Hi. I bought a home today at a Trustee Auction and need to take care of a 2nd HELOC now. I?ll try to explain the situation clearly. ?
The former owners mortgaged the home in early 2002. ?
They pulled a WAMU HELOC for 70k in late 2002. ?
They got a new mortgage (from Wachovia) on 02/2003, and paid off the first mortgage with that money. ?
They modified the HELOC to 200k in 2006. ?
They foreclosed on the Wachovia/WellsFargo mortgage today. (this is the one I paid off). ?
The title company told me that since the HELOC was pulled before the last mortgage, it is senior to the main mortgage.?
However, Chase insists that their HELOC is secondary, and therefore subordinate to the WF mortgage.?
I can not find any written record thought that would subordinate the HELOC to the new mortgage. ?
Should I just wait for the deed and then file it with Chase and request a reconveyance certificate? ?
I have a feeling they will come back and try to say that the HELOC was pulled a few months before the WF mortgage and therefore not secondary. ?
Is it automatically secondary simply because it is a HELOC? ?
I would appreciate any feedback/comments! ?Thank you!