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Old 02-03-2015, 10:19 AM
 
Location: Inland Empire, Calif
2,887 posts, read 4,803,483 times
Reputation: 2785

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Quote:
Originally Posted by ncole1 View Post
No, unless they want the peace of mind from not having a lien on their property.
With a zero balance, there is no lien on their property.
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Old 02-03-2015, 12:08 PM
 
Location: Hampstead NC
5,538 posts, read 5,055,121 times
Reputation: 13970
Quote:
Originally Posted by thelopez2 View Post
This reads funny, don't let your brother eliminate your parents because of their high credit score.

I think the biggest risk is identity thief. The HELOC can be drained easily like a credit card.
Lol! Believe me, there have been times......

After reading these responses, I suspect my brother's biggest concern IS identity theft. Brother has a laundry list of concerns, some of which I think are valid and some of which I think are silly. He wants to meet with a financial advisor, but mom has been fighting us for years. We have some pieces of the puzzle in place, like POAs, etc, but nor all. This is definitely a team effort and no shady operations on anyone's part. Mom has finally agreed to meet with her broker; I don't think he is the best advisor for some of our issues, but I'm going to contact him in advance with the laundry list to see what he can help with.

IMHO a HELOC is a good thing to have in your back pocket, Especially since Mom is considering a move soon.

two notes:
1) Not all HELOCs expire. These do not, and I have one that will never expire. I inquired at one of the banks, and they were not inclined to close them. I'm sure I could, but I would have to drag mom over there to do it and she just doesn't think it is important. Getting her to agree is a challenge, and making it happen is a BIGGER challenge.

2) You CAN get a credit card for a HELOC. I got one for mine recently. I thought it was strange, at first, but then someone pointed out to me that mortgage interest is tax deductible, and Credit card interest is not, so why not use the HELOC for those unexpected expenses? I don't carry much of a balance, but still....

Thank you for your responses!
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Old 02-04-2015, 04:01 PM
 
Location: Southern California
4,418 posts, read 5,275,640 times
Reputation: 2167
It is a card that can be used where credit cards are accepted but not technically a credit card.
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Old 02-04-2015, 04:14 PM
 
12,694 posts, read 9,926,342 times
Reputation: 9487
Quote:
Originally Posted by Nayabone View Post
With a zero balance, there is no lien on their property.
The lien can only be removed by CLOSING the home equity line of credit:

http://homeownership.org/news/happen...-zero-balance/
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Old 02-04-2015, 06:47 PM
 
Location: Inland Empire, Calif
2,887 posts, read 4,803,483 times
Reputation: 2785
Quote:
Originally Posted by ncole1 View Post
The lien can only be removed by CLOSING the home equity line of credit:

http://homeownership.org/news/happen...-zero-balance/
True, but the lien is for zero dollars, so what is the damage involved. If they wish to enforce a lien against a zero balance, they won't get much..!
The story said you can't sell property with a LOC open. Not true. I sold my last home with an open LOC. The loc is paid off in escrow before you receive funds from the sale.
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Old 02-04-2015, 07:18 PM
 
466 posts, read 477,257 times
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The question still has not been answered whether parents are mentally incapacitated in some way. The children are certainly very involved...
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Old 02-05-2015, 12:44 PM
 
12,694 posts, read 9,926,342 times
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Quote:
Originally Posted by Nayabone View Post
True, but the lien is for zero dollars, so what is the damage involved. If they wish to enforce a lien against a zero balance, they won't get much..!
The story said you can't sell property with a LOC open. Not true. I sold my last home with an open LOC. The loc is paid off in escrow before you receive funds from the sale.
Refinancing may be difficult, though. Even a zero balance lien would need to be re-subordinated, right?
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Old 02-05-2015, 12:48 PM
 
Location: Omaha, Nebraska
7,236 posts, read 4,110,132 times
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Quote:
Originally Posted by ncole1 View Post
Refinancing may be difficult, though. Even a zero balance lien would need to be re-subordinated, right?
It's not too tough - you just close the HELOC before you begin the refinance process. Tales all of 10 minutes at the bank to do it. I had a zero-balance HELOC on my house before I refinanced it, and it caused no significant delays in the process.
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