Use this timely letter to inform your clients with Home Equity Lines of Credit of the growing trend among lenders to freeze HELOC withdrawals in markets with declining home values.
And while the letter also encourages your clients to call you immediately to discuss their options, be sure to follow-up the letter with a phone call. With the Fed's recent trend of cutting rates, which has been very good news for borrowers with HELOCs, your clients may not understand how this could actually affect them. This is your chance to brand yourself as a local mortgage market expert within your community.
Don't let your clients get blindsided!
Dear Valued Client,
There's a growing trend among lenders that I feel compelled to tell you about.
Several major lenders are freezing withdrawals from Home Equity Lines of Credit (HELOCs) - and I don't want you to be caught off guard by this development.
Don't Get Burned by the HELOC Freeze
HELOCs, though secured by your real estate, are treated by lenders as consumer credit. And just as a lender can revise the terms of your credit cards, or even cancel them, the same can be done with your HELOC.
Previously, HELOC withdrawals were usually only frozen for reasons such as bankruptcy, declining credit and payment problems.
While these events can still cause a freeze, there's another factor that lenders are considering more often today: the value of your property. You should be aware that the lender retains the right to suspend or reduce the line of credit available if your property value falls below the appraised value used to originate the loan. Lenders are actively assessing properties and then suspending access for account holders who have seen a downward slide in their home value.
If you're in a market that has seen real estate values decline, then access to your HELOC may be at risk. Your financial security and success are my highest priority. Please call me to discuss your options in this rapidly changing marketplace.
"Just leave me a Loan"
Thank You,
Jeff A Pickering
The Pickering Group
41601 North Congressional Drive
Anthem, AZ 85086
Phone (623)551-9360
FAX (866)451-8488
Email: jeffpickering@helloworld.com
Website: http://www.pickeringgroup.com/
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