Line of Credit on property for sale

[Micki M.]

I know a group of investors who put cash into a flip as part of a JV agreement. The deal has taken a year so far and the property has been sitting on the market for about 7 months. They have asked the partner to pull a line of credit and cash them out, but lenders are telling him they can't do that while the property is listed for sale. Does anyone have experience with this scenario? Other than pulling the property from the market temporarily is there another solution?

Keywords: lending, financing, HELOC