I heard today that several major lenders are freezing withdrawals from HELOC's. Is this the next trend we are going to face? It's really logical - they are considered consumer credit and if a bank can revise the terms or cancel your credit card, why not your HELOC? But I don't have to like it!
In our Arizona market, the values of property are declining. We are faced with tons of short sales and foreclosures. If the value of a property falls below the appraised value used to originate the loan, lenders have the right to suspend or reduce the line of credit.
Add the declining market to the bank's HELOC freeze list of bankruptcy, declining credit, and payment problems. Puts a freeze on the new pool, addition to the house, boat, vacation - all the fun stuff!
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LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes
Lynette this is true I have heard lots of HELOCs being frozen. It's going to be a bumpy road this year but we will all make it through just a tad bit stronger.
Mar 28, 2008 02:46 PM
Samson Properties - Chantilly, VA
Northern Virginia,Washington DC & Maryland Realtor
Lender's in our area have freeze HELOC for past several months due to the factor we fall under declining market. But with the recent increase in the FHA & Convention loan limit hopefully lot more people can refinance.
Mar 28, 2008 02:48 PM
REISA - 317-663-4173 - Indianapolis, IN
Yep. Happening all over the place. When you look at new guidelines not many folks at all will qualify
Good Post
Tony
Mar 28, 2008 04:31 PM
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