Chase Manhattan Bank is currently facing a class action suit after freezing a few too many HELOC lines. The lead plantiff, Mary Yakas, filed the suit after her HELOC was frozen in late 2008 based on Chase’s Automated Valuation Model. Courthouse News Service reports: “Yakas filed a class action, alleging breach of contract and unjust [...] [...more]
It’s been months since banks first began closing HELOC lines due to the worsening real estate market. But, customers continue to receive HELOC freeze and closure notices in the mail. Monitor Bank Rates gives this concerning antedote: “A close friend of mine had his HELOC closed by JP Morgage Chase on a home he and [...] [...more]
Many homeowners worry that a HELOC freeze will have a negative affect on their credit. Although this is a possibility if your HELOC shows up as a revolving line credit reports, most people should not see a dramatic change. WLNS News reports: “For those carrying a balance, fortunately, most credit reports differentiate credit cards from [...] [...more]
Thousands of borrowers have already received HELCO freeze notices. If you’ve escaped the HELOC freeze so far, it may be time to evaluate your finances and figure out how a frozen home equity line would affect you. Examiner.com reports: “…What is the purpose of the HELOC? If it’s a rainy day fund like it is [...] [...more]
We all know that lenders have been freezing HELOC loans to hedge against foreclosures in the down market. But, many banks have another reason: current HELOC rates are lower than they planned for. Smart Money reports: “…Many lenders are not making much money off HELOCs. The cut-throat competition during the mortgage boom had lenders slashing [...] [...more]
Homeowners in states like California and New York have seen the worst of the mortgage crisis. But, negative equity seems to be spreading inland – making more homeowners ineligible for HELOC loans. A recent report summarized on the Calculated Risk blog explains: “Going forward, the largest increases in the share of negative equity will most [...] [...more]
If your home equity line of credit has been reduced by your lender, think twice before reapplying. There are two major drawbacks to canceling your current HELOC and opening a new line: First, your HELOC lender may be able to charge you an early cancellation fee. Second, your home may appraise for a lot less [...] [...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]
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]
