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Rainmaker
2,695,743
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

It is cash as far as the seller is concerned provided the HELOC is already in place and getting the HELOC is not a contingency. 

It's always a loan to the buyer. 

Oct 13, 2018 07:17 AM
Rainmaker
1,449,345
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Cash for land. We had people doing this years ago & then the HELOC would get hung up for some reason. Must be completed before land deal.

loan, debt to them.

Oct 13, 2018 07:47 AM
Rainmaker
803,380
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Great question for a mortgage broker...

Oct 13, 2018 07:39 AM
Rainmaker
659,250
Richard Bazinet /MBA, CRS, ABR
Realty ONE Group - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

It's cash because it's not a purchase money loan. When cash is taken out, it does not know where it's going. Once the lot is purchased, it was paid with cash and did not have a lien on it.

Oct 13, 2018 07:55 AM
Rainmaker
4,602,212
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

an equity line should be applied for as available funds...not specific to land...if the buyer does not have the loan prior to writing an offer on the land, it would be wise to make that offer contingent upon approval of that equity line....and then, after the loan has closed,  pay cash for the land.

Oct 13, 2018 07:36 AM
Rainmaker
3,044,545
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

I agree with Kathleen Daniels 

Oct 13, 2018 07:19 AM
Rainmaker
1,155,636
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Cash.  I've bought 3 homes using HELOC money and it was always considered cash.  The lender will see your HELOC and assume you will take a part of it out and counts it against you from the get-go.   Even though mine has $0 out of it, the lender I talked with earlier this year factored about 60% of it as being out for purposes of debt to income ratios.

Oct 13, 2018 09:37 AM
Ambassador
2,285,739
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   Kathleen Daniels has your answer.

Oct 13, 2018 07:59 AM
Rainmaker
2,932,059
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Kathleen Daniels and Barbara Todaro have you covered!

Oct 13, 2018 07:39 AM
Rainmaker
347,186
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

We have dealt with this recently.  It is a cash sale based upon an equity loan on an existing property. It is all disclosed and we are good to go.

Oct 13, 2018 05:11 PM
Rainmaker
1,778,092
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

If they all ready have the $$$ (from the loan) it's Cash

Oct 13, 2018 12:28 PM
Ambassador
2,893,332
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Cash, Wanda. The 'loan' is applied to their existing home and the cash pulled out of that home will be used towards the lot. 

Oct 13, 2018 10:14 AM
Rainmaker
731,710
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

What Kathleen said. -K

Oct 13, 2018 09:15 AM
Rainmaker
1,422,314
Bob "RealMan" Timm
Tivoli Custom Homes - Minot, ND
Bob Timm, Project Coordinator for Tivoli Homes

CASH! There would not be a mortgage against the property in this case Wanda Kubat-Nerdin - Wanda Can! 

Oct 13, 2018 09:10 AM
Rainmaker
4,960,464
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

I would call this a cash transaction since there is no loan on the lot.

Oct 13, 2018 08:15 AM
Rainmaker
918,111
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Same as cash. The payment will be in the form of a cheque. 

Oct 13, 2018 07:44 AM
Rainer
296,929
Susie Kay
Ultima Real Estate - Plano, TX
North Dallas Specialist

I would ask the lender

Oct 13, 2018 07:42 AM
Rainmaker
966,893
Corinne Guest
Barrington Realty Company - Barrington, IL
Barrington Home Buyer Advocate

Cash, they are not joined, except maybe in the buyers mind.

Oct 13, 2018 10:49 AM
Ambassador
3,725,590
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I am sure it depends on whether you are the buyer or the seller.  If I were the seller I would treat it as a cash transaction as long as they had the cash from their line of credit and did not check the financing contingency box.

Oct 13, 2018 02:58 PM
Rainer
136,959
Don Baker
Lane Realty - Eatonton, GA

that's a "depends" question.  Is the equity line approved and in place and just requires a check from the bank or are they applying for a new equity line? Is the contract contingent upon the equity line being approved?  Does the equity line require a new title search and closing?  

Oct 13, 2018 12:49 PM
Rainmaker
1,435,120
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Both:

cash for a seller, 

loan for a buyer.

Oct 13, 2018 09:01 PM
Rainmaker
918,857
Valeria Mola
SIB REALTY - Sunny Isles Beach, FL
305-607-0709 SIB Realty

Cash

Oct 13, 2018 07:11 PM
Rainmaker
1,184,311
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Cash is my first answer, but check your local title/settlement company or broker.  Good luck.

Oct 13, 2018 05:16 PM
Rainmaker
291,191
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

Exactly what Michael J. Perry said

Oct 13, 2018 04:38 PM
Rainmaker
4,046,098
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

You have the answers here.

Oct 13, 2018 11:56 AM
Rainmaker
4,631,745
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I would consider it cash unless the HELOC is not approved yet, then it would be a contingency pending approval of that line of credit.

Oct 14, 2018 06:36 AM
Rainmaker
1,014,464
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Cash if there is no lien against the property once settled.

Oct 14, 2018 06:19 AM
Rainmaker
2,822,713
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

It depends if the offer was continegnt on getting that equity line of if they already had it. It could be cash and could be a loan. It could be risky for a buyer to offer cash when they need to get a loan

Oct 14, 2018 06:08 AM
Rainmaker
1,337,653
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Yes, it is.

Oct 13, 2018 06:56 PM
Rainer
25,466
Dave Skow
Eagle Home Mortgage - Seattle, WA
Dave Skow

sellers perspective - cash ....buyers  perpective - loan

Oct 20, 2018 09:07 AM
Rainmaker
3,829,398
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Great question.

Oct 17, 2018 12:34 PM
Rainmaker
2,846,901
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Good question,  I would quess a loan!

 

Oct 17, 2018 11:27 AM
Rainmaker
4,313,757
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Others have answered

Oct 16, 2018 08:27 PM
Rainmaker
3,851,101
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

It is a cash sale unless the contract is tied to the approval  of the equity loan

Oct 15, 2018 03:37 PM
Rainmaker
2,718,721
Nina Hollander
Coldwell Banker Residential Brokerage | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

It's cash for the seller, a loan for the buyer.

Oct 15, 2018 07:02 AM
Rainmaker
699,841
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Cash for the purchase; loan on their books.

Oct 14, 2018 06:44 PM
Rainmaker
589,720
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

If the buyer draws on the HELOC and puts the money in a bank account you can call it a cash purchase.

If the HELOC is approved and in place but not used, it is, in effect, the same as a fully underwritten mortgage.

Just my take on the situation. You need to work out the details on your transaction with the parties. Don't let "who picks the title company" screw up a deal.

Oct 14, 2018 09:28 AM