Short answer
Your HELOC is a lien on the house, so it is generally paid off in full from the sale proceeds at closing, along with your first mortgage. The title company requests payoff figures from both lenders. If the combined balances exceed the sale price, you would need to bring money or negotiate with the lenders first.
It gets paid off at closing
The CFPB says that if you sell your home, you are generally required to pay off your HELOC in full right away. A HELOC is secured by the house, so the lender's lien has to be cleared for the buyer to get clean title. The settlement agent pays it from your proceeds, after the first mortgage, if there is one.
A title search will list the lien even if you have forgotten about the line.
The order matters. The first mortgage has priority over the HELOC in most cases, which is why the closer pays them in sequence. You do not need to arrange it. You need to provide accurate figures.
What to request
Ask each lender for a payoff letter with a per-day interest amount and instructions for wiring or mailing funds. Ask the HELOC lender how to close the line so no new draws can be made after payoff. A line left open can leave a lien behind. Tell your title company about every loan secured by the house.
Order payoffs early. They can take several days.
Keep the line from growing. Avoid new draws once you decide to sell, because the payoff changes and a late draw can cause a closing delay. If you have a debit card tied to the line, put it away.
Do the math before listing
Add the first mortgage payoff, the HELOC payoff, transfer tax, any commission and closing costs, and compare the total with a realistic sale price. In Pennsylvania the state transfer tax is 1 percent and a local tax of 1 percent usually applies, with Philadelphia at 4.578 percent combined.
If the result is negative, you owe more than the house nets. Talk to the lenders and a housing counselor before you list.
Add up all liens, not just the two loans. Judgments and unpaid taxes can also be paid from proceeds.
If you owe more than it is worth
The CFPB notes that if your home is worth more than you owe, selling is typically better for your money and credit than foreclosure. If it is worth less, the options narrow, and may include asking lenders to accept less than the full payoff, which requires their approval and carries consequences. Get advice from a HUD-approved housing counselor or a real estate attorney first.
Where a cash sale fits
A cash buyer still has to pay off your liens at closing. Kaizen Home Buyers buys as-is, makes a cash offer within 24 hours, charges no agent commission and typically closes in 14 to 30 days or on your date. Tell us about your mortgage and HELOC at 267-329-0084, so the numbers account for both.