From the thousands of customers affected by the HELOC freeze, many personal stories have emerged. Magazines, blogs, and newspapers have all shared tales from these surprised borrowers. Here are a few of the most notable:

- A couple had worked towards adopting a child for years. When nearing the end of the process, their HELOC funds were frozen unexpectedly making it impossible for them to continue. (Boston.com).

- A man was planning to fund his kitchen renovation project with a line of credit. He received a HELOC freeze notice…right after the contractors had ripped out his cabinets and appliances. He ended up storing food in a mini-fridge while trying to secure a private loan with bankers. (TheStreet.com).

- After making a large $10,000 payment, a borrower was notified that his credit line was closed. He later wished he had made the minimum required payment of just $350. (L.A. Land Blog).

If there’s a lesson in all this, it’s that borrowers should be prepared for HELOC freezes. If you plan on using your home equity line, don’t wait until a bill is due to withdraw the cash.

Do you have a HELOC horror story? Let us know: helocbasics@gmail.com.

See Also:

HELOC vs. Home Equity Loan

Update - Which Lenders are Sending HELOC Freeze Notices?

Tags | Heloc, heloc freeze, mortgage crisis