[gackle]

Caveat: I am not a financial expert and know nothing about HELOCs.

Two things stuck out at me: First, it sounds to me like your mom would be getting the sweet end of the deal on this one. She is making no payments on the house and she wants to take out a loan on the house? Uhh, no!

Second, don't trust the person doing the HELOC. It doesn't make sense that you would not be affected by it if you have to approve it. All he wants is your money because that's his line of business. Do your own research on this. If you need to, utilize a third party that's knowledgable in this area that has no interest in the deal.