Tips for Refinancing a HELOC after Divorce

[Christopher Erwin]

Hey BP community, need some help re financial planning for my parents. 

In the event of a divorce where 1 of the 2 signatories wants to be removed from the HELOC, the bank instructed the HELOC will have to be paid off before any signatory can be removed. We offered to put a CD in the bank for the same value of the loan, and they said they can not accept that.

Refinancing through the same bank or another will be challenging since the remaining signatory isn't employed, but does have the house and cash as collateral.

Another options is for me to co-sign a new loan, but I really don't want that liability. 

Any ideas on how to refinance the HELOC or get another LOC, considering the credit profile of the remaining signatory?