While there are basic rules/guidelines for 1st mortgages (FNMA, VA,FHA etc) because the loans are either bought, guaranteed or insured, there are no set rules for 2nds or HELOCS.
20 different institutions could all have different rules.
Regardless of the fact that you do not have a penny drawn on your ($70,000) HELOC,
I am sure that there is a 2nd trust deed for $70,000 recorded. A HELOC is a 2nd when you have a 1st.
I don’t think that ANY institution is going to give you a ‘3rd’ TD at any rate.
You will even have a hard time finding a hard money lender to loan you any money, even at 12%-16% rates.
Add to the fact that you have no current income, you are in the unfortunate situation of having a bunch of equity that you cannot get to.
Nobody ever seems to expect it to happen, but this is why I explain to people that a low payment obligation with the option to pay extra at any anytime is a safety cushion vs. wanting a 15yr loan to pay off sooner.
Being in a rush to pay off a mortgage by obligating to a higher payment is not the right choice for many people but they make it foolishly.
I realize that this may not be the case for you, but I am seeing a lot of people with trapped equity and no way to get to it.
