Hitting a snag with equity line of credit

[Kevin Allen]

Hello, I'm hoping to make this post as simple as possible and not too confusing. The house I'm living in is paid off and I plan on renting it out when we decide to move in the near future. I currently have another sfr now as well. I'm in the process of trying to set up an equity line of credit on the house I'm living in. In the past we had done a refinance with the bank I'm trying to set up the equity line with. I had no problems at all with the refinance. Now the underwriter is finding the original mortgage from like 20 years ago. They never closed it out even though we refinanced to another bank. It appears the original mortgage company is bankrupt as well(homecomings financial). Anyways, I'm trying to figure out how to get this resolved. Is this something my real estate attorney should be able to help me with? Should I just try a different bank? Seems like a big headache.