As a mortgage broker here in lovely Ridgefield, CT, I have received numerous phone calls from homeowners who have taken out HELOCs - home equity lines only to find after only using a portion of the HELOC, their bank tells them, "WHOA" - no more checks to be written against this loan.  With the declining home market, many homeowners are finding themselves "underwater" or "upside down" in their home loan situation.  Equity has decreased due to falling prices therefore many banks are saving what they can by curtailing the use of further funds from HELOCs.  These HELOCs don't necessarily have to be paid off, but use must be curtailed.