Buying Sub-2 a HELOC?
I am looking at a house down the street from a current rental I own. The owner of 50 years just passed away, and the closest surviving kin is a nephew. He's looking to move out of state soon and wants the sale of the house to cover an existing, maxed-out $15K HELOC, as well as potential medical/Medicaid expenses from her final days. He's just starting probate, so there are lots of unknown unknowns.
The house is currently worth around $20K. There don't appear to be any significant structural issues - mostly cosmetics and a new kitchen and bath. While I would purchase it as a buy and hold, flip ARV is in the neighborhood of $75K.
While I am able to do all cash, I am intrigued by the possibility of purchasing subject to the existing HELOC. This is theoretical at this point, as I haven't seen the documentation of the loan or other details. I'm able to cover the loan if the DOS is triggered without problems. Assuming that the interest rate on the HELOC is viable, is this any different from a regular subject to deal? What safeguards, if any, can be put in place to prevent the seller from drawing on the HELOC in the future?