That could be balanced out by the peace of living there.

Now I have absolutely no information if there is a remaining balance for this line of credit.

In this case, if any negotiating were possible, I'd offer a check for 25% of the loan balance and ask for a short term note on balance, even 5 years would be fine. 

If her Mortgage balance is 75k, she's walking away with 95k, with a fast close (15-30 days), she doesn't have to pay 6% to a realtor, she doesn't have to do 25k in repairs, and she doesn't have to wait 3 months, and be 3 more months behind which would put her out another 6500.Let's look at those numbers 285k -6% -Closing Costs -Repairs -Holding CostsSo: 285k - 17,100 = 267,900

The existing account balance will be inject into the property.

The business has a credit card with a $0 balance.

Hi everyone,I'm in the process of refinancing a mortgage and would like to hear your opinions on these two options.For illustration purposes let's say the mortgage balance is $30k and I'm going to refinance it into either a LOC at 6.25% or a 15 yr note at 5.5%.

If so, You might replace it with a newer black or white unit, then pick up some trim and frame it out like a fireplace with a mantle on top. make it look like it is supposed to be there ;) Since you will occupy and your tastes aren't Victorian, look up "black trim" on Houzz and it can help you find a balance.

If you're worried about whether they will be able to pay, have them bring copies of bank statements so you can see both their balances AND whether they're paying their rent on time.

As for leveraging property, I've been told by friends in the banking world that they basically want a direct line to the leveraged property, not just assurances from a balance sheet.