2(p) Refinancing
step 1. General. Point 1003.2(p) defines an excellent refinancing because a closed-avoid home mortgage or an unbarred-stop credit line in which a separate, dwelling-secured financial obligation obligation satisfies and replaces an existing, dwelling-safeguarded loans responsibility of the same debtor. But because explained inside review dos(p)-2, whether an effective refinancing has taken place is determined by mention of whether or not, according to the parties’ bargain and appropriate rules, the first personal debt responsibility has been met otherwise replaced because of the a good the personal debt responsibility. If the new lien are found try unimportant. Such:
ii. Another type of discover-avoid line of credit you to suits and changes an existing signed-prevent mortgage loan are a great refinancing under 1003.2(p).
iii. Except since the revealed into the comment 2(p)-2, yet another obligations duty one to renews otherwise modifies the fresh terms of, but that doesn’t fulfill and you will change, a current loans responsibility, is not a great refinancing less than 1003.2(p).
dos. Nyc County consolidation, extension, and modification arrangements. Where an exchange is completed pursuant to a different York County combination, expansion, and modification contract which is classified given that a supplemental home loan under Nyc Tax Rules point 255, in a fashion that this new borrower owes quicker or no home loan recording taxation, and you may in which, but also for the latest contract, the transaction might have satisfied the definition of a great refinancing significantly less than 1003.2(p), your order is recognized as a refinancing around 1003.2(p). Come across including review dos(d)-2.ii.
step 3. Current financial obligation obligations. A shut-avoid real estate loan or an unbarred-prevent line of credit you to meets and you may replaces a minumum of one existing debt burden is not a good refinancing less than 1003.2(p) until current financial obligation duty (or loans) and was secured by a home.