2nd Is A Line Of Credit
I have a property I want to take over Subject To. The homeowner has a line of credit as a 2nd. It's currently maxed out, but how do I legally prevent her from drawing on the line as it's being paid down? She says she won't use it, but I'd like something in writing. Any suggestions? 
Very, very good question.....anyone??
If John Locke doesn't respond you might send him a private message and if he has an answer, hopefully he will share it with all of us.
I agree this is an interesting situation.
Tell her to close the HELOC (home equity line of credit)
it's just like cancelling a credit card. same process, call em up and shut it down.
Then you just monitor it and make sure she doesn't open it again. you got the LPO to do that
Can it be cancelled with a balance on it?
Having never used a LOC, I don't know. If so, that sounds like a good solution. Thanks for the input.
yes it can, just got to keep making the payments.
ALWAYS have sellers close a HELOC if they have one. I always ask if the second is a HELOC when I find out that they have a second
I wanted to bring this back on the hot sheet....hopefully John Locke will respond. Thanks
I've always done it with a form instructing the lender to close the account and have it signed by the debtors.
Get her to sign a closeout letter on the second. I normally do mortgage closings in my day biz and can send you one next time I see one. PM me.
Carlos