Can I get Mortgage on Property I Sold on Land Contract

[Joseph Back]

I have a friend who owned a house free and clear and sold it to a buyer via a land contract. The house is worth about $120,000 and there is a balance of $75,000 still owed on the land contract to my friend. The monthly payment he receives is $685. My friend is in a pinch financially and is willing to sell the house to me for $50,000. So I would essentially be buying a $75,000 note for $50,000 and be very protected if the land contract buyer defaults because the home is worth $120,000. I am wondering if I buy the home for $50k, will I be able to take a HELOC or mortgage out on it despite in being sold via land contract? Would like to refund myself the $50k with low interest rate HELOC and collect the spread between the land contract payment and my HELOC payment.