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Ambassador
3,350,589
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

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
1,847,771
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

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
2,222,281
Anthony Acosta - ALLATLANTAcondos.com
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Great question for a mortgage broker...

Oct 13, 2018 07:39 AM
Rainmaker
716,659
Richard Bazinet /MBA, CRS, ABR
West USA Realty - 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
5,583,328
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

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
4,584,346
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

I agree with Kathleen Daniels 

Oct 13, 2018 07:19 AM
Rainmaker
1,506,933
Ryan Huggins - Thousand Oaks, CA
https://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
2,684,769
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   Kathleen Daniels has your answer.

Oct 13, 2018 07:59 AM
Rainmaker
5,245,501
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
717,085
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
2,195,399
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
5,258,256
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

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
809,258
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
2,402,890
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

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
7,871,007
Roy Kelley
Retired - Gaithersburg, MD

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

Oct 13, 2018 08:15 AM
Rainmaker
1,242,204
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
509,449
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

I would ask the lender

Oct 13, 2018 07:42 AM
Ambassador
6,425,063
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - 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
381,637
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

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
1,625,253
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Both:

cash for a seller, 

loan for a buyer.

Oct 13, 2018 09:01 PM
Rainmaker
1,598,452
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Cash

Oct 13, 2018 07:11 PM
Rainmaker
1,231,853
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
788,814
Abby Stiller
TOP SELLING REALTY - Cape Coral, FL
SW Florida (239) 284-8637

Exactly what Michael J. Perry said

Oct 13, 2018 04:38 PM
Rainmaker
5,773,261
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
4,800,132
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
1,027,602
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
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area 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
2,071,025
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

Yes, it is.

Oct 13, 2018 06:56 PM
Rainer
28,871
Dave Skow
Movement Mortgage - Seattle, WA
Dave Skow

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

Oct 20, 2018 09:07 AM
Rainmaker
5,879,696
Joan Cox
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
4,967,166
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
4,434,177
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
3,986,308
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
5,116,528
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

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

Oct 15, 2018 07:02 AM
Rainmaker
902,428
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
1,326,174
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
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