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#2108023 - 11/18/16 10:08 PM Ownership vs Obligation
dfumero Offline
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Company1 did a Warranty Deed to Company 2 a few years ago. Today, Company 2 is refinance the property which they are still obligated to but does not own the home. No transfer of ownership will be done at closing. Would this be a Refinance, a Purchase, or Not Reportable.

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#2108025 - 11/18/16 10:13 PM Re: Ownership vs Obligation dfumero
hmdagal Offline
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What's the collateral for the new loan request?

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#2108033 - 11/18/16 10:24 PM Re: Ownership vs Obligation dfumero
dfumero Offline
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The same dwelling that is being paid off is the collateral for the new loan.

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#2108037 - 11/18/16 10:34 PM Re: Ownership vs Obligation dfumero
hmdagal Offline
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So both loans are secured by a dwelling and the borrower is the same for both? If that's the case, your new loan would be a refi.

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#2108043 - 11/18/16 10:46 PM Re: Ownership vs Obligation dfumero
dfumero Offline
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Joined: Aug 2008
Posts: 101
Company 1 is on the original note and the new note just not the deed.

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#2108047 - 11/18/16 11:11 PM Re: Ownership vs Obligation dfumero
hmdagal Offline
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It doesn't matter who owns the property. To meet the definition of a refi, the old and new loans both have to be secured by a dwelling (not necessarily the same the dwelling) and they have to have a borrower in common.

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