Most home equity lenders claim to have some sort of appeal process for borrowers facing line reductions.

According to a Wall Street Journal article, Bank of America is willing to reconsider their HELOC freeze decisions. If the borrower can prove that their property has not lost as much equity as believed, the lender may be able to restore their limit.

“Banks including Bank of America and Washington Mutual say there’s a process in place for customers to appeal these decisions. Washington Mutual spokeswoman Sara Gaugl notes that its clients who have had lines decreased often still have access to available credit.

“If the homeowner feels their situation is different, we will listen to them, particularly if they have an independent appraisal that shows their home has been spared from neighboring drops in home value,” says Bank of America spokesman David Bradley.”

Unless the lender’s property really has retained its value, there is little chance of getting a reversal. However, if your HELOC line has been frozen, it’s always worth asking.

See Also:

Lenders Freezing HELOC Lines

What to Do if You’re Hit by the HELOC Freeze

Tags | Bank of America, Heloc, heloc crisis, heloc freeze, home equity line of credit