The seven mistakes below recur in seller-carry files brought to a buyer for resale. Each one drops the resale price by a measurable amount, and the discounts stack. The fix on every one is the same — produce the record across the life of [...]
A seller-carried note that arrives at a buyer's desk with a clean servicing history sells at a tight discount to face value. The same note with no servicing record sells at a deep discount — or fails to sell at all. The difference is [...]
The questions below cover the regulatory decisions a seller-carry holder makes on every owner-occupied carry under Section 32 of Regulation Z. The answers point to the records and disciplines a state examiner, a note buyer, or a borrower-counsel review will request.CoverageQuestion one — Does [...]
A seller financing a real estate sale faces a different regulatory framework depending on whether the borrower occupies the property as a primary residence. This comparison walks the coverage analysis, the disclosure obligations, the loan-term restrictions, and the operational duties across an investor-owned carry [...]
The three case studies below describe seller-carry holders who closed Section 32-covered loans without running the coverage analysis and absorbed the consequences. Identifying details have been changed; the operational and regulatory patterns recur in seller-carry files reviewed at a licensed servicer.Case one — the [...]
The Section 32 coverage test determines whether a seller-carry note on an owner-occupied home falls inside the high-cost mortgage rules of §1026.32. Run the test before closing, document every step on a written workpaper, and file that workpaper in the loan jacket.
Section 32 of Regulation Z reshapes the rules on a seller-carry note when the property is the borrower's primary residence. The seven mistakes below recur in seller-carry files brought to a licensed servicer for review after a borrower complaint or a state inquiry.Mistake one [...]
Section 32 of Regulation Z — the rule the industry calls HOEPA — reshapes how a seller-carried note works when the property is the borrower's primary residence. A carry on an investor-owned rental sits outside the rule. A carry on the borrower's home runs [...]
A seller financing a sale at closing has two clean handoff windows to a licensed servicer in the first 60 days — the closing-table handoff before any borrower payment arrives, and the day-60 handoff after the first reporting cycle runs. This comparison walks the [...]
The day-45 escrow analysis is the first reconciliation a seller-carry holder runs between the closing-day escrow estimate and the verified tax and insurance amounts. The analysis takes an afternoon, produces the borrower notice of any payment adjustment, and sets the trust account up to [...]
