Is a lawyer usually needed for this..?

[Nir]

Hi Everyone,



A banker I know suggested arranging a home equity line of credit based on the value in one of the properties.



Do you need to involve a lawyer if approved in this case where the bank is interested and initiates the process?



I understand for a re-finance of a Plex involving a transfer of a mortgage from bank to bank and some Equity Take-out you need a lawyer who may charge $500-$1000. On the other hand the bank's process of arranging a regular non-secured LOC obviously does not involve a lawyer.



so.. does a HELOC approved 'internally' by the bank (BUT that also includes a transfer of a mortgage from another bank) usually require similar lawyer's involvement and fee as Equity Take Out OR probably not?



THANKS.

 

[Thomas Beyer]

usually a lawyer is involved for a secured line of credit .. about $600 to $900 ..

 

[bizaro86]

A lawyer would almost always be involved in this (at your expense) since they will have to register the bank's charge against the property. I did one recently on my personal residence, total legal came to $765. The bank may want the business, but they're still going to want the mortgage registered on the title. Maybe if they want the business bad enough, they'll cover part of your legal fees. Doesn't hurt to ask...



Michael

 

[Nir]

Thanks Thomas and Michael!