More than one homeowner has signed the paperwork for a home equity line of credit, only to decide hours later that the high fees and risk to the property’s title just aren’t worth it. Fortunately, HELOC borrowers are legally permitted to back out of a deal if they notify the lender within three business days. Borrowers [...] [...more]
Last week, I posted about the letter from the Office of Thrift Supervision warning HELOC lenders to follow government regulations. Hopefully, this instruction will encourage banks to avoid freezing individual home equity lines of credit without considering a borrower’s unique circumstance (for example, a home with a high value in an area that is generally declining). IndyStar [...] [...more]
In the last year, terms and qualifying requirements on home equity lines of credit have become extremely strict. Rightly, many unqualified borrowers are now unable to take out home equity loans. However, many qualified borrowers are also suffering under the new requirements. A recent American Banker article explains that lenders should avoid punishing those who would [...] [...more]
According to some reports, Wachovia has continued freezing home equity lines of credit for several weeks. The Philadelphia Inquirer explains: “Wachovia credit-line customers whose home equity has declined 50 percent or more received letters in the last several weeks saying that their credit lines had been reduced or blocked, Wachovia spokeswoman Barbara Nate said. “Our rationale is that [...] [...more]
Yesterday, the Office of Thrift Supervision (a part of the federal government) urged banks to follow the proper regulations when freezing home equity lines of credit. They explain: “Declining home prices in parts of the country are prompting some institutions to curtail, suspend, or terminate customers’ home equity line of credit. Today’s guidance emphasizes that institutions taking [...] [...more]
Interest on home equity lines of credit are extremely low right now, even when compared to traditional home loans. Some financial advisers say that borrowers should consider taking out a HELOC rather than doing a traditional refinance if they want to save on withdrawing equity. CNN Money reports: “HELOCs can be hard to get right now, but [...] [...more]
If your home equity line has recently been frozen, beware of “quick-fix” alternatives, such as the Rex Agreement now being advertised. Rex, Inc. is offering homeowners the chance to tap into their equity, despite the fact that their bank has reduced or canceled their lines. Here’s what the company has to say: “The REX Agreement, available in 13 [...] [...more]
The home equity line of credit (HELOC) is a relatively new lending product. It seems that almost everyone has considered taking out a home equity line during the past few years. But, before the early 90’s, home equity borrowing was practically unheard of. The U.S. EcoMonitor recently published a very worthwhile article detailing the history of [...] [...more]
High gas prices and a struggling economy aren’t the only reasons for declining car sales. Many would-be buyers aren’t purchasing new cars because they can’t withdraw the cash from their their home equity lines of credit. Detroit Free Press reports: “The home equity crunch hurts consumers and consumer-driven companies, including Detroit’s automakers. Art Spinella, president of CNW Research [...] [...more]
Thousands of home equity line of credit (HELOC) customers have received notice that their accounts have been frozen. Many are still wondering if it is legal for banks to freeze HELOCs. The short answer: Yes. Banks may freeze home equity lines. However, they can only do so under specific circumstances. The Oregoneon reports: “In general, banks are prohibited [...] [...more]
