When a borrower takes out a Home Equity Line of Credit or ‘HELOC’, a mortgage/lien is recorded for the full loan amount available to the borrower, even if it was never used or balance due. All HELOCs, as well as first mortgages, will be paid off and closed at the time of sale of the property. Any remaining HELOC checks or credit/debit cards associated with that account are to be destroyed. Any attempt to use or access a HELOC after closing would be considered theft.
April 2nd, 2014