A lien on property is not quite the same as a personal claim against you. The personal claim is discharged in the bankruptcy, but the mortgage lien (which is after all what a HELOC really is) is not automatically discharged. The lawyer who represented you in your Bankruptcy should be able to advise you on whether it is possible to reopen the BR case and somehow be rid of the lien or else get rid of the lien some other way. For example, if the balance owed on the first mortgage exceeds the value of the home, you could consider going to state court for a declaratory judgment that the HELOC lien has no value. This could well permit title insurance to be written. If you have not yet retained a lawyer well-versed in real estate, this is a good time to do so.
Answered on Aug 29th, 2016 at 6:23 PM