2(p) Refinancing
step one. Standard. Section 1003.2(p) describes a beneficial refinancing since a sealed-stop home loan or an open-stop line of credit where a new, dwelling-protected obligations obligation meets and you may substitute a preexisting, dwelling-covered obligations duty from the exact same debtor. But given that revealed in the opinion 2(p)-dos, if or not a refinancing has occurred depends upon mention of the if or not, based on the parties’ contract and you can appropriate laws, the first personal debt obligation has been satisfied otherwise replaced of the an effective the debt obligation. Whether or not the totally new lien is met is unimportant. For example:
ii. A special discover-stop credit line one touches and you will changes a preexisting closed-end mortgage loan are good refinancing not as much as 1003.2(p).
iii. But due to the fact described when you look at the remark dos(p)-2, a separate financial obligation responsibility you to definitely renews otherwise modifies the regards to, but that will not meet and you will change, an existing obligations obligations, isnt a beneficial refinancing significantly less than 1003.2(p).
dos. New york Condition integration, extension, and amendment agreements. In which an exchange is completed pursuant to some other York State consolidation, extension, and you can amendment arrangement and that is classified since the a supplemental mortgage significantly less than Nyc Tax Rules point 255, in a manner that this new debtor owes quicker if any financial tape taxes, and you can where, but for the brand new contract, your order will have came across the word a beneficial refinancing less than 1003.2(p), the order represents a good refinancing significantly less than 1003.2(p). See and additionally opinion 2(d)-2.ii.
3. Present loans responsibility. A shut-avoid mortgage or an unbarred-prevent line of credit you to matches and changes one or more present debt obligations is not an effective refinancing below 1003.2(p) unless the present obligations responsibility (otherwise debt) in addition to are safeguarded by a home. Including, think that a borrower possess a current $30,000 finalized-end mortgage loan and you may obtains another type of $fifty,000 finalized-prevent mortgage loan you to meets and you can changes current $31,000 loan. 2(p). Although not, whether your debtor get a unique $50,000 signed-end mortgage you to definitely joins and changes a current $30,000 loan protected just because of the your own guarantee, new $fifty,000 mortgage isnt an effective refinancing significantly less than 1003.2(p). Come across 1003.4(a)(3) and you may related opinions having information on how to report the mortgage intent behind like purchases, when they not if not excluded less than 1003.3(c).
A special signed-stop mortgage that touches and you can changes one or more existing closed-end mortgage loans was good refinancing below 1003
4. Exact same debtor. Point 1003.2(p) will bring one to, no matter if all of the other standards of 1003.2(p) try came across, a close-avoid mortgage otherwise an unbarred-avoid credit line is not a great refinancing except if the same debtor undertakes the existing and the the new duty(s). Not as much as 1003.2(p), the newest exact same debtor undertakes the current plus the the newest duty(s) no matter if just one debtor is the identical into the both personal debt. Such press the site, think that an existing signed-end home mortgage (responsibility X) was found and you can replaced by the a new signed-stop mortgage (obligations Y). In the event that individuals An excellent and you may B both are motivated towards the responsibility X, and just borrower B try required to the duty Y, following duty Y is good refinancing not as much as 1003.2(p), while additional criteria out-of 1003.2(p) is met, as the debtor B try required for the each other deals. Simultaneously, only if debtor An excellent are motivated on the obligations X, and only borrower B was motivated with the duty Y, upcoming obligations Y is not a refinancing significantly less than 1003.2(p). Particularly, think that a couple of spouses are divorcing. If the each other partners was obligated into the obligations X, however, only one mate is actually compelled towards obligations Y, upcoming duty Y is actually good refinancing not as much as 1003.2(p), if in case the other requirements of 1003.2(p) try fulfilled. At exactly the same time, only if mate A good try required with the obligations X, and only spouse B try compelled into the responsibility Y, upcoming duty Y is not a refinancing around 1003.2(p). Discover 1003.4(a)(3) and you may related opinions having information for you to report the mortgage intent behind particularly deals, when they not otherwise omitted not as much as 1003.3(c).