If you’re a HELOC borrower facing foreclosure, Obama’s new Homeowner Affordability and Sustainability Plan has something for you. The housing plan has a provision that allows “mortgage cram-downs,” a highly controversial practice that allows bankruptcy judges to alter the terms of a mortgage at their discretion. Basically, when the plan becomes law, you could file [...] [...more]
If you have a HELOC from Wells Fargo, be on the look out for a “plain looking” envelope in the mail that alerts you to an interest rate adjustment to over 10%. According to borrower reports, some homeowners are receiving these increases without missing any payments or otherwise violating the terms of the home equity [...] [...more]
New statistics show that the year of denial may be coming to an end. Everyone knows that home prices have been declining, but no one wants to admit that their own properties have been affected. I’ll admit to watching homes in my neighborhood sell for less while rationalizing my own inflated value saying “Well, my [...] [...more]
According to recent numbers, J.P. Morgan (the company that purchased Washington Mutual) now has the highest percentage of 2nd lien loans such as home equity lines of credit (HELOCs). A recent Seeking Alpha article reports: “For now, let’s realize that the JPM/WaMu combo has the highest concentration of 2nd lien loans (and Option ARMs) in [...] [...more]
Applying for a HELOC loan is extremely difficult in today’s market. Lenders have already trimmed lines and they’re anxious about taking on new borrowers, especially those without a stellar financial record. NY Daily News reports: “Looking to get a loan for school? A car? A house? Fat chance. Billions of dollars have flowed into bank [...] [...more]
According to new reports, a whopping 40% of banks recently reduced home equity lines of credit. The Associated Press explains: “Many banks have made it harder for borrowers to obtain all kinds of loans over the last three months despite a $700 billion federal bailout program and a flurry of other bold moves to stem [...] [...more]
HELOCs are no longer the popular commodity they once were. Now that tapped-out homeowners realize that property values won’t “always go up,” they’re more reluctant to apply for new lines. The recession has caused fewer homeowners to apply for HELOC loans and more people to curtail their spending (presumably, some of those spending reductions will [...] [...more]
A lot of homeowners are drooling over recent rate cuts and considering jumping on the refinance band-wagon. If these low rates are tempting you as well, be aware that your home equity line of credit could impede your decision to refinance. In order to change the original loan, you need to get permission from the [...] [...more]
According to the National Association of Realtors, there was a 6.6% increase in home sales last month. CNN Money reports: “While focused in part on quarterly earnings and a report showing a drop in consumer confidence, investors also found themselves basking Tuesday in the afterglow of surprisingly positive data on the U.S. housing market. “When [...] [...more]
According to a recent Consumerist post, it seems that a new batch of borrowers recently received HELOC freeze notices from Countrywide. Banks are getting less selective about who they choose and are now cutting off access for people with good payment histories and existing equity. In today’s market, lenders are freezing HELOCs just because the [...] [...more]
