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Can i take a hel or heloc on a house was quitclaimed to me and is paid off? The grantor still owes on his heloc on this house.

by Jseitd_818_379 from Saint Louis, Missouri. Apr 2nd 2013 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,619 contributions

You have left out some important details, so it's hard to give you a detailed answer, but based on your question, I have to assume the following.. you were never on the title or loan (HELOC) to this home, but instead, it's since been quit claimed to you.. The home is not "Paid off" since you stated the original owner still owes on his HELOC on this home.. All deeds of trusts have a "Due on Sale" clause.. when he "Quit Claimed" the home to you, the HELOC should have been paid off, so right now he's in breach of contract.. If you, the new owner, chooses to take out a loan on the property, you must pay off the HELOC that is currently still attached to the property.. there is no lender in this country that would lend to you and leave the existing HELOC in place.. so any financing you do on the property will have to include paying off the existing HELOC.. since all lending programs are based on "Loan to Value", it's important to know how much the home is worth in order to determine how much $$$ you can finance.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Apr 3rd 2013
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Ken Burrows (mortgagesforamerica)
#20 ranked lender in Nevada - 572 contributions

I think it would be very tough if the grantor still has a mortgage on the home.

Apr 2nd 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 397 contributions

HELOCs are usually in 2nd position so it's worth looking into. Speak with a local bank or credit union or any lender on this forum that reaches out to you. Good luck!

Apr 2nd 2013
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Joe Metzler (JoeMetzler)
#19 ranked lender in Minnesota - 3,876 contributions

Generally speaking, if you are a legal owner of a home, you can apply for a loan against it. If there is an existing loan against the home, of course that may effect your ability to get another loan against it. Contact a local mortgage broker for more details and assistance. In MN or WI, visit www.Minneapolis-Mortgage.net

Apr 3rd 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,237 contributions

The house isn't "paid off" if there is still a HELOC on it that has not been paid and closed. Your HELOC would be in 2nd position behind that one, but it should be possible if there is enough equity in the property plus normal loan qualifications

Apr 3rd 2013
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George Dokos (georgedokos@movementmortgage)
#57 ranked lender in Virginia - 25 contributions

If you are an owner of a property you can take a heloc on the property if you qualify.

Apr 3rd 2013
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Eric Blossman NMLS 211144 (eblossman)
#116 ranked lender in Texas - 63 contributions

The assumption I am having to make here is that both you and the grantor were initially on title as co-owners. At some point, the grantor quitclaimed his/her interest to you but did not payoff their home equity loan. So now you are the sole owner on title, but the grantor still owes on a home equity line to which he/she used the property as collateral. If this is the case, then the grantor would need to resolve this lien at some point to truly quit claim his/her interest. Whether or not a lender will allow you to cash out on a refinance would depend on whether or not after you add in this HELOC to your loan to value is there sufficient equity. A lender will not ignore this lien because the co-owner has quitclaimed. This lien would also have to be kept current as well. My suggestion to you would be to speak to a local lender as your situation is more in depth then you will be able to resolve on this forum. Best Wishes!

Apr 3rd 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

Even though you have been given title to the property via the quit claim deed, the Grantors HELOC is still open and would need to be satisfied and discharged as a condition of the approaval of your new HELOC.

Apr 3rd 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#76 ranked lender in Florida - 2,240 contributions

You may have to go in first lien position, how can the house be paid off if their is an existing heloc on it?

Apr 3rd 2013
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Dave Metsker (DaveMetsker)
#38 ranked lender in Oregon - 2,317 contributions

You may need to apply for a total refinance.

Apr 3rd 2013
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

It will depend on how much equity is in the property along with your general qualifications. Contact a local loan officer for help.

Apr 3rd 2013
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Jason Robinson (CFIsupport)
#58 ranked lender in Georgia - 106 contributions

Technically the home is not "paid off" if the grantor still "owes" anyone. Have you seen the title/deed yet?

Apr 3rd 2013
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Mark Maroon (mmaroon@primeres.com)
#12 ranked lender in Maine - 9 contributions

Yes, but in the process of the new HELOC, you or the grantor would need to pay off the original one. Should be easy if the math works

Jun 30th 2017
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