If your HELOC has been frozen or reduced, you may be able to fight back. Many home equity lenders are offering borrowers the chance to reverse these actions by proving their home’s value.

Kiplinger reports:

“Lenders who pull the plug will invite you to contact them to discuss your situation and appeal the decision. You may have a case for appeal given that the “automated valuation method” that lenders use to determine property values tends to paint with wide, geographic brush strokes. To prove your case, you’ll have to pay for a walk-through appraisal of your home, which could cost you $200 to $400. Or you may be able to provide “comps,” a record of recent compar-able sales in your area (your lender will tell you how recent and how near)…

Countrywide’s letter also advised borrowers who had outstanding checks to contact the company to discuss how they would be handled. Borrowers who had planned to use their line of credit for a major expense within the month were told Countrywide would try to work with them. Homeowners in the midst of major home-renovation projects were asked for signed statements from their contractors. Washington Mutual spokeswoman Sara Gaugl says that her company, too, “will continue to assist customers who may have unique or special situations.”

For more actions you can take to combat the HELOC freeze see: What to Do if You’re Hit by the HELOC Freeze.

Tags | Heloc, heloc freeze