Usually the second would be an HELOC or non-purchase money loan.I would recommend sellers having an attorney review settlement letters as well as making the funding arrangements.

We own our primary residence home worth $200K - $260K with a second Heloc on it for $23K currently owed on a recently closed Heloc, we had for years from Wells Fargo and live in PA and own combined income is probally a bit under $100K a year (Gross) and the townhouse is in Charlotte NC?

During the 125% heloc days I got a stack of checkbooks from putting heloc's on everything I could.

.$100,000 5 credit cards of $20k each 65,000 HELOC loan on the 4 unit 12,000 Funeral expenseWith this debt of $177,000 the numbers don't work.

Mortgage debt is looked at more favorably by fico.We got caught up a little when heloc's go cancelled/frozen in early '09.

I'd bet that the second HELOC was used to pay off the first HELOC, and then some credit cards, and then some other bills - at least that is more typical of what I have seen: Property is over-leveraged, and condition nowhere near to looking like what it would if the HELOC funds were actually used in imprioving the house.But maybe you're seeing one here that is an exception ...

Originally, I was going to have the LLC own it free and clear and get it reappraised after 90 days and try to get around 60% with a HELOC (hopefully without my name on it--just the LLC on it) to fund another SFR.

No refi at all both have 2nd HELOCs but are purchase money as they did 80/10/10 on both.

I thought okay..that sucks but maybe after a while I can go to the bank and get a HELOC.

Then I could be getting a big heloc to buy more rehabs.