Four individuals, lets call them A, B, C and D, get a loan in 2000 to purchase an investment property. Somtime later the four individuals form XYZ LLC together.
In 2013, individual A decides to sell his portion of XYZ LLC to individual E. The deed to the investment property is transfered from individuals A, B, C and D to XYZ LLC in December 2013.
In April 2014 a loan is closed to satisfy and replace the original loan from 2000 on the property but now in the name of XYZ LLC to reflect the new ownership of the company (B, C, D and E).
Because XYZ LLC was not the original borrower of record this would not be considered a refinance. Because the funds from the loan were not directly going towards purchasing the property it would not be a purchase. Therefore I think this is not reportable, and is basically a loan to reimburse a cash purchase. Just want to make sure I am right on this.
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Views and opinions are solely mine, are not meant to represent my employer in any way and should not be used as legal advice.