Ask a Question
or
Create a Poll
  1. Home /
  2. Questions /
  3. Real Estate
  4. / Home Mortgages And Real Estate Financing
  5. / Home Equity Loans
  6. / Home Equity Loans (General)

by Keith Kerrigan on January 29th, 2006

Keith Kerrigan

Question

Help answer this question below.

When a bank pays off a home equity line of credit on a second mortgage and still holds the first, how is the bank compensated?

Share:
Other

Answers. 1 helpful answer below.

  • by postmuffin on April 13th, 2007

    postmuffin

    Well if I'm understanding this. You had a first mortgage with the bank. Then you got a line of credit with another bank. The first bank bought the line of credit from the second bank. Now you owe the first bank for both loans. You are compensating them by making payments. They may also have bought the HELOC at a discount. The other bank might be willing to do this to get back their investment sooner than you could pay them.

    No comments. Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

More Questions. Additional questions in this category.

You're reading When a bank pays off a home equity line of credit on a second mortgage and still holds the first, how is the bank compensated?

Follow us on Facebook!

Related Ads

Related Questions

Professionally Researched

ANSWERBAG BUZZ

Corp to corp contract

Answerbag

a Demand Media company