DO NOT PUT $3K ON YOUR HUD, you will waste time & it will be rejected.
Do not offer any less than 10% if this was a "purchase money HELOC option" where none of the HELOC money was ever cashed.
Prepare your client, if they did cash in on the Full HELOC funds that the 2nd lien will want 20-30% of the balance to release them of the lien as paid in full. You can still get 10% from the 1st lien holder & tell the buyer up front about this because they'll likely need to also donate.
If HELOC funds went solely towards upgrading the property & your client has proof with receipts, the HELOC 2nd lien may accept less than 30%.
Email me directly if you'd like some more tips. I don't look back on this same trulia posting for answers after mine.
Realtor Since 1996
Main Street Realtors
Short Sale Expert