John Locke: HELOC Subject-to??
This has been posted before but it was not answered and I feel it is a great question. Lets say that we want to take over a property subject-to a line of credit on the house. How can we prevent the sellers using the credit line in the future?
The mortgage that is recorded shows a HELOC differently than a regular note. Basically I'm assuming that title work must be done. Your help is greatly appreciated.
Thanks,
Matthew
get them to close the credit line before you buy the house
How can you close a credit line that still has a balance???
If your credit card has a balance, you can close the card so you can't use it anymore, but you still have to make the payments until it is paid off.
If they have a HELOC, they will close the credit line (the access to the credit), however, someone must still pay on what is owed. Will you pay on it, or are they going to continue to pay on it? Your better off paying but you might want to take the toys they bought with the credit....or they just ended up with some nice things dirt cheap.
myfrogger,
The important part is to have your seller contact the lender on the HELOC and get the proper paperwork to close the account.
What you are doing here is making sure your seller cannot use the line of credit anymore. The balance on the loan will still be attached to the property so it must be paid.
Calculate this payment into your new buyer's payment as figuring your seller will make these payments in my opinion just doesn't happen.
Joihn $Cash$ Locke