You received title to the premises. The issue is not who is the owner - the issue is priority of liens. The general rule is first in time, first in line. Since the prior owner's HELOC was not paid off, it would be superior to the mortgage that your Buyers would obtain. It was the duty of your closing attorney to see that it was closed - and it is likely fraud by the prior seller to continue to take advances. However, you cannot sell the property until that HELOC is paid off or otherwise discharged.
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