Equity Line & Other Mortgages
An equity line too often functions as a second mortgage:
An example of how this has worked against the homeowner:
- The second mortgage was used to get a home owner 100% financing usually at 8-12%
- They were collateralized by the home and at least in California are considered as a chattel mortgage.
- The difference is important as an equity line is a personal liability and a mortgage is a chattel on the property.
In most cases, we can change many of the terms of these instruments. We advise clients how to proceed to achieve this important change.