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HELOC Loans Not Easy To Get..

Have you heard, lenders and closing the doors on home equity line of credit. Why, according to reports in the Sentinel, lenders are also worried about real estate values, etc. So for some who were depending on their equity to be there, it's now tougher than ever to find a lender willing to lend you some money.

Posted by Netta Blackwood - REO/BPO Expert on 04/17/2008 06:02 AM

Comments (7)

heloc, home equity line of credit

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7 Comments on HELOC Loans Not Easy To Get..

APR

2008

The worst part of this situation is for persons who already have a line of credit. Banks are locking the credit line at the outstanding balance. Borrowers, who were drawing down a little bit every month to make payments on other property, now find themselves without any new funds. and still have to pay on the credit line. I've had several calls this week from folks who are in a terrible bind all of a sudden. Actually, they have been in a bind for quite awhile, but the freeze on their credit line just brings it to a head.
JimG

Hi Netta-part of the problem is not only equity positioning, it also has to do with insurance. One bank stopped doing seconds because the insurer withdrew backing the portfolios for this bank which is I think part of the Mortgage Back Securitization process.

My opinion is that we will have double digit interest rates in about 3 years to five years and you will see one of the strongest buyers market copared to any buyers market seen in the past 40 years!

I have an equity line and as we pay it off we were going to use it for other things now who knows

Netta - This is all a sign of the tightening credit, credit was so easy in the past, now it is like the pendalum is swinging really hard in the other direction.

Please call it what it is: A SECOND MORTGAGE.

I have to agree with Jim people who have HELOCs then cant use the funds they were approved for because they freeze the account because the home wont appraise anymore. I got lucky and received my heloc, I fought for the thing with people in underwriting but by golly I got it.

I saw this coming back from last year and yes, I took advantage of the opportunity to take out some equity for emergency use. I sure hope there will be some exception to this rule. If not, if the thing the market is bad now, wait until the next couple of months when some who were counting on their equity now have no other alternatives.

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