Posted by River City on January 04, 2007 at 11:09:19:
The definition of a commercial loan versus a consumer mortgage loan generally lies with the lender that closed the loan. If you financed the loan in the name of a business, this could be considered commercial. In addition, if the vacant property was zoned commercial, this could also determine the type designation. Without seeing your paperwork, it is difficult to say.
And, no. In my opinion, this is not a breach of TILA.
Breach of “Truth in Lending” law? - Posted by Frank
Posted by Frank on January 03, 2007 at 22:46:42:
Several years ago I needed to refinance some vacant property I own. The lender put together a loan in which they would refinance my single family home, which is my primary residence, along with the vacant property into one loan. Sounded great at the time, but months after closing I found out that this was a commercial real estate loan. About a year ago I tried to refinance once again, but have been turned away because other lenders state they cannot change the loan from a commercial loan to a consumer real estate loan. Upon reading through the paperwork of the loan there is no mention of a commercial loan, in fact on the Settlement Agreement it states the type of loan as a “conventional uninsured” and the paperwork reads as a typical consumer loan. Also an agent of the Title company was the only person at the closing and she didn’t explain in detail any of the loan. Did I just overlook something or should the type of loan been disclosed within the paperwork or at the closing?