Re: HELP: Subject-to with a Home Equity LOC? - Posted by Jim K
Posted by Jim K on July 17, 2001 at 01:33:57:
Will, thank you for your input. I was researching the archives of this site, and found a post by Bill Gatten, stating that he has no problems with HELOCs. What he does is make the subject-to contract contingent on the seller putting a “freeze” on the HELOC, and confirmation from the bank that this has been done, before he’ll close. He also said he’s had no problems from banks in doing this.
Do you have any direct knowledge of banks calling HELOCs due if the ownership is placed into trust? I’ve only heard rumors, but no one has come forward to state it has happened to them.
Also, if the bank called the loan, it seems I could just go get another second to pay-off the HELOC, since this one only comes to a CLTV of about 80%. I’d really like to L/O this place, and I’m starting to think I could handle it if the bank called the loan, or if they didn’t. Any thoughts?