What is meant by “security” on the federal truth in lending disclosure statement?

Get Legal Help Today

 Secured with SHA-256 Encryption

What is meant by “security” on the federal truth in lending disclosure statement?

I am refinancing a rental house. In the statement under “Security” it states, “You are giving a security interest in real property you already own”. If I sign this form, does it mean that I am giving interest in the rental house I’m refinancing, plus my principle house that I own to the lender?

Asked on October 24, 2012 under Real Estate Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The term "security" with respect to your question means the home or property that will be subject to a mortgage on the refinance of the loan that you are getting. The "security" will be designated with respect to the loan. Hence you need to make sure that the security is the rental home that you are refinancing and not your main home you reside in.

If you fail to honor your loan payments on the property which is the secuirty for the loan, the lender can foreclose upon it. Hence, you should consult further with a real estate attorney with respect to the matter you are writing about.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption