Taking Over Payments - Home Equity Line of Credit - $0 Down

[Michael Hayes]

BP family what's going on? I have a question on how to structure a deal. I received a call from a motivated seller who is looking to just "let her house go". ARV of the house is $55k, but she has a home equity line of credit of $61k making payments right at $200 a month. No mortgage. I visited the house today and it is in A1 shape. I could literally move a tenant in as soon as I takeover with no repairs needed. The house would rent for $700/mo leaving me with very nice cash flow. Not interested in flipping and want to hold long term, so not worried about the balance.

How exactly is this deal structured though? Would it be different taking over a HELOC as opposed to taking over payments on a mortgage? If the title transfers to my company, but we leave the HELOC in her name and just make the payments, is there a way to make sure she can no longer use the line to make purchases etc.? Never structured one of these before, so looking for as much info as possible from someone who may be experienced. She is sending her HELOC information to my sister/agents email to take a look at the details on Monday. If everything checks out, I would be looking to take over ASAP.