This is a business, so look at every obstacle and try to come up with a solution (not to be confused with a short cut!).  

His solution will keep the water out.

Even at this hour, we are still hoping we can find a viable solution and are available at any time that suits you to discuss this again to find a solution.Yours truly,Alexander CaravitisCo-founder & CEOHosthub

The property is in the US Virgin Islands.Do you have/know any solution?

The HELOC is a more short term solution, usually 10 yrs or less. 

Hopefully it will be a cost-effective solution for an instant 8-plex.

S she thinks the solution could be to obtain a quit claim deed from VA office and then it'd be up to me to deal with the lender?

That is definitely the concern with using a HELOC as a long-term solution.

They never seem to tell you this as it is some type of private label service...you call and you think because they answer X CU, that you're talking to X CU, but in reality you're talking to their 3rd party outsourced loan vendor, probably Colonial or Credit Risk Solutions.    

Simple solution - contact your insurance company and let them handle everything.