I'm not sure how you can buy a new house with a HELOC - does she have other property that she pledged as security?
If it's simply a matter of worrying about the HELOC, all she is responsible for is the amount actually drawn against the line of credit; it doesn't matter what that the limit is twice the value of the house. As long as she doesn't continue to draw against the HELOC, there's no more debt being incurred.
That being said, HELOCs are usually adjustable rate, and that could become a problem very quickly... You might want to talk to her about consulting with an accountant or a financial advisor (or a lawyer) about a better way to do this.
I agree with you that the casual attitude of the loan officer is not acceptable - even if she was personally offended by your concerns, that doesn't make your concerns any less valid. I would go over her head an complain to whoever is next in the chain.
And for the person who posted about how comforting it was to have the HELOC available - just be aware that it appears on your credit report AND exists as a lien against your property for as long as the HELOC is open, even if you've paid it down and don't draw against it. This doesn't matter for some folks, but may be a big issue for others.... |
