2(p) Refinancing
step one. General. Section 1003.2(p) talks of an effective refinancing just like the a close-avoid home mortgage or an open-avoid credit line in which an alternate, dwelling-secured debt obligation meets and you will changes a current, dwelling-secured loans responsibility of the exact same debtor. Except once the explained in review 2(p)-2, whether a good refinancing has occurred is dependent on mention of the if, in line with the parties’ offer and applicable laws, the first financial obligation duty could have been fulfilled or changed because of the a good new personal debt duty. Perhaps the original lien is satisfied is irrelevant. Such as for example:
ii. Yet another open-prevent line of credit one touches and you will substitute a current signed-stop real estate loan was a beneficial refinancing less than 1003.2(p).
iii. Except because the revealed in review dos(p)-2, a new loans obligation one renews otherwise modifies the fresh new regards to, but that does not satisfy and you will replace, a current personal debt obligation, isnt an effective refinancing under 1003.2(p).
2. New york State consolidation, extension, and you will modification preparations. In which an exchange is done pursuant to some other York Condition integration, expansion, and you can amendment agreement in fact it is categorized because an extra home loan less than Nyc Income tax Laws point 255, in a fashion that new borrower owes shorter or no mortgage recording taxes, and you may where, but also for the newest agreement, the order could have found the definition of a great refinancing significantly less than 1003.2(p), the transaction is known as a great refinancing less than 1003.2(p). Pick along with feedback 2(d)-dos.ii.
step three. Existing debt duty. A closed-prevent mortgage loan or an open-stop credit line you to suits and you will substitute a minumum of one current debt burden is not an excellent refinancing under 1003.2(p) except if the present loans obligation (or personal debt) along with are covered of the a dwelling. Including, believe that a debtor features an existing $29,000 finalized-end mortgage loan and you will obtains a different sort of $fifty,000 finalized-end mortgage loan one touches and changes current $29,000 financing. 2(p). However, in case the borrower obtains another type of $fifty,000 finalized-avoid mortgage you to definitely meets and changes a current $30,000 loan secure only from the a personal make sure, the brand new $50,000 mortgage is not an effective refinancing lower than 1003.2(p). Pick 1003.4(a)(3) and you may relevant comments to have information on the best way to statement the borrowed funds function of instance purchases, when they not if you don’t excluded under 1003.3(c).
Another signed-end mortgage you to definitely touches and changes no less than one present closed-avoid mortgage loans was an effective refinancing around 1003
4. Same borrower. Point 1003.2(p) brings you to, even if all of the other conditions away from 1003.2(p) are fulfilled, a close-end mortgage or an open-stop line of credit isnt an effective refinancing unless a comparable borrower undertakes the existing and also the the latest duty(s). Lower than 1003.2(p), this online personal loans Nebraska new exact same debtor undertakes the established additionally the the new obligations(s) even in the event only one borrower is the identical towards each other loans. Instance, assume that a current finalized-stop mortgage (obligation X) is fulfilled and you can replaced from the yet another signed-end home mortgage (duty Y). In the event that individuals Good and you can B they are both motivated with the obligations X, and only borrower B try required into the obligations Y, upcoming obligation Y try a good refinancing significantly less than 1003.2(p), whenever additional criteria off 1003.2(p) is satisfied, since debtor B try required to the both transactions. Concurrently, if perhaps borrower Good try motivated on the obligation X, and only borrower B is compelled for the obligation Y, after that responsibility Y is not a beneficial refinancing under 1003.2(p). Such as, think that a few partners are divorcing. If the one another spouses was obligated for the duty X, but just one spouse is actually obligated toward responsibility Y, next obligations Y was a great refinancing below 1003.2(p), assuming others requirements out of 1003.2(p) was satisfied. On the other hand, only if companion Good was motivated toward obligations X, and just companion B was compelled to your obligations Y, after that obligation Y isnt good refinancing significantly less than 1003.2(p). See 1003.4(a)(3) and you can associated remarks getting suggestions for you to statement the loan purpose of such as for instance deals, if they’re perhaps not or even excluded lower than 1003.3(c).