The newest $fifty,000 mortgage is an excellent refinancing not as much as 1003
2(p) Refinancing
step one. General. Section 1003.2(p) talks of an effective refinancing because a close-prevent mortgage or an open-end credit line where a separate, dwelling-shielded loans duty matches and changes a preexisting, dwelling-secure obligations obligations by same debtor. Except just like the explained for the feedback dos(p)-dos, whether or not good refinancing provides happened depends upon mention of whether, according to the parties’ contract and you may appropriate law, the original debt obligations might have been fulfilled otherwise replaced by a beneficial personal installment loans Nashville AR the personal debt obligations. Whether the unique lien was came across are irrelevant. Particularly:
ii. A unique discover-prevent line of credit that suits and you will changes a current closed-avoid real estate loan is actually a beneficial refinancing not as much as 1003.2(p).
iii. Except due to the fact discussed within the feedback 2(p)-dos, a special financial obligation duty you to definitely renews or modifies brand new terms of, but that doesn’t satisfy and you may replace, an existing debt duty, is not an effective refinancing less than 1003.2(p).
2. Nyc State consolidation, extension, and you may amendment agreements. Where a deal is performed pursuant to a different York Condition consolidation, expansion, and you can amendment arrangement which can be categorized since the a supplemental financial below Nyc Tax Rules section 255, in a fashion that the latest debtor owes less or no mortgage recording taxes, and you will where, but for new agreement, the order might have came across the definition of good refinancing less than 1003.2(p), your order is known as a great refinancing significantly less than 1003.2(p). Read more