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If you’re a homeowner, it’s important to stay aware of mortgage scams such as HELOC identity theft. According to a recent Consumer Affairs article, home equity identity theft has become increasingly common. Here’s how the scam works: “Some con artists steal consumers’ identities to drain Home Equity Line of Credit (HELOC). These HELOC loans differ from standard [...] [...more]
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One fact is clear from the past few months: home equity lenders are extremely unpredictable. Because of declining property values, many HELOC clients have had their lines frozen or decreased. It’s hard on borrowers, but it makes financial sense for the banks. However, HELOC lenders haven’t stopped at that. Many customers have been surprised to find [...] [...more]
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Washington Mutual just finished sending out the last of their HELOC freeze notices. The damage: customers have lost the opportunity to draw on $6 billion from home equity lines. We reported on this story earlier, but the total extent of the line freezes was not known at that time. Housing Wire explains the latest: “Washington [...] [...more]
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Over the past four months, we’ve been keeping a list of major lenders sending out home equity line freeze letters. To date, an estimated 400,000 HELOC freeze notices have been sent and we receive information about new line freezes almost weekly. Here’s the latest update. Lenders Freezing Home Equity Lines of Credit Countrywide (recently froze almost all [...] [...more]
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Washington Mutual customers may want to keep an eye on their mailboxes this week, as more HELOC freeze notices are on their way. According to the San Francisco Business Times, WaMu is sending out an undisclosed number of new line reduction letters: “Washington Mutual, Inc. has slashed or suspended $6 billion in available home equity credit [...] [...more]
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Now that HELOC lending standards have become tighter, prospective borrowers may want to consider working with a mortgage broker. Mortgage brokers can’t change the standards set by banks. But, they can explore a variety of lending options with you and advocate on your behalf. The Problems of Working Directly with a Lender When you go to [...] [...more]
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If you are using over 40% of your available credit, paying off your credit cards with a HELOC may improve your credit score. However, there are some risks involved. Applying and opening a HELOC will give your credit score a ding. However, you may be able to increase your score significantly by transferring your credit card [...] [...more]
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Several borrowers are reporting that Washington Mutual (WaMu) is still sending out HELOC freeze and reduction notices. A Los Angeles Times blog gives this account: “Last week a Realtor in San Diego wrote, ‘Just after I made a large payment of $10K (only $350 payment was due), they took away all of my credit line. [...] [...more]
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Most HELOC loans have an adjustable interest rate tied to the prime rate. Your total interest = the current prime rate + your margin (the markup the lender assigned you in the loan paperwork). Keeping track of the prime rate can help you decide when to withdraw money and estimate how much your monthly interest payment [...] [...more]
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Homeowners have two major home equity borrowing options: the home equity loan and the home equity line of credit (HELOC). Both options allow homeowners to take out a loan based on the existing equity in their properties. In both cases, the property is used as collateral and may be foreclosed upon should the borrower [...] [...more]
