He had 12-months to pay off the loan or lose his shares as the underlying collateral.

The collateral file is missing two Allonges.On the title service I purchased it shows the assignments are recorded showing going from A - B and then B - C but no allonges for those transactions.What recommendations do you have?

@Chris Mason Respectfully, not everything is math...there are all sorts of reasons that someone may be in a position to pay a higher rate, these "challenges" (DTI, Credit Score, BK, F, etc) can be overcome by going to person lender who can overlook these and a deal can be "handcrafted", secured against the collateral vs. fitting into some bank's guidelines. 

Trouble I am finding is that the collateral for the HELOC is an investment property. 

@Sal Mazzone Makes sense...will your lender collateralize your properties...or consider a blanket loan?

A mortgage is a collateralized loan, not a personal or business loans (both of which usually need no collateral).  

My concern is if the properties I am financing are involved in a cross collateral agreement that relates the apartment sale, and there is some kind of default, would the bank be able to step in (because their agreement precedes my first trust) and prevail to recover the properties that I have the first trust on?

No one would finance against collateral that cannot be evaluated, wouldn't you agree??

Is it that bank A got a loan from bank B and used the property as collateral and now bank B is foreclosing on bank A?

He told me that a local community bank (wasn't willing to reveal which bank it was) in Atlanta metro area allowed him to use his free and clear single family properties as collateral for multi-family financing.