question re real estate assets on co-op app

maybe i cant use home equity as a real estate asset... who knows... new to this.

Put the value of the home in the assets section (check Zillow for a ROUGH) estimate and put the mortgage balance in the liability section.

The mortgage and home equity is a liability. Do you have the appraisal for the house at the time of purchase? If it's not too old, that could be helpful in approximating the current value. Your broker should be helping you with the coop application, addressing questions like this.

home equity is a liability??

No, the estimated value of the house minus outstanding mortgage amount is an asset. However, as stated by jms8 above, you report the amount of mortgage (annual or monthly payments) on the liability column, along with RE taxes and home insurance policy premium (annual or monthly) you have to pay on the NJ house.

By the way, I find zillow to be really off with some of the home values in my area. Our house was estimated approximately $200,000
lower than its likely actual value (based on acreage and square footage vs. other comparable houses sold within one mile radius of our house and, specifically, within our more expensive area in a historical village).

I have used homes.com (that may give you a slightly more inflated value) and you may speak to a local realtor to get a sense of the value of your NJ house.

Re: home equity is a liability

I'll gladly take on any of your home equity liabilities. Sign them right over.

@ wiivile

geez man , you have to be kidding ?!?!?!?

Yes, home equity is a liability. However, the liability is amount of credit you've actually used. For example, if you have a home equity line of credit of $250,000 and actually have taken $200,000 of the credit line, you must list the $200,000 as a liability.

Re: Yes, home equity is a liability

That's right Timmy, don't you let those other kids tell you that you don't know things!

jelj13, Just to be straightforward here. Home equity is not the same as home equity line.

Here is the definition of "home equity": Home equity is the market value of a homeowner's unencumbered interest in their real property--that is, the difference between the home's fair market value and the outstanding balance of all liens on the property. (From Wikipedia)