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HELOC Payoffs: Cover Your Bases.(Home equity line of credit)

Mortgage Servicing News

| April 01, 2004 | Rothenberg, Larry R. | COPYRIGHT 2004 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Mr. Rothenberg is an attorney in the Cleveland office of Weltman, Weinberg & Reis Co. LPA in the foreclosure/evictions department. He can be reached at lrothenberg weltman.com.

In a typical scenario, a lender makes a loan that includes an amount to be disbursed to pay the balance due to another lender on an existing home equity line of credit (HELOC). The new lender expects that the mortgage securing the HELOC will be released, and therefore, the new lender intends to have a first lien on the real property. However, unless the new lender or the lender's closing agent carefully fulfills the contractual requirements to assure that the mortgage securing the HELOC is ...

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Source: HighBeam Research, HELOC Payoffs: Cover Your Bases.(Home equity line of credit)

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