Previous Home Property Sold on Contract Example

Official source

The customer sold his home under an installment contract. The contract has a principal balance of $75,000 as of July 1st. On July 10th the buyer makes a principal payment of $5,000 to the customer.

As of October 31st, the customer has used only $4,000 of the July payment in connection with purchasing of a new home. The unused $1,000 principal payment AND the remaining principle balance of the installment contract ($70,000) are counted as resources effective November 1 st .

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Previous Home Property Sold on Contract Example

Official source

The customer sold his home under an installment contract. The contract has a principal balance of $75,000 as of July 1st. On July 10th the buyer makes a principal payment of $5,000 to the customer.

As of October 31st, the customer has used only $4,000 of the July payment in connection with purchasing of a new home. The unused $1,000 principal payment AND the remaining principle balance of the installment contract ($70,000) are counted as resources effective November 1 st .