reporting/
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#2165107 - 02/19/18 03:03 PM Re: Purchase then Modified swiggles
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
Right....except, my loan isn't a "construction" loan. It's a purchase/improve loan. Should I apply that interpretation to my scenario?
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#2165110 - 02/19/18 03:33 PM Re: Purchase then Modified swiggles
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
That is the $64,000 question smile
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#2165139 - 02/20/18 01:52 PM Re: Purchase then Modified swiggles
RR Joker Offline
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The Swamp
My suggestion. Look at #4 of that same publication and apply it to your situation. We can't expect every scenario to be given as an example...some really need to just be looked at as apples to apples at some point.
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