Legal Question in Real Estate Law in New York

Re: Pay back home equity loan before selling?

Your debt will have to be settled as part of the transaction that closes to the new buyer. If you hope to sell in the near future, that may mean that borrowing against your condo will not pay the costs to you.

Re: Pay back home equity loan before selling?

Whether you are you confusing a home "equity" loan with a "bridge" loan [program] available via your employer; the answer is the same, the Lender specified terms are controlling.

But, generally repayment is due upon sale of the collateral securing the mortgage loan.

Please note, if you obtain a "equity" mortgage loan on your property in NY, (rather than a "bridge" or "short term" purchase loan) you may incur a "PRE-Payment PENALTY, that can now be extended for up to 3 years!!!

Get a lawyer

Good luck,

Phroska L. McAlister,ESQ

Re: Pay back home equity loan before selling?

At the time of closing, the title company will collect the loan as a pay off from the proceeds of the sale. The payoff may not extend beyond the closing or else the new owners will have a lein on the property they buy.

Feel free to contact me with any further questions.

Good Luck

RRG