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#1673926 - 03/06/12 07:51 PM Property offered as collateral for future prchases
Wannaknow Offline
100 Club
Joined: Jul 2011
Posts: 238
An applicant owns a vacation home free and clear of debt and has offered it as security. Proceeds will be used to purchase multiple SFR's via short sales in the future. No specific SFR's yet.

Is this loan going to be reportable? He is not purchasing or refinancing the vacation home.

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#1673946 - 03/06/12 08:17 PM Re: Property offered as collateral for future prchases Wannaknow
Bluesfan57 Offline
100 Club
Joined: Feb 2011
Posts: 155
Peak 10 Breck, CO
i would say you have a reportable purchase loan and that you will want to report the property being taken as security (vacation home) for corresponding data fields.

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#1673948 - 03/06/12 08:19 PM Re: Property offered as collateral for future prchases Bluesfan57
Wannaknow Offline
100 Club
Joined: Jul 2011
Posts: 238
The properties being purchased have not yet been selected. He wanted the funds to ready himself to be able to purchase in the future. He will go to foreclosure auctions, tax sales, etc.

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#1673986 - 03/06/12 09:06 PM Re: Property offered as collateral for future prchases Wannaknow
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,530
Bloomington, IN
The loan's purpose meets the definition of a home purchase. See Purpose—statement of applicant on page D-10 of the GIR.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1673998 - 03/06/12 09:19 PM Re: Property offered as collateral for future prchases Wannaknow
Wannaknow Offline
100 Club
Joined: Jul 2011
Posts: 238
Perfiect. Makes sense. Thank you.

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