Seller terms: No HML or HELOC?

[John Daugherty]

I was analyzing an auction home today and ran across the seller’s term that specified “No Hard Money Loans or Home Equity Lines of Credit will be permitted”.

Why would a seller care if the money came from a HML or HELOC?

[Odie Ayaga]

If they weren't prohibiting conventional loans they may be trying to steer a purchase to a homeowner especially if they have a stated period where only loans from homeowners will be accepted. We've come across a few like that that didn't specify no hard money or HELOCs, but didn't allow non-owner occupied offers for a certain number of days.