If the buyer has a standing line of credit (LOC) such as a HELOC or Commercial LOC, there may not be an appraisal, lien, underwriting process, etc.

If he taps that equity via cash out refinance or HELOC, he in turn owes them.

@Scott PassmanNo was not turned down was actually pre-approved for an investment property at 6.2%, 4 months ago but seller decided not to sell..Then I decided to look at a Heloc to pull equity but realize a refinance with rates being so low now might be the better route.

The first thing I would do if I was you is apply for a HELOC so you can tap into your equity if you haven't done so already.

After reading the responses I applied for a HELOC of my Norfolk Property and increased the limits on my credit cards to raise my own capital for down payment.

HELOC Lessons learned?

Suddenly the Fannie 1st position mortgage is in 2nd position, the HELOC is in 3rd position, etc. 

I just close a brrrrloc last month; paid cash then took out a heloc after closing. 

Also, not sure if applicable but we have a rental in SC that is rented but has a HELOC on it for some renovations so DTI is high now.Numbers:  NJ home sale price = $156,000  - Profit = $45,000 - Projected tax = $25k+  Any thoughts?   

See what kind of offers you can get as-is or possibly get a small heloc to make the necessary repairs.