What’s the current loan balance and terms with the hard money lender?

What I'm thinking is that you may be able to pay the remaining $44k HELOC balance based on your cashflow.

Unfortunately most lack the balance sheet to obtain favorable financing, can't afford to put any skin in the game and fail to make a compelling reason for why the investment makes sense or to justify the structure they are seeking.

The notes, being in default had an unpaid balance of $3.2million.  

But, from this thread above, I'm wondering if not having Balance Sheet a big deal? 

Additionally, I mentioned that I had sent them a small holiday gift card as a token of appreciation (which I send to all of my tenants) and wished their family a peaceful and warm holiday season.Your insights helped me craft a response that balanced kindness with maintaining boundaries, and I truly appreciate it.

It also allows gives you greater flexibility.Plus, once you flip the home and make a few dollars, you should be able to pay the HELOC to a zero balance as well as having extra funds to throw in your war chest.

The key is understanding your risk tolerance, time commitment, and financial goals to find the right balance.

I don't even think its worth a sub-toSounds like you spoke to collections (who will tell you anything to get money) and not loss mitigation, as paying back due balances are NEVER part of a short sale.

You should balance appreciation with cash flow.