Florida’s new Senate President is speaking out against banks that hoard federal bailout money while simultaneously reducing customer’s HELOC lines. A recent release from his office explains: “…Mike Haridopolos today called for hearings in Tallassee to investigate claims that after banks received hundreds of billions in federal bailout money they squeezed consumers and fraudulently or [...] [...more]
If you don’t pay your home equity line of credit, your HELOC lender could force foreclosure proceedings. But, many HELOC lenders are reluctant to start the process and would rather work out a solution with borrowers. The San Francisco Chronicle explains: “…Most second trust holders are reluctant to institute foreclosure proceedings. There is an expense [...] [...more]
Here’s some advice you don’t hear every day. Contrary to what has always been suggested, some financial experts are telling HELOC borrowers to hold off on paying back their lines. Liz Pulliam Weston of the Los Angeles Times explains: “If you’re convinced you’re on track there and you don’t have any credit card debt, the [...] [...more]
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]
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]
A recent study shows that 1 in 6 Americans now owe more on their mortgages than their properties are worth. Zillow reports: “As home values declined through 2008, more American homeowners have become underwater on their mortgages. At the end of the year, one in six (17.6 percent) of all homeowners had negative equity. This [...] [...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]
This has been the big question of the past few months. Some financial advisers suggest that borrowers cash out their HELOCs to protect against possible freezes. But, others are suggesting that panic-stricken withdrawals are a bad bet. KSN News reports: “If they are paying interest just to hold that money to me that’s counterproductive,” said [...] [...more]
There has been a lot of finger pointing lately. Home equity borrowers are defaulting, lines are being frozen, and over 70% of lenders are reporting tougher standards for new HELOC borrowers. Who’s to blame? According to the Washington Times, it depends on who you ask: “Why the sudden stiffening of HELOCs? It’s the economy, banks [...] [...more]
