The HELOC Nobody Remembered

Here is a scenario we see repeatedly. A seller lists their home, tells us there is one mortgage, and is entirely sincere. The search comes back with two liens.

Why it happens

Home equity lines of credit are opened and then forgotten. The balance is zero, no statement arrives, no payment is due, and the owner genuinely does not think of it as a loan on their house. But the lien is still recorded, and an open line means the lender could still advance funds against the property.

Why a zero balance is not enough

Paying a HELOC to zero does not close it. The line remains available, the mortgage securing it remains recorded, and no title company can insure clear title over it. The account must be formally closed and the lien released.

What that requires

• A written request to the lender to close the line — not just pay it off
• A payoff or zero-balance letter confirming closure
• A recorded satisfaction or release of the mortgage

Lenders are slow at this. Two weeks is common, longer is not unusual, and it cannot begin until the seller makes the request — we cannot close an account on their behalf.

The cost of finding out late

If it surfaces a week before closing, the date moves. There is no workaround: the release has to be recorded, and that runs on the lender's timetable.

What to do

Sellers: list every line secured by the property on your intake sheet, including any you have not drawn on and any you believe is closed. If you are unsure whether an old line was ever formally closed, say so and we will check the record. Finding it in week one costs nothing. Finding it in week five costs your closing date.

Note: general information for Pennsylvania and Alabama property owners, not legal or tax advice. Rates, taxes, eligibility and deadlines are set by statute and by each state’s filed rate schedules and can change. Confirm the specifics with us and with a qualified professional before relying on them for a transaction.