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More HELOC customers are now delinquent on their loans than have been since 1997. MarketWatch reports: “Delinquency rates for home equity lines of credit and bank cards rose during the first quarter, the American Bankers Association reported Wednesday, citing ongoing housing market stress and general economic weakness.” HELOC delinquencies have reached 1.1% - meaning that over one in [...] [...more]
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Finally, some good news for HELOC borrowers. Recently, the FDIC recently sent a letter warning lenders to follow proper procedure when freezing home equity lines of credit. Here are a few of the most notable points: - According to regulation, HELOC lenders may only reduce a borrower’s line of credit under certain circumstances. - Lenders are permitted to [...] [...more]
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Recently, there’s been a lot of talk about the lack of equity in American homeownership. While home equity loans such as HELOCs allowed people to pay for college and afford property improvements, they were also a drain on the economy. Hot Property reports: “…in at least 63 years, the amount of equity we have in our homes [...] [...more]
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Taking out a home equity line of credit (HELOC) is now quite difficult. Those who planned to tap their equity are considering other borrowing options, such as credit cards. A recent Associated Press article explains: “Net home equity extraction fell nearly 60 percent from a year earlier to $205 billion in the first quarter, according to Merrill [...] [...more]
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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 [...] [...more]
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During the housing boom, many borrowers took out home equity lines of credit (HELOCs) in order to fund property renovations. Now, HELOC cut backs are forcing borrowers to reconsider these improvements. The Wall Street Journal reports: “All this is dinging the remodeling industry. According to Harvard University’s Joint Center for Housing Studies, spending on home remodeling dropped [...] [...more]
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Recent data shows that home prices have made a record year-over-year drop, declining by a whopping 15.3%. This is bad news for HELOC borrowers who risk home equity line reductions from lenders. CNN Money reports: “The overall price declines reported by Case-Shiller have been remarkably consistent over the past two years. Prices on the 20-city index have [...] [...more]
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If your home equity line of credit is reduced, you may have an even bigger problem on your hands. Reduced HELOCs often result in decreased credit scores, which can make it more difficult to take out loans, qualify for credit cards, or even refinance your home. Holden Lewis reports: “Your bank sends you a letter, telling you [...] [...more]
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In the past decade, home equity lines of credit (HELOCs) have become a major source of college tuition funding. If an undergraduate’s parents make too much money or if he is attending a pricey private program, the student may not qualify for competitive federal loans. As an alternative, parents often draw on their home’s equity [...] [...more]
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As home prices continue to drop, HELOCs have become a greater risk to lenders. Losses on home equity lines of credit have skyrocketed during the past few months and many analysts believe this trend will continue for some time. Financial Week reports: “Home-equity lending has grown dramatically in recent years, more than doubling since 2002, to about [...] [...more]
