Foreclosures seem to be slowing, but the country still isn’t in the clear. If your home is in danger of facing foreclosure becuase of a HELOC in default, it’s important to have some idea of what the bank will do. Here are the five primary ways HELOC foreclosure situations play out: The homeowner is given [...] [...more]
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]
Some financial experts advise clients to take out a HELOC as a security against potential job loss. But, this strategy only works if the homeowner is currently employed when the equity loan closes. WalletPop reports: “That’s a possible step to take before you lose your job, but not after you’ve lost it. Why? You most [...] [...more]
Many desperate homeowners are concerned that their HELOC lenders won’t give approval for their participation in the federal Making Home Affordable mortgage modification program. Good news: you do not need to get approval from your HELOC lender in order to apply or have your mortgage modified. The Daily Camera explains some of the qualifications necessary: [...] [...more]
In the current economy, many homeowners are worried about losing their jobs. Some experts suggest that taking out a home equity line of credit (HELOC) is a smart way to be prepared for a few months without any paychecks coming in. BankingMyWay reports: “One way is to get a home equity line of credit, or [...] [...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]
Here’s some unexpected good news on the home equity front: e-Trade’s troubling home equity loan portfolio actually saw some improvements in the first couple months of 2009. Reuters explains: “Delinquent home equity loans — which represent E*Trade’s greatest exposure to loan losses — totaled $753 million in February, up 1 percent from the end of [...] [...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]
The federal loan modification program, Making Home Affordable, provides a way for struggling homeowners to lower their monthly mortgage payments. Qualifying applicants can receive an interest rate reduction, making their new rate as low as 2% for a minimum of five years. They can also receive an annual incentive of up to $1,000, applied to [...] [...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]
