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#2266688 - 02/22/22 06:25 PM Purchase?
jel99 Offline
Junior Member
Joined: Sep 2021
Posts: 27
We have a customer paying off a contract for deed. The contract was executed in 2017 and this loan is financing the amount owed to be paid off. The warranty deed was also executed at the time of purchase in 2017. Would this still be a purchase or other?

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#2266689 - 02/22/22 06:39 PM Re: Purchase? jel99
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 79,931
Galveston, TX
Since a contract for deed is not secured by the dwelling, it would not be a refinance and thus would be a purchase.

(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.
The opinions expressed here should not be construed to be those of my employer:

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#2266726 - 02/22/22 09:58 PM Re: Purchase? jel99
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 46,961
Bloomington, IN
IMHO you need to get a copy of the contract and review it if you haven't already. If by virtue of the contract it is an existing debt obligation secured by the dwelling it would be a refinancing. If the deed was transferred at the time the contract was executed there very well could be a mortgage filed on the property.

If the contract does not rise to a debt obligation secured by a dwelling then I would agree it would not be a refinancing. However it sounds like the people already own the property (the deed transfer). If that is the case then I would opine it would be a Home Equity for TRID and Other for HMDA.
The opinions expressed are mine and they are not to be taken as legal advice.

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