Replies to This Discussion

Permalink Reply by Richard E Shadid on February 12, 2011 at 3:02am

I am not sure if they are considered a 'Mortgage', but we all know they are a lien against the property, which allows them to be a stumbling block to closing a transaction.

• ▶ Reply

Permalink Reply by Michael Schneider on February 12, 2011 at 7:13am

I certainly would condider them a "mortgage".  To me, the definition of "is it a mortgage" is whether there is a mortgage lien recorded on the land record that gives the lien holder the right to prevent conveyance and to foreclose.

If it looks and acts like a mortgage, it's a mortgage.

Real estate secured lines-of-credit (HELOCs) are recorded, so they are mortgages.  The various rules for TILA, RESPA, HMDA, etc may vary because they are generally revolving, but as far a handling short sales is concerned, they are mortgages, just like a fixed installment loan.

It short, it's a mortgage.

• ▶ Reply

Permalink Reply by Darlene Krause on February 15, 2011 at 9:18am

Yes, a Home Equity Line is a Mortgage.

Michael Schneider said:

I certainly would condider them a "mortgage".  To me, the definition of "is it a mortgage" is whether there is a mortgage lien recorded on the land record that gives the lien holder the right to prevent conveyance and to foreclose.

If it looks and acts like a mortgage, it's a mortgage.

Real estate secured lines-of-credit (HELOCs) are recorded, so they are mortgages.  The various rules for TILA, RESPA, HMDA, etc may vary because they are generally revolving, but as far a handling short sales is concerned, they are mortgages, just like a fixed installment loan.

It short, it's a mortgage.

• ▶ Reply

Permalink Reply by Steve Early on February 17, 2011 at 6:30am

Sure it is. The mortgagor took out a mortgage to acquire a property. The property appreciated in value, allowing them to essentially pull some of the appreciated cash value out of the house, securing it with that asset. But Richard hit the nail on the head - you can call it whatever you want, it represents a lien against the property that has to be settled to transfer the asset to a new owner - whether through a short sale or conventional sale.

• ▶ Reply