Mark,
Tomorrow I will settle on two equity credit lines each secured by one of my investment properties. The equity line will have a zero balance until I actually use it.
My question is how do I report these equity lines on my financial statement, especially the 1003 loan application? Do they go into the revolving and installment credit section with my credit card accounts? Or, since the equity line is secured by the real estate, would I put them in the schedule of investment real estate and show the equity line as a mortgage with a zero balance? A third option which may not apply is to report these credit lines as contingent liabilities.
I suppose it does not really matter, because as long as I report them to a potential lender, I have made full disclosure. Nevertheless, I would like to know if there is a preferred approach.