The nice thing about waiting the 6 months is that if you do a cash out after 6 months you can use the proceeds for whatever you'd like whether its to pay down your heloc on your primary or to buy another property.The problem that often happens with DFE is that the underwriter may require you to use your proceeds to pay back your HELOC on your primary or other loans you took out to buy your investment property with cash.

Share your short- AND long-term goals with them so they can help you put together a plan that will help you achieve those short-term goals and reap the proceeds that will fund your long-term goals.  

So what you are seeing in Texas is the case in form in all other proceedings in various states.  

and am sure interested buyers/lenders will contact on how to proceed with the deals.

The court trustee's written approval will also be needed in order to proceed with the loan.

I discovered it looking for an insurance question and then proceeded to ask about becoming a Real Estate Agent.

Thankfully, I was able to hand off the deal to another investor that could close the transaction so the home still sold.With the back to back closings you may need a bridge loan where someone loans you the money to close transaction A and pay it off with the proceeds of transaction B. 

I would like to reinvest all the proceeds (375k) into a local flip (owning second mortgage note) and somehow avoid the brutal tax bill of 89k.

I understand at this point I ought to be talking to one if I still want proceed with this. 

Also in terms of a buyer, if i'm getting a loan from a lender for a turnkey property but i would like to get money out of the loan to finish the basement, what methods could i use to structure a deal to get the seller to give me  the $20,000 from loan proceeds to finish the basement after closing?