Posted by Brent_IL on September 17, 2003 at 17:16:21:
By definition a HELOC is a lien against home equity. A straight LOC, usually approved for less than a HELOC, is unsecured. I think what others may have been speaking about was using a HELOC to fund the purchase of a second property. It wouldn’t show as a lien on the property purchased, but the loan on the home would be the one intended to be paid within a year.
Is a Home equity line of credit always placed as a second lien against the property? I’ve heard different, its not always placed as a lien or a second mortgage. Just that it must be paid within a year after closing on the house, not at the closing because its not a lien? Help PLease Thankyou