Lawyer for HELOC Loan Real Estate Transactions in Charlotte

If you consider a home equity loan or home equity line of credit (HELOC), do your research. Banks, savings banks, credit unions, and mortgage companies all offer financing options. When the loan is backed by the value of your property, comparison shopping can help you get a better deal and terms.

The Nye Law Group can help you decide whether or not to borrow against the equity in your home. Our real estate lawyers are experts in home equity loans and HELOCs. We will help you make the decisions that will help you achieve your goals.

Legal Issues Associated with HELOC Loans

HELOC loans carry some special risks because equity is used as collateral. This is important to remember because the loan will reduce the value of your property. While equity loans can often help a person achieve a number of financial goals, they can also be linked to a number of legal challenges. These include:

• Overspending: Mismanagement of HELOC loans can put a person in financial trouble; this is important to remember because the loan actually reduces the equity in the home.
• Lien: When a person takes out a home equity loan, a lien is placed on their property; if they don’t pay, the lender can often levy on the property to recover payment.
•  Financing: HELOC loans can be used to refinance a property instead of taking out a traditional mortgage, but they cannot be used to purchase a property.

How a Lawyer Can Help with a HELOC Loan

While you are not required to hire an attorney to obtain a HELOC, it may be in your best interest to have the attorney analyze the terms. Because of its legalese, the HELOC, like a typical mortgage contract, can be difficult to understand. If you don’t know what your responsibilities are with respect to the terms of a HELOC, you can put yourself in a dangerous financial situation.

A Charlotte real estate lawyer will be able to explain the terms of your HELOC and your responsibilities in a clear and concise manner. Your attorney can also help you negotiate different interest rates and/or withdrawal periods with your lending institution. In addition, your attorney can provide you with legal representation and other legal services.

Get Professional Legal Help

A home equity line of credit (HELOC) allows you to borrow money from a bank as needed. Other debts, income, and credit history can all have an impact on the amount you can borrow. Because you are taking out a line of credit rather than a traditional mortgage, you should consult with a real estate attorney to ensure you are aware of all potential pitfalls.

Is it legal to use HELOCs to pay off other debts, improve the value and comfort of your home, go to college, or invest? The Nye Legal Group will advise you on what you should and should not do with your loan. To schedule a free consultation, call 912-200-5230 or complete our contact form.