HELOC or Cash Out

[Kit Jackson]

Maybe a dumb question but what the heck. My primary home has a first mortgage but the SBA has a lien on my home and in 2nd position. This lien will fall off in 9 years according to an attorney but I don't want to wait that long. I have a good amount of equity and was wondering if it is at all possible to get either a HELOC or cash out in someway to possibly offer a OIC to the SBA and get it off my house. This would put a new loan in 3rd position until I get rid of the lien currently in 2nd. Is that possible?

[Erik Estrada]

Quote from @Kit Jackson:

Quote from @Erik Estrada:

Quote from @Kit Jackson:

Maybe a dumb question but what the heck. My primary home has a first mortgage but the SBA has a lien on my home and in 2nd position. This lien will fall off in 9 years according to an attorney but I don't want to wait that long. I have a good amount of equity and was wondering if it is at all possible to get either a HELOC or cash out in someway to possibly offer a OIC to the SBA and get it off my house. This would put a new loan in 3rd position until I get rid of the lien currently in 2nd. Is that possible?

Having a 3rd position lender is very unlikely. You will either need to payoff the second via a HELOC or second mortgage or refinance the entire note (both 1st and second)

So could I get a HELOC even with this lien in 2nd position? If I could get a HELOC I'm hoping I could offer a OIC on the lien.

Yes you can, but the HELOC will need to payoff the current second at closing.