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#2237611 - 06/05/20 01:33 PM LE Page 1 - Estimated Cash to Close
mdog76 Offline
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Joined: Jan 2007
Posts: 645
We have a CD that is listing $0 for estimated cash to close. I was thinking I have seen where this number can't be $0. The purpose is a bridge loan if it matters.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2237613 - 06/05/20 01:44 PM Re: LE Page 1 - Estimated Cash to Close mdog76
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,584
Galveston, TX
Well, if the loan amount exactly equals the closing costs and payoffs - you are going to end up with $0, are you not?
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#2237618 - 06/05/20 02:23 PM Re: LE Page 1 - Estimated Cash to Close mdog76
mdog76 Offline
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Joined: Jan 2007
Posts: 645
It could. I was thinking I had seen it had to be a negative or positive number.

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#2237623 - 06/05/20 02:34 PM Re: LE Page 1 - Estimated Cash to Close mdog76
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,584
Galveston, TX
The cash to close figure can be either or $0 if that is how it works out. It is purely a mathematical equation based on the components in the formula. You are not going to structure a transaction to force a borrower to come to closing with a penny.

37(h)(1)(viii) Estimated cash to close.

1. Result of cash to close calculation. The sum of the amounts disclosed pursuant to § 1026.37(h)(1)(i) through (vii) is disclosed under § 1026.37(h)(1)(viii) as either a positive number, a negative number, or zero.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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