Subject 2 HELOC

[Gary Parker]

I have a home under contract where the owners are deceased and there is a HELOC in place. There is a $30K difference between the credit limit of the HELOC and what is owed. The sellers (the children of the deceased) have agreed to let me purchase subject 2 the HELOC. My concern is the the sellers will draw money from the HELOC once the property is closed with me. They may have power of attorney or something. I am thinking my only solution is to go with the sellers to the credit union and explain the situation and see if they will allow the note to be left in place for a few months and freeze the line. Any other suggestions or comments?

[Tatiana Gershanovich]

Hey Shawn,

when an escrow officer request a payoff in the form of a "frozen demand" to the holder of the HELOC, won't it tip off the bank that the house is being sold and it will trigger Due On Sale clause?