Weird ELOC situation Catch-22

[Dan Robinson]

I'm trying to get a line of credit on a rental. I borrowed money from a relative to refinance it many years ago so I have a "mortgage" in some sense, but there is no lien filed with the county. 

Most banks don't do equity lines on rentals. I've found a few that do but for whatever reason require that there is a first mortgage in place and don't recognized the agreement I have with my relative. So to put it simply, they won't give me a loan unless there is already another loan. 

They also won't let me do a refinance because, again since there's no lien on it, they think it's a "cash out" refinance and won't do it on a rental property, but they would if it was a second home and not generating any income. 

Can anyone recommend a bank that doesn't have their head up their asses?