Equity Lines

[wendyinoc_IHB]

My friend got a letter yesterday saying they are suspending their equityline. The reason was due to lowering house value. I told her a few months back take what you need so they were to late. So they really can do this?

 

[mino2126_IHB]

Sure why couldn't they? It's nothing more than a c/c that is backed by the value of your home....they raise interest rates and lower them all the time on c/c.

 

[interloper_IHB]

This is common practice right now and your friend is not alone. The banks are trying to stop people from overborrowing.

 

[biscuitninja_IHB]

<p>You should never use your house as a bank account. Yes they can do that, unless you OWN the house you have less of a case for borrowing against the equity and in the end, it is still a CC type equity loan. Anyways good luck</p>

<p>-bix</p>

<p> </p>

 

[Anonymous_IHB]

INteresting link from ex-Tangelo<a href="http://www.irvinehousingblog.com/2008/01/16/shelter/#comment-47944"></a> on the <a href="http://www.irvinehousingblog.com/2008/01/16/shelter/#comment-48160">http://www.irvinehousingblog.com/2008/01/16/shelter/#comment-48160</a> thread

Lenders Rethink Home-Equity Loans

<p>ttp://online.wsj.com/article/SB120044716100193017.html?mod=homes_left_column_hs</p>

<p> </p>

 

[lendingmaestro_IHB]

1.) existing lines of credit are being reduced, sometimes down to the amount the borrower owes.





2.) The Prime rate has dropped and will continue to drop. BUT. Banks are raising their margins rapidly as well as lowering LTV requirements.





3.) No more stated income HELOC's. Most people who need HELOC's are people who need stated income anyways.