We are restructuring a consumer real estate loan. The home is no longer worth the loan balance. Buyer will assume our current note for the current purchase price. The seller will pay down the balance and carry a separate note for the remaining balance. Our attorney will be preparing all documents. Do we need to treat this as a purchase and provide TRID disclosures to the buyer who is assuming the loan? Or is the assumption a subsequent event?

1026.20(b) Assumptions. An assumption occurs when a creditor expressly agrees in writing with a subsequent consumer to accept that consumer as a primary obligor on an existing residential mortgage transaction. Before the assumption occurs, the creditor shall make new disclosures to the subsequent consumer, based on the remaining obligation.

Thanks so much!