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Tina
Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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HOME EQUITY LINE OF CREDIT / HOME SALE ISSUES

Customer Question

HOME EQUITY LINE OF CREDIT / HOME SALE ISSUES Hypothetically, what would happen if a homeowner with equity of 1m and 2 equity lines owing 600,000 to the banks, takes a "cash offer" of 400,000 for sale of house? Would the homeowner, after the sale walk
away with the 400,000 cash? Or would banks get that money owned them through the escrow? What would overall legal consequences be to the homeowner attempting such a maneuver? Susan Sawicki
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 2 years ago.
Good morning. I am a tad confused so I need for you to clarify something for me. Just to be clear, if 600,000 is owed on the home, why would the owner consider selling it for 400,000 and giving up the 1 million in equity and not even pay of the 2 lines of credit?