Mortgage On Line
When they sell a home is a home equity line of credit is considered as a second mortgage or a line of credit?
Can I sell a home with just a mortgage with first priority, gather equity and continue to pay my HELOC as if it is a line of credit? or will I have to take it in my home sales (and possibly a short sale)?
The HELOC is secured by your home (read your loan documents.) It probably has a reason to transfer clause, which means that if you transfer your ownership of the property, the loan becomes immediately due and payable. Typically this means that you must pay the HELOC proceeds of sale (or you must bring enough cash to settle it by closing time). Anyone with any sense would not buy the property with an outstanding mortgage to HELOC, because if not paid, this lender still exclude (the lien would prevail over the sale or transfer that you make now).