I was about to bid on a CA property in which the 1st was foreclosing. The 1st was recorded on 9/2005 in the amount of $500k. When I contacted my title company they told me there was an open $80k HELOC made 1 year prior to this 1st foreclosing loan and that the title person did not see a reconveyance on that $80k HELOC. On FR, I see no HELOC on this property. He was not able to tell if all, some, or none of that HELOC was used. The NOT recorded on 5/13/2008 shows an amount of $534,478. Then another NOT recorded on 6/21/2010 shows an amount of $650,897. Is it possible that $80k heloc was clumped into the NOT amount since $534,478(as of 5/08) is substantially smaller than the NOT amount of $650,897(as of 6/21/2010).
I did not inquire with the title company if the heloc was the same as the 1st TD recorded in 2005. I’m a little bit confused as to what’s going on here. I noticed that the property reverted back to the bene today but if the 1st did in fact drop the bid low enough and I ended up buying the property, would I have been stuck with this HELOC?