Need Logistical Help Closing a Sub2 Deal

[Lawrence Potts]

Good morning BP Family,

I’m in negotiations with a listing agent on a property. I’m trying to figure out how this process would work to close. Here’s the situation:

The property is a main primary with a converted basement apartment and a potential above garage ADU. It has a mortgage at 1st lien for about half the market value of the home and a HELOC at 2nd lien approved for less than a quarter of market value (do not know the balance borrowed).

Now I have negotiated with the sellers and they are willing to sub2 the 1st lien and seller finance the rest. However, Oregon does not allow sub2 on HELOCS and I wouldn't want to anyways (what's to stop the sellers from pulling from it while I have title?). I'm waiting to find out the balance of the HELOC but does it make sense to bring that balance in cash as the down payment to the deal and have a contingency for the sellers to close the HELOC prior to closing? I don't want to bring cash and pay off before transferring the deed but I don't think title will allow transfer of deed with a HELOC balance? Am I wrong? What would you guys recommend? Thank you in advance.