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 [...]
The questions below cover the operational decisions a new seller-carry holder makes in the first 60 days after closing. The answers point to the records and disciplines a note buyer or state examiner reviews at month six and beyond.Recording and document custodyQuestion one — [...]
The three case studies below describe seller-carry holders who skipped early-stage disciplines and absorbed the consequences. Identifying details have been changed; the operational patterns recur across the file types brought to a licensed servicer for cleanup.Case one — the unrecorded deed of trustA seller [...]
The first 60 days after a seller-carry closing decide whether the note becomes a clean, sellable asset or a file that discounts hard on resale. The seven mistakes below recur in seller-carry files brought to a licensed servicer for cleanup at month three, month [...]
A seller-carried note begins on the day the deed records, and the operational disciplines built in the first 60 days after that date set the note up for either a clean payment history and a resellable asset, or a tangled file that discounts hard [...]
A seller-carry holder choosing between a personal checking account and a dedicated trust account is choosing between two structures that look similar on a balance screen and that diverge on every other dimension. The comparison below walks the four dimensions where the two structures [...]
The three patterns below recur in seller-carry trust account files brought for cleanup. Each one started with a small operational shortcut and ended with a regulatory finding, a litigation exposure, or a resale discount the holder did not anticipate.Pattern one — the commingled account [...]
The ten questions below recur in conversations with seller-carry holders during a trust account intake. Each has a clean technical answer when the records are in order and a complicated answer when the records are gaps. A holder who can answer the ten questions [...]
