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#2278008 - 11/17/22 05:31 PM Sale Proceeds Used for Purchase - CD Placement
Wonderofitall Offline
100 Club
Joined: Sep 2010
Posts: 198
Out West
Borrower sells House 1 and uses proceeds to buy House 2. Both closings occur about the same time. House 1 proceeds are wired from closing agent for House 1 to closing agent for House 2. Should Cash to Close (CTC) section of CD be reduced by House 1 proceeds, or would the CTC on the CD be the full amount and House 1 sale proceeds treated as if Borrower brought the entire CTC amount to closing?

If sale proceeds to be shown on the CD, what section of L would we show them?

You're never too old to learn something stupid.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2278055 - 11/19/22 04:36 PM Re: Sale Proceeds Used for Purchase - CD Placement Wonderofitall
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 82,124
Galveston, TX
The borrow is required to provide the cash to close at the time of settlement. What difference does it matter where those funds are coming from? That is an underwriting issue and not a disclosure issue.
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