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Profile picture for miciver1

I just had my heloc suspended with out a warning. Can they do that? they said 70% was too high?

  • February 09 2009 - Victory Heights
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Answers (7)

I guess 18 months of global financial meltdown and countless reports of credit tightening wasn't "Warning" enough?

  • February 09 2009
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The thing that bothers me about this is the affect it will have on credit scores. If someone goes from having a 60k balance on a 120k line, to having a 60k balance on a 60k line, their scores will absolutely be impacted. And not in a good way either!
  • February 09 2009
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Profile picture for CORONA NICK
Yes, they can close it with pretty much whatever reason they have.... at prices continue to decline, more and more HELOC's will probably be frozen, reduced, or closed.
  • February 09 2009
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Profile picture for Clearpoint

Give it another hour and someone will tell you how you can modify that HELOC................

  • February 09 2009
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The contract/agreement is unilateral and there is language allowing them to "cite" reasons for trimming/clipping/freezing the LOC.  FL got smoked all of 2008 and still more trimming/freezing in'09.  Just know this:  The rhetoric of "making credit available" is just that: rhetoric.. It is grandstanding political CNBC crap.  We all have torque wrenches and are tightening any and every thing in sight.  Try to refrain from DEPENDING on credit to make your lifestyle complete.  HELOCS, CC's, etc... all can be very shocking and saddening... even to excellent borrowers.  good luck and keep rockin'.
  • February 09 2009
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Profile picture for daveskow
many lenders   have been  " freezing " or closing  or blocking access to  existing  home equity lines for the past 9 mos +  ( due to  the fear of the " decling market values )......I have heard that in some cases  the lender MIGHT  consider unfreezign a line  with an updated appraisal  paid for and presented to the lender for  review  and as long as the maximum line amount  fits into the  lenders  LTV  matrix correctly


FYI- the notorious " local " lenders  around Seattle that have been  doing this are  CHASE and  WASHINGTON MUTUAL  ( which are  actually the same entity now )
  • February 09 2009
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Profile picture for Rob Cochems
if they have proper cause they can close a HELOC at any time. . .
  • February 09 2009
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