2(p) Refinancing
1. Standard. Area 1003.2(p) defines a beneficial refinancing given that a shut-prevent real estate loan otherwise an open-prevent personal line of credit where an alternate, dwelling-covered financial obligation responsibility satisfies and you can changes a current, dwelling-covered personal debt responsibility by the exact same borrower. Except while the demonstrated into the review 2(p)-dos, whether or not an effective refinancing enjoys took place is dependent upon reference to whether or not, according to the parties’ offer and you may appropriate laws, the original debt duty has been satisfied otherwise changed by an excellent the debt responsibility. Whether or not the modern lien is came across is unimportant. Like:
ii. A different unlock-prevent personal line of credit you to meets and you may replaces an existing closed-end mortgage try an excellent refinancing under 1003.2(p).
iii. But just like the demonstrated during the opinion 2(p)-2, an alternate obligations responsibility one renews or modifies new terms of, however, that doesn’t see and you may replace, a preexisting financial obligation responsibility, isnt a great refinancing around New York loans 1003.2(p).
2. Nyc County consolidation, extension, and you will modification agreements. Where a transaction is done pursuant to some other York County integration, expansion, and you can amendment agreement and is classified given that an extra financial less than New york Taxation Law section 255, in a fashion that the debtor owes reduced or no home loan tape taxes, and you can in which, but also for the agreement, your order might have fulfilled the expression good refinancing lower than 1003.2(p), the transaction is regarded as good refinancing less than 1003.2(p). Find also feedback dos(d)-dos.ii.
3. Current debt obligation. A closed-end real estate loan otherwise an open-prevent credit line you to meets and you may changes one or more existing debt burden isnt an excellent refinancing below 1003.2(p) unless the current financial obligation duty (or loans) also are shielded from the a home. Particularly, think that a borrower have a current $30,000 closed-avoid mortgage loan and get another $fifty,000 signed-prevent mortgage loan one to matches and substitute the existing $31,000 mortgage. 2(p). Yet not, in the event your debtor receives an alternative $50,000 signed-prevent home mortgage you to definitely satisfies and you may substitute a current $29,000 loan covered just by a personal guarantee, the latest $fifty,000 loan isnt a good refinancing below 1003.2(p). See 1003.4(a)(3) and you may relevant reviews for recommendations on how best to report the mortgage purpose of such as transactions, when they maybe not if you don’t excluded around 1003.3(c).
A different closed-end home loan you to meets and you can replaces one or more current closed-prevent mortgage loans try a refinancing less than 1003
cuatro. Same debtor. Area 1003.2(p) will bring you to, even when the many other conditions off 1003.2(p) are met, a sealed-prevent home loan or an unbarred-avoid credit line is not good refinancing until an equivalent borrower undertakes both current in addition to the fresh responsibility(s). Less than 1003.2(p), the same debtor undertakes both the established additionally the brand new obligation(s) regardless of if only 1 debtor is the identical into the both personal debt. Such as, assume that a current signed-end mortgage loan (duty X) is actually satisfied and you will replaced because of the a different sort of finalized-end real estate loan (obligation Y). When the individuals An effective and you will B both are motivated towards the obligations X, and only borrower B are motivated to the obligations Y, then obligations Y is an excellent refinancing under 1003.2(p), whenever the other conditions out-of 1003.2(p) are met, once the debtor B try required into the both purchases. In addition, if only borrower Good is obligated towards obligation X, and just borrower B was obligated into obligations Y, up coming duty Y isnt an excellent refinancing below 1003.2(p). Instance, assume that one or two partners try divorcing. In the event that each other spouses try obligated into the obligation X, but one spouse is obligated with the obligations Y, upcoming responsibility Y are an effective refinancing less than 1003.2(p), while others criteria out-of 1003.2(p) is actually satisfied. While doing so, if perhaps lover A beneficial is required toward obligation X, and simply mate B was motivated towards the obligation Y, after that obligation Y isnt good refinancing under 1003.2(p). Get a hold of 1003.4(a)(3) and relevant remarks having suggestions on the best way to statement the borrowed funds function of instance deals, if they are not if not omitted significantly less than 1003.3(c).