We have an existing Interim Construction Loan to a builder. The owner of the construction company now wants to assume this loan in her personal name for 60 days. This woman has decided to keep the property as her homestead and has been approved for permanent financing with another lender.
Can an assumption be done in this situation (from commercial to consumer) and if so, what disclosures would now be required?
Thank you for your input!

Andy Z. - any guidance to offer?
All assistance will be greatly appreciated.

The OSC to 226.20(b) Assumptions, states:
5. Status of parties. Section 226.20(b) applies only if the previous debtor was a consumer and the obligation is assumed by another consumer. It does not apply, for example, when an individual takes over the obligation of a corporation.

It doesn't sound like what you are describing would be subject to Reg. Z.

As far as whether it can be done, I don't know of any reason it couldn't be, but you need to check state law as well.

Thank you so much for your help!