According to the National Association of Realtors, there was a 6.6% increase in home sales last month. CNN Money reports: “While focused in part on quarterly earnings and a report showing a drop in consumer confidence, investors also found themselves basking Tuesday in the afterglow of surprisingly positive data on the U.S. housing market. “When [...] [...more]
According to a recent Consumerist post, it seems that a new batch of borrowers recently received HELOC freeze notices from Countrywide. Banks are getting less selective about who they choose and are now cutting off access for people with good payment histories and existing equity. In today’s market, lenders are freezing HELOCs just because the [...] [...more]
HELOC freezes have been going on for months and, unfortunately, these suspensions are showing no signs of a slowdown. Recently, a new batch of HELOC customers have reported receiving HELOC freeze notices from their lenders. Washington Post reporter Elizabeth Razzi explains: “My inbox is overstuffed with comments and suggestions from readers… In response to last [...] [...more]
Home equity borrowing has decreased sharply this quarter, with fewer borrowers taking out new lines or withdrawing from their current HELOCs. Forbes.com reports: “Mortgage equity withdrawal (MEW) is collapsing from the $700 billion annualized in 2005 to less than $20 billion in the second quarter of this year. Thus, with falling housing wealth and collapsing [...] [...more]
Is your home equity line of credit at risk for a line reduction or freeze? There’s a lot of factors that may come into play (your lender, your location, etc), but banks do have to meet legal obligations before taking away anyones home equity line. The Street recently published an article explaining the biggest risk [...] [...more]
In past years, I’ve argued that a home equity line of credit is generally a smarter choice than a home equity loan. Lines of credit allow borrowers to withdraw money only when they need it and pay interest only when the money is withdrawn. Pay down the line and stop paying interest. However, now that [...] [...more]
Because of the recent home equity line of credit freezes, many borrowers are choosing to withdraw their available balance and save it for future use. This isn’t a good strategy if you don’t plan on using the money soon – your withdrawal will cost you. However, low interest rates make it possible for borrowers to [...] [...more]
If your home equity line of credit has been frozen illegally, you may be able to appeal the decision. According to a recent Market Watch article, there are several ways to go about complaining. Here’s my summary of the options with additional links and phone numbers, which will hopefully be of use to a few [...] [...more]
If you’re relying on a home equity line of credit to keep you afloat during this economic crisis, you may want to reconsider that plan. The Boston Globe explains: “Some families don’t have any cash on hand, but are relying on a home equity line of credit (HELOC) if times get tough. The only problem [...] [...more]
Over the past couple months, I’ve posted quite a bit about Regulation Z and home equity lender’s responsibilities. HELOC lenders can freeze clients’ credit lines. But, they cannot do so without proper legal cause. The Washington Post recently reports: “This summer, both the Federal Deposit Insurance Corp. and the Office of Thrift Supervision issued guidance [...] [...more]
