HELOC Lien Position

Considering pulling out some cash out of my property with a HELOC for future investments, Presently have a first and second mortgage on the property. My question is will lenders be willing to take a third lien position or will I have to refinance rhe second with cash coming out of the re-fi. And how much is available with an 200k first a 50k second with the appraised value at 300k. With a standard 80% cltv that leaves me at 240kand I've already exceeded that amount. ?????

Comments(4)

  • kfspropertymanagement16th August, 2004

    Finding someone to do a third is alot harder to do, can it be done yes but it will be hard. If your at 80% now it might be another problem you will have to talk to someone who knows what your trying to do.

  • myfrogger16th August, 2004

    I don't believe there is a large national market for 3rd position liens. I think you best bet would be a larger local bank (not a franchise) that keeps their loans in house.

    A better option is likely to cash out refinance the 2nd mortgage.

  • Leo_Investor24th August, 2004

    Why don't you refi your current 2nd into a HELOC? So that way you would roll the 50K into the new HELOC and have an additional 50K to use. 200K first lien, 100K HELOC 2nd lien.

  • InActive_Account25th August, 2004

    Great advice, and yet so simple.

    thankyou

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