The current "silent" loan should show up when the HELOC lender pulled title. So the new lender might already know about it. They would have to put that loan in 3rd position behind the new HELOC. It's possible that the Hardest Hit Fund loan is okay being in 3rd position, but that would kind of surprise me. If it were me, I would make sure the HELOC lender knows about it. If they missed it, they could come back to you when they see the original application didn't disclose the existing 2nd mortgage. Hopefully, they already know about it and have gotten a subordination from the organization that issued the Hardest Hit loan. It would be disappointing if they denied the loan due to it, but I'm afraid of what they'll do after loan closing if it comes up. I wouldn't want them to come back and say you need to pay off the Hardest Hit loan, or the new one.