Owns Free And Clear, But Has Home Equity On It?
Quick question for you all.
Ran into something I haven't run into before. Have a couple who own the home free and clear, but they have a home equity loan on it. The house is worth $100K and the home equity loan is for $85K.
How would you deal with this? Meaning, you can't do a sub-2 deal on a home equity loan can you? This stupid I know, but the home equity loan is tied to the property just like a mortgage would be?
Hypothetically, if there is no mortgage on the property, can they just deed it over to me, how would that affect the home equity loan?
They just want to get rid of the home and I was wondering what the best way to do that would be with the home equity loan in place, because home equity loans in the REI world are generally looked at as personal loans, etc if that makes sense.
Thanks,
[addsig]
The home equity loan is a mortgage. Just like a first mortgage. This house is mortgaged for 85% of value. They do not own it free and clear.
If they have an equity line against the house, they do not own it free and clear. They can deed the house over to you, but just as with a mortgage this line of credit is going to stick with the house.
I can't think of any reason why you couldn't do a sub2.
Yeah, that's kinda what I thought, but every now and then you start double-guessing yourself. It's like saying a word over and over again...before too long the word sounds weird and not right.
For some reason, I had thought about it too much
Thanks,
[addsig]